Question: Carlos is creating a Discovery campaign with a target CPA of $5 but is unsure what his daily budget should be. What plan should Carlos take in order to follow best practice?
- He should set a daily budget of at least $5.
- He should set a daily budget of at least $500.
- He should set a daily budget of at least $10.
- He should set a daily budget of at least $50.
Explanation
With Target CPA, Google recommends setting the daily budget at least 10 times the target. A $5 Target CPA therefore points to a minimum daily budget of $50. This gives Smart Bidding enough room to participate in auctions and pursue conversions without being constrained too quickly by budget. A lower budget can limit delivery and reduce the system’s ability to optimize efficiently. Google Help+1
Why the other options are incorrect
A) A $5 budget matches the target itself, so it does not provide enough room for Target CPA bidding to optimize effectively. Google Help+1
B) $500 is far above the recommended minimum and is not the best-practice baseline for a $5 Target CPA. Google Help+1
C) $10 is only 2 times the target, which is below Google’s recommended starting budget level. Google Help+1
Source for verification
https://support.google.com/google-ads/answer/16797388
https://support.google.com/google-ads/answer/14693848
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