You work for a clothing retailer and want to optimize their Display & Video 360 campaign for customers who spend the most money and have the top transaction return on ad spend. What bidding strategy should you use?

Analysis of Correct Answer(s)

• Custom bidding: This is the most suitable strategy for this specific, value-driven goal. Custom bidding allows you to create your own bidding algorithm using scripts. You can define what signals are most important—in this case, you would use Floodlight data to prioritize users who generate high transaction values and a strong Return on Ad Spend (ROAS). This provides the ultimate flexibility to optimize for complex, business-specific KPIs beyond standard conversion or click metrics.

• Active View: This bidding approach optimizes towards a viewable impression goal. While it doesn't directly optimize for ROAS, it is a crucial component for performance. By bidding for impressions that are highly likely to be seen by users, you increase the quality of your ad placements. Higher viewability ensures your message is actually delivered, which is a foundational step to driving engagement and, ultimately, high-value conversions from qualified users.

Analysis of Incorrect Options

• Maximize conversions: This strategy focuses on generating the highest number of conversions, regardless of their monetary value. It would treat a $10 sale the same as a $500 sale, which does not align with the goal of targeting customers who spend the most.

• Maximize clicks: This strategy is designed to drive the most traffic to a website for a given budget. It optimizes for clicks, not for the actions users take after clicking, making it unsuitable for a goal based on transaction value and ROAS.