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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