(A) an efficient CPA
(B) an inefficient CPA
(C) a big advertising budget
(D) a small advertising budget
You should use a target CPA bidding strategy when you have an efficient CPA. If you don’t have an efficient CPA then the ad algorithm will spend higher than your target CPA to achieve a conversion and this will result in a loss for you.
If you have an efficient CPA then the ad algorithm will spend less than or equal to that target CPA to achieve a conversion which means you will make some profit for every conversion.
This question is a part of the HubSpot Digital Advertising Certification Exam. You can find answers to all the questions asked in this exam on our HubSpot Digital Advertising Certification Exam Answers page.