Which of the following tools can help marketers maximize performance of a value-based bidding strategy?

Analysis of Correct Answer(s)

• Target simulators (e.g., Target ROAS simulator, Target CPA simulator) are specifically designed to help marketers understand the potential impact of adjusting their bidding targets. For a value-based bidding strategy (like Target ROAS or Maximize Conversion Value), these simulators allow you to input different target values (e.g., a higher or lower Target ROAS percentage) and see forecasted changes in key performance indicators such as conversion value, conversions, and cost. This enables marketers to make data-driven decisions on how to set their targets to maximize performance based on their specific goals and budget constraints.

Analysis of Incorrect Options

• Keyword planner: This tool is primarily used for keyword research, discovering new keywords, getting bid estimates, and forecasting traffic for potential keywords. While essential for campaign setup, it doesn't directly help in simulating changes to a value-based bidding strategy's targets to maximize performance.
• Ad strength rating: This feature evaluates the quality and relevance of your ad copy and assets for Responsive Search Ads. A higher ad strength indicates a better ad, which can improve performance, but it is a measure of ad quality, not a tool for simulating the impact of different bidding strategy targets.
• Diagnostic insights: This tool provides information about why your ads might not be showing or are showing less frequently. It's a troubleshooting tool for identifying campaign issues, not an optimization tool for simulating the effect of changes to your value-based bidding targets.