Google AdWords Exam 1 — Questions and Answers

Question 1: Anne-Marie’s business goal is to generate online sales of her handmade purses. Her AdWords costs are $100 per week and she wants to know if her advertising investment is paying off. What additional information do you need in order to calculate her return on investment (ROI)?

Costs to produce her purses and revenue generated from her ads (Correct answer)
Number of clicks on her ads and costs to produce her purses
How many times her ads have been viewed and clicked on
Number of clicks on her ads and revenue they generated

Correct answer: Costs to produce her purses and revenue generated from her ads

Return on Investment (ROI) is calculated as (Revenue - Cost) / Cost. To determine the true profit from her AdWords campaign, Anne-Marie needs to know not only her AdWords costs ($100) but also the revenue generated directly from those ads and the costs associated with producing the purses that were sold. This provides a complete picture of her net gain.

Question 2: How do cost-per-click (CPC) ads compete with cost-per-thousand impressions (CPM) ads on the Display Network?

CPM bids are effectively converted to CPC bids
Ads using CPC bids are not allowed to compete on the Display Network
CPC and CPM bids only compete against bids of the same type
CPC bids are effectively converted to CPM bids (Correct answer)

Correct answer: CPC bids are effectively converted to CPM bids

On the Google Display Network, all bids (including CPC, CPM, and CPV) are converted into an 'effective CPM' for the auction. This allows different bidding strategies to compete fairly against each other. The system estimates the number of clicks a CPC ad might receive and calculates an equivalent CPM value to determine its competitive strength.

Question 3: Which of these metrics is especially important to clients who are running a branding campaign?

Impressions (Correct answer)
Phone call conversions
Clickthrough rate (CTR)
Average cost-per-click (avg. CPC)

Correct answer: Impressions

Branding campaigns primarily aim to increase brand awareness and visibility among a target audience. Impressions are the most direct metric for measuring how many times an ad was shown, indicating the reach and exposure of the brand message. While other metrics are important for performance, impressions are key for gauging brand visibility.

Question 4: If you want to direct people to specific pages on your website from an ad, you can create an ad that uses:

previous visit extensions
callout extensions
location extensions
sitelink extensions (Correct answer)

Correct answer: sitelink extensions

Sitelink extensions allow you to add additional links to specific pages of your website directly below your main ad text. This enables users to navigate straight to relevant sections like product categories, contact pages, or specific services, improving user experience and potentially increasing click-through rates by offering more options.

Question 5: You can use Display Planner to:

see potential webpages where your ad can appear based on your keywords (Correct answer)
managed CPC bids for contextual campaigns within your account
see which images and text ads within your campaign are performing best on the specific websites you are targeting
run a report to determine which keywords are most likely to convert based on the past 30-days of your campaign

Correct answer: see potential webpages where your ad can appear based on your keywords

Display Planner (now largely integrated into the Google Ads interface for Display campaigns) is a tool designed to help advertisers plan their Display Network campaigns. It provides insights into potential placements, showing where ads could appear based on targeting criteria like keywords, interests, and demographics, helping to discover relevant webpages and apps.

Question 6: Higher Quality Scores typically result in:

lower costs and better ad positions (Correct answer)
less overall impressions
faster delivery of daily budget
higher costs and lower ad positions

Correct answer: lower costs and better ad positions

Quality Score is a diagnostic tool that measures the relevance and quality of your keywords, ads, and landing page. A higher Quality Score leads to a better Ad Rank, which means your ads can achieve higher positions on the search results page at a lower cost-per-click. Google rewards relevant and high-quality experiences for users, making advertising more efficient for those with good Quality Scores.

Question 7: An advertiser looking to drive conversions is using manual cost-per-click (CPC) bidding. Which factor should be most important for this advertiser when deciding keyword bids?

The bids of the next closest advertiser
The average profit per conversion
The Quality Score of the keyword
The profit derived from a paid click (Correct answer)

Correct answer: The profit derived from a paid click

When using manual cost-per-click (CPC) bidding with a goal of driving conversions, the ultimate aim is to ensure profitability. Therefore, an advertiser should set keyword bids based on the profit generated by each conversion, which is directly tied to the profit derived from a paid click. This approach ensures that the cost of acquiring a customer through a click does not exceed the value that customer brings, making the campaign financially viable.

