What should advertisers utilize to identify potential causes of performance fluctuations?

The Explanations feature is a valuable tool for advertisers seeking to identify potential causes of performance fluctuations. This feature utilizes machine learning algorithms to analyze campaign data and determine what factors may have influenced changes in performance metrics, such as clicks, impressions, and conversions. By offering insights into specific elements like shifts in competition, changes in bidding strategies, or alterations in audience behavior, the Explanations feature helps advertisers diagnose issues more effectively and make informed adjustments to their campaigns.

In contrast, while the Keyword Planner is beneficial for keyword research and planning, it does not specifically address performance fluctuations. Budget allocation reports can indicate how funds are being spent but might not provide insights into performance changes. Negative keyword lists help refine targeting by preventing ads from showing on irrelevant searches but do not directly relate to analyzing performance data. Thus, the Explanations feature stands out as the most appropriate choice for understanding the underlying causes of fluctuations in advertising performance.