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10 Challenging Exam Style Questions to give you a taste of whats in the
Fundamentals Exam.
Introduction If you are reading this, then you’re probably preparing to take the Advertising Fundamentals exam and are not quite sure of what’s in store for you? … or you feel a little under confident about how well you have prepared for the exam maybe? Whilst I firmly believe that thorough study and preparation are key to success in AdWords exam and, it can also be useful to gain a little insight into the style of the exam too. I’m regularly asked by many exam aspirants “Exactly how tricky are the Fundamentals questions to answer?”. With this in mind, I’ve created a list of 10 exam style questions and answers, with explanations noting why you should be careful when analysing, and choosing what you think is correct. If you are curious of what to expect, then read on … Questions discussed are from the iPassExam Fundamentals question bank and have been written to match the the topics covered in the Google AdWords Fundamentals study guide and the real Advertising Fundamentals exam. Question 3 Which of these options accurately describes how conversion rate is calculated? A. Number of ad impressions divided by the number of ad clicks B. Number of conversions divided by the number of ad impressions C. Number of conversions divided by the number of ad clicks D. Number of clicks divided by the number of conversions Explanation There are a number of questions featuring in the exam that test your understanding of what conversions are and conversion metrics, and this question could be considered difficult as you may know the specific statistics required to calculate a conversion rate, but you may not specifically recall the order in which the figures should be calculated when faced with the real exam and the clock counting down. Don’t let the distractor options fluster you. Remember, conversion rate provides a percentage statistic of how many of the people who actually clicked your ad to visit your site; then converted. Many users click your ad to visit your site, but not every ad click will result in a conversion being completed. Conversion rate is calculated by dividing the number of conversions by the number of ad clicks. Calculating the number of ad impressions divided by the number of ad clicks will not provide a conversion rate. Neither will dividing the number of conversions by the number of ad impressions, or dividing the number of clicks by the number of conversions. Question 4 Your client is new to AdWords and is feeling rather anxious about his advertising budget. Which of the following options would you explain to your client with regard to how the AdWords system helps advertisers maintain control of their budget? A. The AdWords system will adjust your maximum costperclick bids by up to 20% more than your budget allows B. The AdWords system will charge an extra 20% of your specified daily budget to keep ads running for longer if the system determines that your campaign is restricted by budget C. The AdWords system allows 20% more clicks to occur on busy traffic days, but you will never be charged more than 30.4 multiplied by your specified daily budget amount per billing period D. The AdWords system will allow your ads to receive an extra 30.4 clicks per day on average over a given billing period when an advertiser sets a daily budget increase of at least 20% Explanation I’ve included this question in this article as it tries to distract you from the correct answer by using the relevant figures that are key to the correct answer, only with false information. The correct answer is “The AdWords system allows 20% more clicks to occur on busy traffic days, but you will never be charged more than 30.4 multiplied by your specified daily budget amount per billing period”. Google AdWords advise that you should decide on a monetary amount per month that you are comfortable spending, and then divide that amount by 30.4 to calculate your daily budget amount. For example, if I decided that I was comfortable spending around $500 per month on AdWords: $500 / 30.4 days = $16.45 per day. But, say that my campaign didn’t reach its daily budget cap of $16.45 on some days because the traffic for my keywords was quieter, but on other days traffic for my keywords was busy? This is where the 20% figure comes into play. As stated in the correct answer, “The AdWords system allows 20% more clicks to occur on busy traffic days, but you will never be charged more than 30.4 multiplied by your specified daily budget amount per billing period”. This basically means that the system will allow the unused budget from quieter traffic days to be used on busier traffic days for up to 20% more clicks to happen. But, you will never pay more than your daily budget x 30.4. The AdWords system will never “adjust your maximum costperclick bids by up to 20% more than your budget allows” unless you specifically set up a bidding option or bid adjustment for it to do so. It also would never “charge an extra 20% of your specified daily budget to keep ads running for longer if the system determines that your campaign is restricted by budget”. You are in control of your budget with AdWords, and you never pay more than you have stated you will pay in a billing cycle. Finally, the option “the AdWords system will allow