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

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

100% Correct Answer

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