How does Conversion Optimizer use an advertiser’s cost-per-acquisition (CPA) bid to determine the optimal equivalent cost-per-click (CPC) bid for each auction?

How does Conversion Optimizer use an advertiser’s cost-per-acquisition (CPA) bid to determine the optimal equivalent cost-per-click (CPC) bid for each auction?

  • The CPC bid is one-tenth of the CPA bid by default.
  • The actual CPC bid is based on current max CPC settings.
  • The CPA bid is the highest the system will allow the CPC bid to reach.
  • The CPA bid is multiplied by the predicted conversion rate.

The correct answer is:

  • The CPA bid is the highest the system will allow the CPC bid to reach.

Explanation:

You can read more here: https://support.google.com/adwords/answer/2471188