Question: How should an advertiser set up a Display campaign if they want to make $4 of revenue for every dollar they spend?
- They should assign a daily budget of at least $400.
- They should set a conversion rate of 25%.
- They should assign a Target CPA of $4.
- They should set a Target ROAS of 400%.
Explanation
Target ROAS expresses the desired revenue return as a percentage of ad spend. A goal of earning $4 for every $1 spent equals 400% ROAS, so that is the correct bidding target for this setup. Google Ads uses Target ROAS as a Smart Bidding strategy to optimize for conversion value while aiming for the specified return level. This matches a revenue-efficiency objective, not a cost-per-conversion objective or a budget-setting rule. Google Help+1
Why the other options are incorrect
A) A daily budget controls how much can be spent, but it does not define the required revenue return per advertising dollar. Google Help
B) Conversion rate measures how often interactions become conversions, not how much revenue is generated for each dollar spent. Google Help
C) Target CPA optimizes for average cost per conversion, which is different from optimizing for revenue return. Google Help+1
Source for verification
https://support.google.com/google-ads/answer/2472725?hl=en
https://support.google.com/google-ads/answer/7065882?hl=en
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.