your ads to receive an extra 30.4 clicks per day on average over a given billing period when an advertiser sets a daily budget increase of at least 20%” is complete nonsense! The AdWords system does not ever make such guarantees. Question 7 In a Display Network ad auction, how can ads using the costperclick pricing model compete against ads using the costperthousand impressions pricing model? A. CPM bids are effectively changed into enhanced CPC bids B. CPC bids are effectively changed into CPM bids C. It's not possible for CPC bids to compete with CPM bids D. The CPC bidding option cannot be used on the Google Display Network Explanation I’ve chosen this question to include in the article as it has existed in the exam for years but with a slightly edited version since the latest refresh. The previous Advertising Fundamentals exams have always specifically referred to eCPM in the correct answer, which meant effective cost per thousand impressions. There is not really much of a mention of this topic in the Fundamentals exam study guide. First of all, the answer option “The CPC bidding option cannot be used on the Google Display Network” is nonsense. You absolutely can use the CPC bidding in a Google Display Network campaign if you wish to do so (you can’t however use CPM bidding to run a campaign on the Google Search Network, don’t let the two confuse you). The answer option “It's not possible for CPC bids to compete with CPM bids” is also an incorrect statement, as CPC and CPM bids can and do compete with each other in a Display Network auction. “CPM bids are effectively changed into enhanced CPC bids” is just a false answer; remember, it’s a Display Network auction where the CPM bidding option really ‘comes into it’s own’. In today’s updated version of the exam, the answer would be stated along the lines of “CPC bids are effectively changed into CPM bids”. To get an ‘effective CPM’ bid, the AdWords system looks at the CPC bid and gives an estimate of how many clicks the ad may receive if it were to receive 1000 impressions. This in then compared to the CPM bid which is set to state how much the advertiser is prepared to pay for every 1000 views of an ad. Question 8 Doug notices that some of the ads in his ad group are showing on the bottom of the first page of results. In order to increase visibility of his ads by achieving a higher position, Doug should use the ___ flexible bid strategy. A. Target search page location B. Target outranking share C. Target return on ad spend D. Target costperacquisition Explanation There are many different bidding options and flexible bidding strategy choices with AdWords, and the exam is crammed full of questions that test your understanding of what they are, how they work and when they should be used. This question specifically asks about increasing visibility of the ads by achieving a higher position in the first page of search results. The most appropriate flexible bidding strategy in this case would be “Target search page location”, as this bid strategy type is designed to make automatic bid adjustments that will aid in getting your ad to the top of the page (or to the first page if it wasn’t already showing there). The distractor option in this question is “target outranking share”. This bid strategy will automatically raise or lower bids so it’s possible that your ads can outrank other ads from another domain. Remember, the question specifically asked about increasing visibility and achieving a higher position, not about outranking ads from another domain. “Target return on ad spend” and “target costperacquisition” are bid strategies both related to conversions rather than achieving a higher position. Question 9 John owns a chain of health clubs and he is aware that people who have previously visited his website also browse specific diet and nutrition sites. Which of these targeting methods would be appropriate for John to gain the attention of these users? A. Topic B. Remarketing C. Demographic D. Placement Explanation Whilst Topic targeting could be considered the correct answer to this question because of the “browse specific diet and nutrition sites” section of the question, I’m including this question to demonstrate that you must fully read and digest all of the question before answering. The question states that John already knows “that people who have previously visited his website also browse specific diet and nutrition sites”. The key to this question answer is that people have previously visited his site and they browse specific diet and nutrition sites. In this case, John would be best to use remarketing. Here’s an example: John wants to increase the number of gym membership subscriptions his business is receiving, and he already has a page that discusses the advantages and cost of a monthly membership fee. If John added a remarketing tag to his membership sign up page and created a remarketing list to collect the cookie ID’s of each user who visited his membership page but did not proceed to complete the payment process for a membership, site visitors who fitted this criteria would be added to it. He can then create a remarketing campaign and target those visitors when they visit specific diet and nutrition sites, so he can display a tailor made message to them (such as sign up today and save 20% off your first month) and attempt to regain their attention.