Understand how to assess performance using Google Ads Explanations

Google’s new Explanations feature helps identify causes for shifts in Clicks, Impressions, Cost, and Conversions within Search Campaigns. This new tool provides qualitative reasoning behind why changes in Campaign and Ad Group level data occurred.

Before starting with Explanations, consider the following:

1. At this time, Explanations are only available for Search Campaigns that use manual or enhanced CPC bidding strategies

2. Explanations can compare two equal time frames in the past 90 days

3. Explanations only show if there are significant performance changes

After analyzing all the factors, Explanations will give a comprehensive report detailing all the factors that have contributed to specific changes.

Google Has Some Explaining To Do

While looking in the interface, any data points that are listed in blue and have a dotted line underneath will have an Explanation. To view this explanation, hover over the blue highlighted data and click See Explanations in the pop-up box.

Note: The time frame doesn’t need to be set to compare for Explanations to highlight significant performance changes.

Explanations will then check the following factors to determine what is causing the change: 

  • Search interest
  • Auction activity
  • Status changes
  • Campaign settings
  • Budget
  • Bid adjustments
  • Negative keywords
  • Prominence metrics
  • Targeting changes

After analyzing all the factors, Explanations will give a comprehensive report detailing all the factors that have contributed to the change. The most useful details that we have found in these reports are bid adjustments that drove changes and competition factors that detail out the exact domain that is causing an impact.

At the end of the report, Google provides a breakout of all the factors that were reviewed while detailing which factors likely played a role in the performance change and which ones did not.

As an advertiser, this new tool allows for us to identify performance changes and the factors that influenced them significantly faster than in the past. Once again, Google has found a way to save us time, enhance our ability to manage accounts, and provide actionable insights to our clients. 

If you are looking for help with Google Ads Explanations or managing your Google Ads account, we are always available to assist. Accelerated Digital Media partners with businesses to drive long-term, sustainable growth through comprehensive digital marketing strategies.