Question: Leah is working on a Discovery campaign and has been told to aim for a target CPA of $5. How much should she set up her daily budget to be in order to achieve that target?
- At least $5
- At least $10
- At least $50
- At least $500
Explanation
Google recommends setting the daily budget for campaigns using Target CPA at at least 10 times the target. With a target of $5, the recommended daily budget is $50. This gives Smart Bidding enough room to participate in auctions and optimize toward the target efficiently. A lower budget can restrict delivery and make it harder for the system to reach the desired CPA consistently. Google Help+1
Why the other options are incorrect
$5 equals the target itself, so it does not provide enough budget headroom for Target CPA optimization. Google Help
$10 is only 2 times the target, which is below Google’s recommended budget level for Target CPA campaigns. Google Help
$500 is far above the recommended minimum and is not the best-practice baseline for a $5 Target CPA target. Google Help
Source for verification
Best practices for high performing Demand Gen campaigns Google Help
Use a product feed to show your products in Demand Gen campaigns 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.