You own a small business that sells baseball caps. You're ready to run your first Smart Shopping campaign that uses a set budget. How does the system allocate budget on a Smart Shopping campaign?

Budget is automatically allocated by campaign, so you'll need to create a separate campaign by channel, and Smart Shopping will optimize budget.

Budget is automatically allocated across channels, based on performance. You don't need to create a separate campaign for each channel.

Budget is manually allocated across channels, based on your channel preference. You have control over the campaign setup while manually optimizing by channel.

Budget is manually allocated by campaign, so you'll need to create a separate campaign by channel and budget.


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

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Explanation: You own a small business that sells baseball caps. You’re ready to run your first Smart Shopping campaign that uses a set budget. How does the system allocate budget on a Smart Shopping campaign?


Explanation: In a Smart Shopping campaign, the system automatically allocates the budget **across channels, based on performance**. This means that the campaign dynamically distributes the allocated budget across various Google advertising channels, such as Google Search, Display Network, YouTube, and Gmail, based on the performance of each channel. By doing so, the campaign aims to maximize the overall performance and return on investment (ROI) by prioritizing the channels that are driving the most conversions and revenue. Unlike traditional campaigns where advertisers may need to manually allocate budget by channel or campaign, Smart Shopping campaigns leverage machine learning and automated bidding strategies to optimize budget allocation in real-time, ensuring that resources are directed towards the most effective advertising channels. This automated approach streamlines campaign management and allows advertisers to focus on strategic decision-making rather than manual budget adjustments, making it an efficient and effective solution for small businesses looking to maximize their advertising efforts with a set budget.

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