What bidding strategy should Tracy, a pizzeria owner, use to get more people to call her business?
Correct Answer
Cost-per-acquisition (CPA)
Why is this the correct answer?
Tracy should use Cost-per-acquisition (CPA) bidding to get more people to call her pizzeria. By setting phone calls as a conversion action and using target CPA bidding, Google's algorithm will optimise bids specifically to drive more call conversions at her target cost. CPA bidding focuses on the business outcome Tracy actually wants — calls — rather than just clicks or impressions. With call conversion tracking in place, Google can identify which searches, devices, and times are most likely to result in calls and automatically bid higher for those opportunities.
Why are the other options wrong?
Cost-per-view (CPV)
Cost-per-view (CPV) is a video advertising bidding strategy for YouTube — it charges per video view, which is completely unrelated to driving phone calls to a local business.
Cost-per-thousand-impressions (CPM)
CPM (cost-per-thousand impressions) optimises for ad visibility and brand awareness — it does not focus on driving specific actions like phone calls.
Cost-per-click (CPC)
CPC bidding drives clicks to a website — while clicks can lead to calls, CPC does not specifically optimise for call conversions the way CPA bidding does.
Real-world example
Tracy sets up call conversion tracking with a 30-second minimum duration and a target CPA of £2 per call. Google's CPA bidding increases bids for searches on mobile devices at lunchtime and dinnertime — when call conversion rates are highest. Monthly calls increase from 180 to 340 while cost per call stays within her £2 target.
Official documentation: https://support.google.com/google-ads/answer/6268632
About the Google AdWords Fundamentals Exam (Retired)
The AdWords Fundamentals exam was retired when AdWords became Google Ads.
Exam guide and all 140 AdWords Fundamentals (Legacy) questions →Related AdWords Fundamentals (Legacy) questions
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