Smart Bidding uses first-party data to optimize toward business goals.

• Second-party data
• Third-party data
• Google data
• First-party data

The correct answer is: First-party data

Explanation: Smart Bidding uses first-party data to optimize toward business goals. This type of data, which includes conversion data such as sales or leads, is collected directly from interactions with a business’s own properties. By leveraging first-party data, combined with Google’s machine learning algorithms, Smart Bidding can set precise bids in each auction, enhancing performance while maintaining privacy compliance.

Reference article: Automate and Optimize Your Bidding Strategy