Historical data plays a crucial role in Google Performance Planner for several reasons:
Helps Make Accurate Predictions: Historical data serves as the foundation for machine learning algorithms to understand past performance patterns and predict future campaign performance. The algorithms can then identify relevant features, train predictive models, and generate accurate predictions to optimize campaign strategies effectively.
Customizes Your Forecasts: Historical data allows Google Performance Planner to analyze factors like target audience behavior, ad creative performance, and bidding strategy effectiveness. By understanding your account's unique performance characteristics, the tool can provide more tailored and accurate forecasts to help optimize your Google Ads campaigns.
Benchmarks Performance: Historical data enables Google Performance Planner to compare your campaign performance to industry benchmarks and trends. This comparison helps set the context for your forecasts and allows you to set realistic goals based on how your campaigns have performed relative to industry standards.
Analyzes Scenarios: By analyzing historical data, Performance Planner can simulate different scenarios and predict how changes in budget, targeting, bidding, or other campaign parameters might impact performance. This allows advertisers to explore various what-if scenarios and make informed decisions about their campaign strategies before implementing changes.