Question 8: Which client would you advise to use radius targeting?

Denise, whose service can reach customers within 30 miles (Correct answer)
Christopher, who wants to promote his new product in select cities
Mabel, who wants to exclude her ads from certain cities
Luis, whose e-commerce business delivers nationwide

Correct answer: Denise, whose service can reach customers within 30 miles

Radius targeting allows advertisers to show their ads to customers within a specific geographical distance from a particular location. This targeting method is ideal for local businesses or service providers, like Denise, whose services are limited to a defined operational area. By setting a 30-mile radius, Denise can efficiently reach potential customers who are geographically able to utilize her service.

Question 9: What is the recommended next step if you noticed from the Search terms report that certain terms are leading to a high number of clicks on your ads?

Make sure relevant search terms are keywords and adjust your bid or ad text for these keywords (Correct answer)
Add search terms that are not leading to many clicks as negative keywords
Add sitelinks to your ads to make them even more prominent
Make sure all of these search terms are included as keywords, regardless of relevance

Correct answer: Make sure relevant search terms are keywords and adjust your bid or ad text for these keywords

The Search terms report reveals the actual queries users typed that triggered your ads. If certain terms are leading to a high number of clicks, it indicates strong user interest and relevance. The recommended next step is to add these relevant terms as keywords to gain better control over bidding and ad text, allowing for further optimization and improved performance for these high-performing searches.

Question 10: You can use audience targeting to show your ads to:

specific groups of people, based on their interests (Correct answer)
specific groups of people, based on their location
specific websites, based on specific interests
groups of websites, based on specific interests

Correct answer: specific groups of people, based on their interests

Audience targeting in Google Ads focuses on reaching specific groups of people based on various attributes beyond just keywords or demographics. This includes their interests, habits, what they are actively researching, or how they have interacted with your business previously. This allows advertisers to tailor their message to users who are most likely to be receptive to their ads.

Question 11: You would choose to advertise on the Display Network if you wanted to:

show ads on websites related to your business (Correct answer)
show ads on Google Shopping
show ads to people on non-Google search sites
show ads on Google Maps

Correct answer: show ads on websites related to your business

The Google Display Network (GDN) is designed to show visual ads across a vast network of websites, apps, and YouTube videos. Advertisers choose the Display Network primarily to reach users while they are browsing content related to their business or interests. This allows for brand awareness, remarketing, and contextual targeting on relevant websites, rather than showing ads on search results pages.

Question 12: Conversion Optimiser can help drive conversions by using your conversion history and:

cost-per-click (CPC) goals to show the optimal ad when a conversion is more likely
cost-per-acquisition (CPA) goals to raise your bid when a conversion is more likely
cost-per-click (CPC) goals to raise your bid when a conversion is more likely
cost-per-acquisition (CPA) goals to show the optimal ad when a conversion is more likely (Correct answer)

Correct answer: cost-per-acquisition (CPA) goals to show the optimal ad when a conversion is more likely

Conversion Optimizer, now often referred to as Target CPA bidding, is an automated bidding strategy that aims to get as many conversions as possible within a target cost-per-acquisition (CPA). It leverages historical conversion data and real-time signals to predict when a conversion is most likely to occur. Based on this prediction, it automatically adjusts bids and selects the optimal ad to show to maximize conversions within the set CPA goal.

Question 13: Which statistic indicates how often a click has led to a conversion?

Conversion rate (Correct answer)
Converted clicks
Cost-per-conversion
Clickthrough rate (CTR)

Correct answer: Conversion rate

Conversion rate is a key performance indicator (KPI) that directly measures the efficiency of your advertising efforts. It is calculated by dividing the number of conversions by the total number of clicks, then multiplying by 100 to get a percentage. This statistic precisely indicates how often a user who clicked on your ad went on to complete a desired action, such as a purchase or lead.

