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Q:

Why does a lower Cost Per Acquisition (CPA) not indicate a higher profit?

Answer

A lower CPA may be accompanied by lower sales volume, reducing overall profit.

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Q:

What can you expect if you raise your bids?

Answer

More conversions and a higher CPA, in general.

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Q:

What is one way you can increase CTRs?

Answer

Add negative keywords to the ad group to reduce irrelevant impressions.

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Q:

If you have a keyword with a low CTR, what can you expect?

Answer

A lower Quality Score on the Search Network.

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Q:

What is one benefit of not using a predetermined budget for AdWords advertising, compared to radio, print, and TV advertising?

Answer

Online campaigns are highly measurable and may be able to generate an automatic positive ROI. As long as ROI remains positive, it can be strategic to capture all traffic without a predetermined budget.

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Q:

When a CPM and CPC bid compete against each other, how does Google determine each ad’s position?

Answer

Google estimates how many clicks the ad might receive in 1000 impressions to get the comparison.

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Q:

When is Cost Per Thousand Impressions (CPM) bidding not available?

Answer

If your campaign is opted in to the Search Network.

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Q:

What should you use Ad Groups for?

Answer

To organize ads by common themes that you want to advertise on.

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