The performance planner has been available in Google Ads for a while. For advertisers on Google Ads, this means that this tool can better plan investments and generate more conversions. So reason enough to take a closer look at the tool.
Application and function
The performance planner can be found in the Google Ads interface under Tools and Settings. You then have to select the forecast period, the measured value and (optionally) the target.
The forecast plan that has now been created shows how much budget has to be spent in the predefined period in order to achieve the set goals. The blue line stands for the planned changes, the gray point shows the data based on the existing settings. While this is immutable, the blue point is movable on its line. If you move this, the forecast values are displayed. If you increase or decrease expenditure, you can test what changes will occur. The dashed gray line indicates how much budget must be used to achieve the set goal .
Plan your advertising budget
The purpose of the performance planner is to forecast the cost-revenue ratio, the number of conversions and the number of clicks. Other figures such as the conversion rate, the click prices or the differences between the existing and planned settings can also be analyzed. Most interesting for advertisers, however, is to be able to see how high the spend in Google Ads would have to be in order to generate the desired sales .
The tool is also characterized by its ease of use. You just have to think about what should be displayed in advance.
The time period and goals can also be flexibly adjusted to view a wide variety of data and results. Google tries to take into account seasonal conditions and market fluctuations to be as specific as possible. So it can be tested how the campaign could perform in high-turnover periods.
Recognize redeployment potential
The tool can also be relevant for advertisers who have different accounts in Google Ads and who advertise in different countries: it can identify reallocation potential between the accounts.
No automatic implementation
It is also important to mention that the forecast plan is not simply copied into the account: no automatic changes are made just because you are using the tool. The draft must first be downloaded and the changes then uploaded via the editor.
Cannot be used immediately
When using the performance planner, please note that the selected campaign must be active for at least 72 hours and have received at least three clicks and three conversions within the last week. It can not be used immediately after the campaign has started .
Not for all bid strategies, not for all campaign types
In addition, unfortunately not all bid strategies are compatible with the tool. The performance planner can only be used for search campaigns with the bid strategies “manual CPC”, “auto-optimized CPC”, “maximize clicks”, “target ROAS” and “target CPA”. The performance planner cannot be used for shopping campaigns.
Same currency required
As already mentioned, the tool offers the possibility of showing reallocation potential between the accounts. However, the same currency must also be used between the desired campaigns. The tool therefore does not offer any help if you want to compare search campaigns in a Swiss account (CHF) with search campaigns in a German account (€).
No valid prognosis
It should not be overlooked that the performance planner only serves to approximate or preview set goals and possible developments. A completely reliable forecast can therefore not be assumed.
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Overall, Google provides a free tool in the interface that allows advertisers to optimally distribute their expenses. Google has large amounts of data and can therefore provide comprehensive forecasts. Using the performance planner can provide food for thought and help plan the marketing budget for a wide variety of time periods.
It is also advantageous for search campaigns that do not use a smart bidding strategy and whose bid adjustments are always difficult to hit because they are dynamic. These can benefit from the performance planner’s forecast.
Nevertheless, the forecast plan should be critically scrutinized and not simply entered 1: 1 into the account. Ultimately, it is important to weigh up whether the planned changes are expedient or the planned budget is not set too high, even if it could generate more sales.