Question 14: Negative keywords can help advertisers refine the targeting of their ads by: OR Negative keywords can help advertisers better target their ads by:

reducing the number of irrelevant clicks (Correct answer)
reducing their campaign’s daily budget recommendations
raising the average position of their ads
increasing the number of relevant Display Network placements

Correct answer: reducing the number of irrelevant clicks

Negative keywords are crucial for refining ad targeting by preventing your ads from showing for irrelevant search queries. By adding terms that are unrelated to your products or services, you ensure that your ads are only displayed to users who are genuinely interested. This reduces wasted ad spend on irrelevant clicks, improves your ad's clickthrough rate, and ultimately leads to more qualified traffic.

Question 15: Your client is interested in switching from TV, print, and radio advertising. What are the return on investment (ROI) benefits of online advertising campaigns over traditional media advertising?

Traditional media is not always measurable, but online campaigns are highly measurable and you can analyze your click data (Correct answer)
Traditional media generates exposure, but online advertising campaign can guarantee sales
Online advertising is always less expensive than traditional media
Traditional media typically requires a predetermined quarterly budget, but online advertising usually lets you set your budget once a month at a fixed amount

Correct answer: Traditional media is not always measurable, but online campaigns are highly measurable and you can analyze your click data

A significant advantage of online advertising over traditional media is its superior measurability and transparency. Online campaigns provide detailed data on impressions, clicks, conversions, and costs, allowing advertisers to precisely track their return on investment (ROI) and optimize in real-time. Traditional media often lacks this granular tracking, making it difficult to attribute specific results to ad spend and hindering effective optimization.

Question 16: Target cost-per-acquisition (CPA) bidding can help drive conversions by using your conversion history and:

cost-per-acquisition (CPA) goals to raise your bid when a conversion is more likely (Correct answer)
cost-per-click (CPC) goals to raise your bid when a conversion is more likely
cost-per-acquisition (CPA) goals to show the optimal ad when a conversion is more likely
cost-per-click (CPC) goals to show the optimal ad when a conversion is more likely

Correct answer: cost-per-acquisition (CPA) goals to raise your bid when a conversion is more likely

Target cost-per-acquisition (CPA) bidding is an automated strategy designed to help advertisers get as many conversions as possible at or below their target CPA. It uses your campaign's conversion history and real-time signals to predict the likelihood of a conversion. When a conversion is deemed more likely, the system automatically raises your bid to increase the chances of securing that conversion within your CPA goal.

Question 17: When setting up a Search Network campaign for a client, you want her ad to get as many clicks as possible within her budget. Which bid strategy should you use to achieve this goal?

Cost-per-thousand impressions (CPM)
Manual cost-per-click (CPC)
Cost-per-acquisition (CPA)
Maximize Clicks (Correct answer)

Correct answer: Maximize Clicks

The 'Maximize Clicks' bidding strategy is specifically designed to help advertisers get as many clicks as possible within their set budget. Google Ads automatically adjusts bids in real-time to achieve this goal, making it the ideal choice when the primary objective is to drive maximum traffic to a website. Other strategies like CPA or manual CPC focus on conversions or specific bid control, respectively.

Question 18: You sell autographed sports memorabilia and want to reach people interested in sports. What’s one benefit of promoting your products with a ads in mobile apps campaign on the Display Network?

It allows you to show your ad on app categories that you choose (Correct answer)
It encourages people using mobile devices to install your app
It lets people who see your ad get directions to your store on Google Maps
It directs people to your online store to purchase your products

Correct answer: It allows you to show your ad on app categories that you choose

When promoting products like autographed sports memorabilia with ads in mobile apps on the Display Network, a key benefit is the ability to target specific app categories. This allows you to show your ads within apps that are relevant to sports, reaching users who have already demonstrated an interest in the subject. This focused targeting increases the likelihood of your ad being seen by potential customers.

Question 19: How would you recommend that William set his budget if he wants to spend US $608 per month on his campaign? OR An advertiser has decided that they want to spend $608 per month for their campaign. How would you recommend they set their budget in their AdWords account?

