A business owner is using a Google Video campaign to drive awareness of a new service that their company will soon release. They're considering inflating their target cost-per-thousand impressions (tCPM) bid to achieve their goal. Why should they avoid inflating the tCPM bid for this new campaign?
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Correct answer: Inflation might cause too many impressions of the same ads to serve to the same users..
Why this is the answer
Inflating the tCPM bid excessively can lead to over-serving ads to the same users, which is known as ad fatigue. While a higher bid increases the likelihood of winning auctions, an unnecessarily high bid can result in showing the same ad to the same person multiple times when a lower bid would have achieved sufficient reach. This can annoy users and waste ad spend without effectively increasing awareness or unique reach. The goal for a new service launch is broad awareness, not repetitive exposure to the same individuals. Targeting irrelevant demographics or placements (second option) is typically a result of poor targeting settings, not bid inflation. Bid inflation doesn't directly prevent other campaigns from running (third option); budget allocation and campaign settings determine that. While inflation can deplete the budget faster, the core issue when aiming for awareness is that it might not increase unique reach (fourth option) if impressions are concentrated on the same users.
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