Question: Your client has lots of repeat customers and would like your help reaching consumers who will drive the highest conversion revenue in the future. How would you recommend they achieve their goal using Smart Bidding?
- Recommend your client use enhanced CPC, as these are the metrics of the future.
- Recommend your client use historical purchase data and optimize toward lifetime value (LTV).
- Recommend your client add smart creatives like RSA to campaigns and ad groups.
- Recommend your client double down on lead generation efforts to drive new purchasers.
Explanation
Smart Bidding can optimize toward conversion value when customer value differs across repeat purchasers. Historical purchase data helps identify customers with stronger future value. Lifetime value signals allow bidding to prioritize revenue that is expected to matter beyond a single transaction. This supports a value-based strategy rather than optimizing only for conversion volume.
Why the other options are incorrect
Lead generation is incorrect because repeat-customer revenue is better addressed through value signals, not only new purchaser volume.
Smart creatives is incorrect because responsive search ads can improve ad relevance, but they do not direct bidding toward future customer value.
Enhanced CPC is incorrect because it is not the recommended Smart Bidding strategy for optimizing toward long-term customer value.
Source for verification
https://support.google.com/google-ads/answer/15099424
https://support.google.com/google-ads/answer/7686447
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