Data shows that your client’s ad that appears to people in San Francisco gets 120 conversions at a cost of US$1200 and cost-per-acquisition (CPA) of US$10, while ads showing in Houston get 70 conversions at a cost of US$1400 and CPA of US$20. If you have a CPA goal of US$12, what bid adjustment would you set for each location?

  •  +20% for San Francisco, -20% for Houston
  •  +20% for San Francisco, -40% for Houston
  •  +40% for San Francisco, -40% for Houston
  •  +40% for San Francisco, -20% for Houston

The correct answer is:

  • +20% for San Francisco, -40% for Houston.

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