Question: Elaine wants to make $4 of revenue for every dollar she spends in a Display campaign. How should she set up the campaign?
- She should assign a Target CPA of $4.
- She should set a Target ROAS of 400%.
- She should assign a daily budget of at least $400.
- She should set a conversion rate of 25%.
Explanation
In Target ROAS, the percentage represents conversion value divided by ad cost. A goal of 400% corresponds to a 4-to-1 revenue return, so it matches the required efficiency target. Google Ads uses Smart Bidding to optimize toward conversion value while trying to maintain that return level. This makes it the correct setup when the objective is revenue efficiency rather than a fixed cost per acquisition. Google Help+1
Why the other options are incorrect
Target CPA controls average cost per conversion, not the revenue returned from ad spend. Google Help
Daily budget sets spend limits, but it does not define the required return level. Google Help
Conversion rate is a performance outcome, not a bidding target used to enforce a revenue-to-cost goal. Google Help
Source for verification
Google Ads Help: About Target ROAS bidding. Google Help
Google Ads Help: Determine a bid strategy based on your goals. Google Help
The answer(s) to the question is highlighted in the BOLD text above. You can also find more questions and answers related to the exams on the "Google Ads Display Professional Certification" page.