How Does Google Performance Planner Work & Can Help You Achieve Sales Growth?

Managing an advertising campaign is not easy.

You have a client.

He or she has an expectation.

As a marketer, you have to deliver no matter what. Imagine having a tool that paints you the picture of the future with relative accuracy.

How cool is that?

Well, Google’s Performance Planner is designed to do the forecasting with accuracy. The tool made its debut in the market in 2019.

Google’s Support Page says the tool is capable of driving sales up by 43%. There’s a tool that guarantees a substantial growth rate if leveraged optimally. PPC managers can drive insane sales by leveraging the Performance Planner’s forecasting function maximally.

Forecasting is just a scratch at the surface of this critical topic. As we proceed, we’ll cover other revelations in great detail.

Do you want to drive your sales to new heights this 2021?

Commit yourself to read until the end to discover more pro-tips about Google Ads Performance Planner.

Performance Planner and Sales Growth

What is a Performance Planner tool?

Google’s tools help the marketers with planning ad expenditure. The application focuses on driving more conversions by providing actionable tips on your marketing campaigns.

“Let’s assume you have a budget of $27,000 to manage 30 campaigns monthly. The planner will consider various factors, such as seasonality, to distribute your investment optimally to minimize CPA and maximize conversions.

Besides, you will access the projected outcomes after the implementation of the recommendations.

The tool makes predictions based on adjustment of attributes, such as ad spends levels and cost-per-action (CPA). You need to click on different levels of ad spend for corresponding conversion changes to appear. You can see how a $10 click-per-action value influences conversion compared to a $19 CPA.

Let’s see Google Ads Performance Planner’s essential functions and their impact on your sales.

What are the Performance planner’s critical functions to search engine marketers (SEM)?

  1. Keyword Level Estimation

Google Ad Performance Planner allows you to remove or add keywords and evaluate their impact.

Just click on the Things to Try tab, and it will direct you to a page with keyword recommendations.

Add those key phrases to your PPC campaign to establish their impact on sales turnover.

  2. Ad Budget Approximation and Allocation

What happens after adding an extra, let’s say $1,500, to your campaign budget?

The question above is one of the most commonly addressed FAQs on Google’s Help Page. The tool will help you establish the optimum budget spend across your ad groups and campaigns.

If you decide to trim your budget by $500, the app will identify the best formula to allocate your money without adversely affecting performance.

The scenario above applies if you decide to increase your ad spend levels.

  3. Seasonality Trend

Many businesses have a cycle characterized by highs and lows. A sales boom represents a “high” period. Contrastingly, the “low” part of the cycle implies a drop in sales.

The tool takes into account the seasonality cycle when projecting forecasting results.

  4. Forecasting

Forecasting is a very crucial function for your businesses. Forecasting based on inaccurate data is likely to spell doom to your campaign.

When you start an ad campaign, you’re provided with 3 primary metrics, namely:

1. Ad Spend
2. Cost Per Action
3. Conversion

Adjust either of the above key performance indicators (KPIs), and the tool will estimate your campaign’s performance. Changes in performance metrics are reflected in real-time. Well-executed forecasting is positively correlated to growing sales.

I bet that’s why Google promises PPC managers an astronomical 43% sales growth.

Why is Google Ads Performance Planner’s forecasting function important for sales growth?

In today’s unpredictable landscape, many digital marketers would murder to have predictable sales revenue. The majority are still struggling with how to predict sales revenue for the next financial year. Most online businesses are depending on forecasting to fuel their growth strategy now more than ever.

Forecasting has tremendous benefits to any business organization.

However, coming up with an accurate sales forecast is still a stumbling block to many advertisers. Online businesses that miss their forecasting regularly are affected negatively in terms of sales revenues.

Forecasting is not a hit or miss game.

Having a clear map of the destination is a prerequisite for the success of any undertaking.

Operating blindly in PPC is not recommended.

Why does accurate sales forecasting matter to digital marketers?

1. Informed Decision-Making

Accurate forecasting helps digital businesses make data-driven decisions. More so, it helps in risk management, budgeting, and planning functions.

  2. Optimal Budget Allocation

It helps companies to allocate resources optimally for long term growth in sales revenue.

  3. Sales Goals

Sales forecasting helps sales reps to attain their goals by providing early negative signals in the sales funnel for immediate correction.

  4. Revenue and Cost Estimation

Google Ads Performance Planner’s forecasting function helps marketers to estimate the costs and revenue of their campaigns.

What questions should you ask before forecasting?

  1. Changes to the Market

By how much will the current market grow?

Who are the competitors, and how do they impact the sales growth?

The questions above help in addressing the dynamic macro-changes, potentially harmful to your e-business.

  2. Customer Behavior

Online businesses need to have a complete picture of the number of customers lost and gained each financial year. The aforementioned is essential, especially during the boom (peak periods) and troughs (fluctuations).

  3. Resources

Marketers need to be aware of the level of ad spend required for substantial sales growth and potential constraints. Fortunately, Google Ads Performance Planner is here for their rescue.

Wrap Up

You agree that driving substantial sales revenue is a thorn in the side of almost every PPC manager. Google has unveiled an artificial intelligence-driven tool to help digital marketers with data-driven optimization of their campaigns.

One of the most underrated functions of the tool is forecasting, capable of making or breaking your campaign.

Imagine being able to predict your online business’s future performance based on the adjustment of specific variables.

Google Ads managers can drive insane sales by leveraging the Performance Planner’s forecasting function maximally. Forecasting is still under-used despite the emergence of cutting-edge technologies, such as big data.

Do you want to drive your sales up by 43%?

Leverage the application’s forecasting tool maximally to lower your CPA and increase your sales substantially in the long-term.