Target cost-per-acquisition (CPA) bidding can help drive conversions by using your conversion history and:
Correct Answer
cost-per-acquisition (CPA) goals to raise your bid when a conversion is more likely
Why is this the correct answer?
Target CPA bidding uses your conversion history and CPA goals to raise your bid when a conversion is more likely. Google's machine learning analyses signals like device, location, time of day, browser, and past conversion patterns to predict when a user is more likely to convert. When the algorithm identifies a high-probability conversion opportunity, it automatically raises the bid to compete more aggressively for that click. This dynamic bidding ensures budget is concentrated on the highest-quality traffic moments while staying within the target CPA.
Why are the other options incorrect?
cost-per-acquisition (CPA) goals to show the optimal ad when a conversion is more likely
This answer is partially correct about CPA goals but incorrect about what target CPA does — it raises bids when conversion is likely, not simply shows the optimal ad.
cost-per-click (CPC) goals to show the optimal ad when a conversion is more likely
Target CPA uses CPA goals, not CPC goals. It is an automated conversion-focused bidding strategy, not a manual CPC adjustment mechanism.
cost-per-click (CPC) goals to raise your bid when a conversion is more likely
Target CPA uses CPA goals to raise bids, not CPC goals. The strategy is defined by a target cost per acquisition, not a target cost per click.
Real-World Example
A travel agency sets a target CPA of £45 for flight bookings. Google's algorithm identifies that searches on Sunday evenings from users on desktop who previously visited flight comparison sites convert at 3x the average rate. Bids are automatically raised by 80% for these moments, capturing high-intent traffic while the algorithm reduces bids for low-probability searches to maintain the £45 average CPA.