The Power of Explanations in Google Ads

Ever wonder why your Google Ads campaign performance suddenly changes? One day, conversions are soaring, and the next, they’ve dipped with no clear reason. Enter Explanations—a powerful feature in Google Ads that helps you quickly and easily understand these fluctuations.

What Are Explanations?

Explanations are insights provided directly within your Google Ads account that pinpoint the causes behind significant changes in performance metrics. Whether it’s a drop in clicks, a sudden spike in costs, or a shift in conversions, Explanations help you uncover the "why" behind these changes, saving you from the time-consuming task of sifting through multiple reports and data sources.

But Explanations do more than just diagnose issues—they often come paired with Recommendations. While Explanations tell you why your ad performance fluctuated, Recommendations guide you on how to optimize your campaigns moving forward. It’s like having a built-in consultant, providing both the problem and the solution.

Where Can You Use Explanations?

Explanations are currently available for:

• Search campaigns using manual CPC, enhanced CPC, target CPA, maximize conversions, maximize clicks, target ROAS, and other popular bidding strategies.
• App campaigns using target CPA.
• Performance Max campaigns.

These explanations cover a wide range of factors that could be impacting your performance, such as bidding strategies, budget allocations, conversion settings, and even competitive auction dynamics.

Benefits of Using Explanations

1. Save Time: No need to cross-reference various reports or guess what might have gone wrong. Explanations provide a clear, concise analysis of your performance changes with just a few clicks.
2. All in One Place: Explanations consolidate information, making it easier to diagnose performance issues without needing to switch between tools or reports. Simply compare two date ranges, and if there’s a significant change, an explanation will be provided.
3. Diagnose Issues Accurately: Explanations give you a more comprehensive view of your campaigns, helping you pinpoint the exact causes of performance shifts—whether it’s a bid adjustment, a change in budget, or a new competitor in your auction.
4. Receive Tailored Recommendations: Alongside Explanations, Google Ads provides Recommendations specifically designed to address the issues identified, helping you take actionable steps to improve your campaign’s performance.

Types of Explanations

Explanations can help you understand various aspects of your campaign performance, including:

• Bidding Explanations: See how changes to your bids, bid strategies, or bid modifiers may have affected where and how often your ads were shown.
• Budget Explanations: Understand how budget changes, shared budget allocations, or automated optimizations influenced your ad visibility and performance.
• Conversion Explanations: Discover how adjustments to your conversion settings or delays in reporting conversions could have impacted your metrics.
• Asset and Ad Group Explanations: Learn how changes to your assets (like images or videos in Performance Max campaigns) or shifts in ad group performance may have influenced overall results.

How to Access Explanations in Your Account

Accessing Explanations is simple. Here’s how:

1. From Your Campaign or Ad Group Page:
2. From Your Bid Strategy Report:
3. From Performance Graphs:

Custom Date Range Comparisons

You can also compare two custom date ranges to see explanations:

1. Click the date range selector in the upper right corner of your screen.
2. Toggle “Compare” and select “Previous period.”
3. Choose your time periods and apply the changes. Explanations for significant differences will be highlighted in blue.

Why You Might Not See Explanations

There are a few reasons why Explanations might not be available:

• The performance metric isn’t directly aligned with your campaign goals.
• The change in performance isn’t significant enough to trigger an explanation.
• The date range you’re analyzing includes today or spans beyond the last 90 days.

Final Thoughts

Explanations in Google Ads are a game-changer for anyone looking to optimize their ad performance with precision and efficiency. By understanding not just what changed but why it changed, you can make more informed decisions and improve your campaigns more effectively. So, next time you see an unexpected shift in your metrics, don’t just wonder—explore the Explanations feature and take control of your campaign’s success.