Set a bid of $20 per ad group
Set a daily budget of $20 for the advertiser’s account
Set a bid of $20 for the advertiser’s campaign
Set a daily budget of $20 for the advertiser’s campaign (Correct answer)

Correct answer: Set a daily budget of $20 for the advertiser’s campaign

Google Ads budgets are set on a daily basis, not monthly. To determine the appropriate daily budget for a monthly spend of US $608, you divide the monthly amount by the average number of days in a month (approximately 30.4). Therefore, $608 / 30.4 equals $20, meaning William should set a daily budget of $20 for his campaign to spend around $608 per month.

Question 20: Using the paid & organic report for her travel website, Karen noticed a relatively high organic clicks/query rate for the search query “Hawaii vacations.” What does this mean?

People who see Karen’s site in relevant organic search results often click through to her site (Correct answer)
Karen’s ads don?t often show for the search query
Karen’s average organic position is higher than other advertisers’, but her average ad position is lower than other advertisers’
Karen’s ads often show below her organic results for the search query

Correct answer: People who see Karen’s site in relevant organic search results often click through to her site

The organic clicks/query rate in the paid & organic report indicates how often users clicked on an organic search result for a specific query when it appeared. A high rate for 'Hawaii vacations' means that when Karen's website shows up in organic search results for that term, users frequently find it relevant and choose to click through to her site. This suggests strong organic visibility and appeal for that particular search query.

Question 21: Your ad can show to a potential customer when your targeted language matches:

a user’s Google interface language setting (Correct answer)
the language of websites a user visits most often
a user’s operating system language
a user’s browser setting

Correct answer: a user’s Google interface language setting

Google Ads determines which language-targeted ads to show based on a user's Google interface language setting. This ensures that ads are displayed in a language the user has explicitly chosen for their Google experience, maximizing relevance and comprehension. While other factors might influence a user's language, the interface setting is the primary determinant for ad serving.

Question 22: What does “converted clicks” measure?

The total number of clicks that led to a conversion (Correct answer)
The percentage of clicks that led to a conversion
The total number of clicks within your chosen conversion window
The total number of conversions divided by the total number of clicks

Correct answer: The total number of clicks that led to a conversion

The 'converted clicks' metric measures the total number of unique clicks that led to one or more conversions within your defined conversion window. If a single click results in multiple conversions (e.g., a user buys several items after one ad click), it is still counted as one converted click. This metric helps advertisers understand how many distinct ad interactions ultimately drove value.

Question 23: Which strategy should Giorgio use to increase the number of relevant clicks from his Search Network campaign?

Add new relevant keywords and remove keywords with low clickthrough rate (CTR) (Correct answer)
Increase bids for ads with the lowest average position and clickthrough rate (CTR)
Increase bids on relevant keywords with low clicks and clickthrough rate (CTR)
Broaden his keyword list for ads with the lowest clickthrough rate (CTR)

Correct answer: Add new relevant keywords and remove keywords with low clickthrough rate (CTR)

To increase the number of relevant clicks from a Search Network campaign, Giorgio should continuously optimize his keyword list. Adding new, highly relevant keywords expands reach to genuinely interested users, while removing keywords with a low clickthrough rate (CTR) eliminates terms that are not engaging or relevant to users. This strategy focuses the budget on effective keywords, improving overall click relevance and volume.

Question 24: Why should you link your client’s AdWords account to Google’s Webmaster Tools?

See if people reach your client’s website via ads or organic search results (Correct answer)
See which campaigns have the biggest changes in clicks, costs, and conversions
See how your ads performed when triggered by actual searches
See how often your ads rank higher in search results than those of other advertisers

Correct answer: See if people reach your client’s website via ads or organic search results

Linking your client's Google Ads account to Google Search Console (formerly Webmaster Tools) provides invaluable insights into how users discover their website through both paid and organic search. This integration allows you to compare performance data, identify opportunities to improve organic rankings, and understand the synergistic relationship between your ad campaigns and natural search visibility, offering a holistic view of online presence.

Google AdWords Exam 1

Anne-Marie’s business goal is to generate online sales of her handmade purses.
Her AdWords costs are $100 per week and she wants to know if her advertising investment is paying off.
What additional information do you need in order to calculate her return on investment (ROI)?