Question: Fill in the blank: You should use a target CPA bidding strategy when you have _____.
- an efficient CPA
- an inefficient CPA
- a big advertising budget
- a small advertising budget
Explanation
A target CPA bidding strategy works best when a campaign already has a strong and stable cost per acquisition. HubSpot’s paid advertising guidance connects bidding decisions to performance data and optimization, which means automation needs an efficient baseline to work from. When acquisition costs are already healthy, the platform can use that benchmark to maintain or scale results more effectively. If the current CPA is weak, the bidding strategy has a poor target and is less likely to produce efficient outcomes. HubSpot Academy
Why the other options are incorrect
an inefficient CPA This gives the bidding system a weak cost benchmark, so it does not align with efficient optimization. HubSpot Academy
a big advertising budget Budget size alone does not determine whether target CPA is the right bidding approach. HubSpot Academy
a small advertising budget Budget size alone is not the deciding factor; performance efficiency is. HubSpot Academy
Source for verification
https://academy.hubspot.com/lessons/instagram-ads
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