We live in a time where digital marketing is constantly evolving.
Anyone using Google Ads should know that the first and most crucial step to achieving success is planning.
You potentially already have a yearly budget outlined. But you should revisit and plan your Google Ads budget in advance on a monthly basis to help maximise returns.
The benefits of planning your budget
- You can understand the future potential spend of the Google Ads campaigns you are currently running to help to make better budget based decisions
- You can take advantage of seasonality to capture additional opportunities
- Planning your budget lets you set optimal bids and budgets across your campaigns to help make sure that ROI performance is maximised
- You are able to find new opportunities to grow your sales volumes with Google Ads
What is the Google Ads Performance Planner?
Google Ads Performance Planner is a forecasting tool that uses machine learning to reveal the possibilities for your Google Ads campaign. By using this tool, you are able to explore forecasts for your upcoming monthly, quarterly and annual budgets for current campaigns as well as helping to improve your ROI.
How does it work?
The Planner starts by generating a forecast of what your campaigns will achieve for a future period if you were to make no changes to your current campaigns.
Then using Google’s seasonality insights and data, Performance Planner will predict the results if you use optimal bids and average daily budgets across your campaigns to maximise the number of conversions for any future spend scenario.
When you decide to choose a spend point, Performance Planner will improve your ROI by reallocating spend between campaigns through adjusting bids and average daily budgets.
How does it forecast campaign performance?
Performance planner uses a combination of account history and machine learning to generate forecasts.
When using Google Ads tools, the forecasts must meet a distinct level of accuracy and as a result of this, the confidence interval of these forecasts will more than likely be a lot greater than that of other forecast tools that are available to use.
Why choose Google Ads Performance Planner over traditional methods?
Performance Planner highlights growth opportunities for your Google Ad campaigns.
Having the optimal budgets and bids is absolutely crucial to making the most of your budget and growing your business online using Google Ads.
The forecasts you can generate are more accurate than using traditional forecasting methods because they are based on Google data and the historical performance of your accounts which are then validated using machine learning.
This way, you are more likely to hit KPIs than using other methods.
Don’t forget…
You need to create separate plans for each marketing objective so make sure you don’t add all brand and generic campaigns into the same plan.
Remember, different campaigns have different marketing objectives and incremental conversions are achieved by creating separate plans for each one.
Also, Performance Planner will, by default, forecast conversions based on what’s included in the conversions column in the Google Ads front end. So to allocate budgets that drive incremental conversions, be sure to set bids and budgets using non-last click conversions in your conversions column.
Lastly, since forecasts improve when plans are generated closer to the actual run date, make sure you are regularly checking back on your plan before implementing it. That way you can help to make sure the accuracy of the data is on point.
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