Manual CPC, Target ROAS, and Maximize Conversion Value for Shopping — which strategy fits which stage of account maturity, and what conversion data you need before switching.
Shopping bidding is where the money is literally decided — and yet it's the part of Shopping management most advertisers either overthink or completely automate too early. I've seen Shopping accounts running Target ROAS with 12 conversions in the last 30 days and wondering why the strategy keeps fluctuating between over and underspending. The exam tests Shopping bidding specifically because the stakes are high and the right answer depends on your conversion history, not just your goal. Here's the framework.
Correct answer: C. Manual CPC
Manual CPC lets you set a specific maximum bid for each product group, giving you direct control over how aggressively you compete in the auction for different product segments. It's the right starting point for new Shopping campaigns without conversion history, and it remains useful for accounts where margin control at the product group level is critical. The downside is that it requires active monitoring — you can't benefit from Google's auction-time signals without automation. I use Manual CPC with Enhanced CPC enabled as a middle ground when accounts are building their conversion history.
Correct answer: C. Target ROAS
Target ROAS tells Google to set bids to achieve a specific return on ad spend — for example, a 500% ROAS target means Google tries to generate ₹5 in revenue for every ₹1 spent. It's the natural bidding strategy for revenue-focused Shopping campaigns because it factors in conversion value (order value), not just conversion count. The key requirement is that revenue data must be passed back via conversion tracking accurately. I only move clients to Target ROAS once they have at least 30–50 transactions in the past 30 days and their revenue tracking is verified as accurate.
Correct answer: B. It tries to get the highest total revenue possible within the campaign budget, without targeting a specific ROAS — making it suitable for campaigns that want to maximise revenue before enough data exists to set a reliable ROAS target
Maximize Conversion Value is effectively Target ROAS without a specific target — Google optimises for the highest possible revenue within your budget, using whatever conversion value data is available. It's my preferred starting strategy for Shopping campaigns in the growth phase: enough conversion volume to benefit from Smart Bidding, but not yet enough consistency to commit to a specific ROAS target. Once performance stabilises, I layer in a Target ROAS and adjust it based on actual margin data.
Correct answer: B. For every ₹1 spent on ads, Google will optimise bids to generate ₹8 in conversion value (revenue)
ROAS is expressed as a percentage of revenue relative to spend. An 800% Target ROAS means Google optimises to achieve ₹8 in revenue for every ₹1 of ad spend. Setting this target too high causes the algorithm to underspend — it can't find enough auctions that meet the threshold. Setting it too low means you're leaving margin on the table. I set initial Target ROAS based on the client's actual margin — typically 3–5x the gross margin percentage — and then tighten or loosen it based on performance data over the following weeks.
Correct answer: B. Enhanced CPC automatically adjusts Manual CPC bids upward or downward in real time based on the likelihood of conversion, adding a layer of Smart Bidding signals without fully surrendering manual bid control
eCPC is a useful middle ground — you set the base bids manually, and Google adjusts them in real time based on conversion likelihood signals, up to a maximum of 30% above your set bid. It's particularly useful during the data-building phase when there isn't enough conversion history for full Smart Bidding, but enough to benefit from some automation. I use eCPC as a stepping stone: Manual → Manual with eCPC → Maximize Conversion Value → Target ROAS, progressing as conversion data accumulates.
Running Target ROAS on a Shopping campaign with under 30 conversions a month? That's one of the most common bidding mistakes I see — and it's usually why the campaign keeps going into learning mode repeatedly.
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