How Performance Planner Helps You

January 18, 2023

Posted by Written By Matt Culloty

Answer: By optimizing your ad budget for maximum growth

If you are studying for the Google analytics exam, an example of a question you might see would be:

How can performance planner serve your business?

A. By finding areas of your total budget that could contribute to marketing

B. By determining which of Google’s ads are most appropriate for your brand

C. By teaching your employees the fundamentals of personal budgeting

D. By optimizing your ad budget for maximum growth

The correct answer is D, “By optimizing your ad budget for maximum growth”

Explanation:

Performance Planner allows you to set your Google Ads budget in advance. Understanding the future spend and potential ROI (Return On Investment) of your Google Search campaigns allows you to more effectively plan your search campaigns and optimize your ads for maximum growth.

For example, imagine you are a shoe retailer running Google Ads. You choose the keyword “Red New Balance Running Shoes”, the cost per click is $5.00 and the shoe you are selling retails for $70.

Assuming a 10% conversion rate on your site, every 100 clicks yield 10 sales meaning you spend $500 to make $700 in revenue. This means the ROAS (Return on Ad Spend) is 28%.

Knowing this, you can effectively plan how much you want to spend on Google Ads and what your estimated return on ad spend will be.

If you are interested in learning more about Google Analytics or are studying for an upcoming Google Analytics exam, stick around as we delve into the most commonly asked questions about GA preparedness. Additionally, check out our recent post on matching the correct auto-bidding strategy to the related campaign goal and which targeting option is best for brand awareness campaigns.