How does target cost-per-acquisition (CPA) bidding determine the optimal cost-per-click (CPC) bid?

  •  It sets CPC bids as one-tenth of the current CPA bid setting
  •  It uses conversion history to set higher bids when a conversion is more likely
  •  It bids a static CPC value based on the current maximum CPC settings
  •  It adjusts CPC bids based on existing bid adjustments

The correct answer is:

  • It uses conversion history to set higher bids when a conversion is more likely.

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