Question: How much of a daily budget should an advertiser set for a Discovery campaign if they are aiming for a target CPA of $5?
- At least $50
- At least $500
- At least $5
- At least $10
Explanation
Google recommends setting the daily budget at about 10 times the target CPA for this campaign setup. Applying that rule to a $5 target CPA gives a minimum daily budget of $50. This gives Smart Bidding enough room to find conversions without being limited too quickly by budget. A smaller budget can restrict delivery and make optimization less stable in the early phase. Google Help+1
Why the other options are incorrect
B) $500 is far above the standard 10x budgeting guideline, so it is not the minimum required level. Google Help+1
C) $5 equals the target CPA itself and does not provide enough budget headroom for bidding optimization. Google Help+1
D) $10 is only 2 times the target CPA, 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/13721750
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.