What does Performance Planner automatically do?
- Uses machine learning to target new demographics
- Sets your ad budget for maximum growth
- Forecasts how your current campaigns will perform in the future
- Recommends the perfect ad structure for your budget
The correct answer is:
✅ Forecasts how your current campaigns will perform in the future

Full Breakdown: Why correct and other incorrects?
✅ Correct Answer:
Performance Planner forecasts future performance based on your current and historical campaign data.
Why This Is Correct:
Performance Planner in Google Ads is a forecasting tool that analyzes historical performance, real-time auction data, and seasonal trends to predict how your campaigns might perform if you:
- Increase or decrease budgets
- Change bid strategies
- Modify campaign settings
Key Benefits:
- Predicts clicks, conversions, conversion value, and costs
- Shows expected performance if you tweak budgets
- Helps plan ad spend across weeks or months
Thus, it does not change your campaigns — it forecasts what could happen if you adjust variables.
Why the Other Options Are Incorrect:
Option | Why Incorrect |
---|---|
Uses machine learning to target new demographics | ❌ No — Targeting demographics is controlled via campaign settings, not by Performance Planner. |
Sets your ad budget for maximum growth | ❌ No — It suggests potential budget adjustments but doesn’t automatically set or enforce a budget. |
Recommends the perfect ad structure for your budget | ❌ No — It focuses on forecasting performance, not creating or restructuring your ad groups or campaigns. |
Real-Life Examples:
- Holiday Campaign Planning:
Before Black Friday, an eCommerce brand uses Performance Planner to see how a 20% budget increase might boost sales and reduce cost per conversion. - Seasonal Travel Ads:
A travel agency checks Performance Planner to forecast how advertising for “summer vacations” will perform if they double their ad spend in June.
Summary:
Feature | Correct? | Reason |
---|---|---|
✅ Forecasts future campaign performance | Yes | Analyzes data trends to predict results for adjustments |
❌ Targets new demographics | No | Controlled by advertiser settings, not forecasting tool |
❌ Sets your ad budget automatically | No | Provides budget recommendations, doesn’t set budgets |
❌ Recommends perfect ad structure | No | Focuses on forecasts, not ad design or restructuring |
Additional Resources:
- Google Ads Help: About Performance Planner
- Google Best Practices: Forecasting and Planning Your Budget
Conclusion:
Performance Planner empowers advertisers by providing data-driven forecasts based on their campaigns.
It doesn’t set budgets, change demographics, or rebuild your ads — it simply shows what could happen if you make strategic changes.
✅ Plan smarter. Spend smarter. Grow smarter.
FAQs:
Q: Is Performance Planner free to use?
A: Yes, it’s available inside your Google Ads account for eligible campaigns.
Q: Does Performance Planner make automatic changes to my campaigns?
A: No. It only provides forecasts and recommendations; you choose what to implement.
Q: How often should I use Performance Planner?
A: Ideally monthly or before major campaigns (holidays, product launches).
Now, if you are ready, then you take the Google Skillshop test for the Google Ads Search Exam. If you want more questions about the Google Ads Search Certification Exam, follow.