What do performance estimates based on historical data help advertisers with?

Performance estimates based on historical data are essential for predicting potential impacts of changes on performance. By analyzing past performance data, advertisers can understand how specific adjustments, such as changes in budget, ad creatives, or targeting parameters, might affect future outcomes. This predictive capability allows advertisers to make more informed decisions when optimizing their campaigns, ensuring they can better allocate resources and implement strategies that will likely lead to improved performance metrics.

This approach is critical as it leverages concrete data to forecast results, thereby reducing uncertainty in campaign management. Advertisers can identify trends and correlations within the historical data that indicate how similar adjustments have influenced results in the past, therefore allowing them to anticipate future performance with a degree of confidence.

While determining the most popular products, finding new audience segments, and setting up automated bidding strategies are also important aspects of advertising, they are not directly informed by performance estimates based on historical data in the same way that predictive analysis is.