Google Adwords Fundamental Exam Question:

When setting up a campaign, you can use Display Planner to get an idea of the budget and bids you should set based on your:

Options:

  1. traffic estimates for placement ideas
  2. historical conversion rate estimates for your keyword and placement ideas
  3. traffic estimates for your keyword ideas
  4. historical cost-per-click (CPC) estimates for your keyword and placement ideas

Answer: 

The correct answer is: 4. historical cost-per-click (CPC) estimates for your keyword and placement ideas

Explanation for Correct Answer

When setting up a campaign, you can use Display Planner to get an idea of the budget and bids you should set based on your campaign objectives, target audience, and desired outcomes. Display Planner is a tool provided by Google Ads (now known as Google Ads) that helps advertisers plan and optimize their display advertising campaigns. Here’s how it can assist you:

  1. Audience Insights: Display Planner can provide insights into the potential reach of your campaign based on your selected audience targeting options. It helps you estimate how many impressions and clicks you might receive from your target audience.
  2. Budget Estimations: By inputting your campaign budget, Display Planner can provide estimates of how your budget allocation will impact the performance of your campaign. It can suggest a daily or monthly budget that aligns with your goals.
  3. Bid Recommendations: Display Planner can offer bid recommendations to help you determine the appropriate bids for your ad placements. It takes into account factors like competition, the ad format you’re using, and the expected click-through rates (CTR) for your ads.
  4. Keyword Suggestions: If you’re running a display campaign that involves keywords, Display Planner can suggest relevant keywords and estimated bid ranges to help you optimize your keyword strategy.
  5. Ad Format Guidance: It can also provide insights into which ad formats (e.g., text ads, image ads, video ads) are likely to perform best for your campaign.
  6. Content Ideas: Display Planner can suggest placements on websites, apps, and videos that are relevant to your campaign, helping you identify potential inventory for your ads.
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Summary

Display Planner is a valuable tool that can assist you in making informed decisions about your campaign’s budget and bids. It helps you tailor your campaign to your specific goals and audience, ensuring that you allocate your resources effectively and optimize your campaign for success.”