Yandi's online Bike Store is choosing an automated bidding strategy. They want to get as much conversion value and revenue as possible for given return on ad spend objective. Which bid strategy should they choose?
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Correct answer: Target return on advertising spend.
Why this is the answer
The selected answer option is correct because Target return on advertising spend (ROAS) is the ideal bidding strategy for Yandi's online Bike Store to maximize conversion value and revenue while achieving a specific return on ad spend objective. This bidding strategy focuses on optimizing the campaign to meet the target ROAS, which means Yandi can set a desired return for every dollar spent on advertising. The strategy automatically adjusts bids to maximize the revenue generated from the campaign within that specific return threshold. This approach is particularly effective when the goal is to achieve both high conversion value and revenue, ensuring that the store's ad spend is aligned with its financial objectives. Unlike other strategies, such as "Maximum conversions" or "Target cost-per-action," which focus more on volume or cost efficiency, the Target ROAS strategy is directly designed to optimize for a set return on investment, making it the best choice for Yandi’s goals.
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