Which Smart Bidding strategy optimizes for value?

Analysis of Correct Answer(s)

• Target ROAS (Return On Ad Spend): This Smart Bidding strategy is specifically designed to optimize for conversion value. It automatically sets bids to help you get as much conversion value as possible at a target return on ad spend. By focusing on the value associated with each conversion (e.g., revenue from a sale), it directly aligns with maximizing profit or revenue, making it the ideal choice for value optimization.

Analysis of Incorrect Options

• Maximize clicks: This strategy focuses on generating the highest possible volume of clicks for your budget. It optimizes for traffic, not the monetary value of those clicks or subsequent conversions.
• Maximize conversions: This strategy aims to get the highest possible number of conversions within your budget. While conversions are valuable, this strategy does not differentiate between the value of different conversions (e.g., a high-value product sale vs. a low-value lead form submission). It prioritizes quantity over specific monetary worth.
• Target Impression Share: This strategy optimizes for visibility by aiming to show your ads a specific percentage of the time in a desired location (e.g., absolute top of page). It focuses on ad prominence and brand awareness, not the financial value of conversions.