What's the purpose of uncapping budgets to fully capture AI's benefits?

Google's AI only works in newly created campaigns with budgets of at least $1,000 per day.

Campaigns that incorporate Google's AI spend more of their budget to reach more customers.

When a campaign's budget is limited, a Smart Bidding strategy will convert back to manual bidding.

Campaigns need enough flexibility in the budget to allow Google's AI to work to its fullest potential.


Choose an option to see if it’s correct. Check the explanation below. Learn Smarter, not Harder.

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Explanation: What’s the purpose of uncapping budgets to fully capture AI’s benefits?


Explanation: The correct answer is **Campaigns need enough flexibility in the budget to allow Google's AI to work to its fullest potential**. Uncapping budgets allows campaigns to fully leverage Google's AI capabilities by providing flexibility in spending. With uncapped budgets, Google's machine learning algorithms have the freedom to adjust bids dynamically based on real-time data and performance signals to maximize campaign objectives such as conversions, clicks, or ROAS (Return on Ad Spend). This flexibility enables AI to optimize bidding strategies more effectively, ensuring that campaigns have the best chance of achieving their goals. Moreover, uncapping budgets prevents AI from being restricted by budget constraints, allowing it to explore more opportunities and scale campaigns to reach a wider audience, ultimately driving better results and maximizing the benefits of AI-driven advertising.
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