Now let’s bring in bid adjustments. This auction for the keyword “baseball cap” is for the top of search placement. Again, assume that this is a simplified version of the typical auction that only takes into account the bid and bidding features. Which bid wins the auction?

(A) $1.85, dynamic bids – up and down, 100% bid adjustment [maximum bid $7.40]

(B) $1.00, dynamic bids – up and down, 300% bid adjustment [maximum bid $8.00]

(C) $2.50, dynamic bids – down only, 150% bid adjustment [maximum bid $6.25]

(D) $0.79, fixed, 600% bid adjustment [maximum bid $5.53]

Explanation

The bid for $1.00 will win the auction. The bid adjustment increases the bid by 300% for the top of search placement, making the bid $4.00, and then dynamic bids – up and down increases that bid by up to 100%, making the final maximum bid $8.00.

Conclusion

This question is a part of the Strategies for Sponsored Products chapter from the Set up a Sponsored ads campaign lesson unit. You can find all the answers asked in this exam on our Set up a Sponsored ads campaign Answers page.

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