What is Performance Max and is it Worth the Hype?

Performance Max Campaigns for Google Ads

Google offers dozens of campaign types for paid advertisers. With AI growing in popularity, it’s no surprise that the latest campaign type taps into this technology.

Performance Max campaigns launched in 2021. Since then, Google has improved its algorithm and used machine learning to drive even better results.

In 2023, advertisers using Performance Max reported an average 18% boost in conversions, all while keeping their cost-per-action steady. That’s impressive – even by Google Ads’ standards.

Using advanced AI and machine learning, Performance Max offers a new way to reach your audience. Sounds like a good deal, right? But with excitement and scepticism surrounding it, is Performance Max truly worth the hype?

What is Performance Max?

Performance Max is a campaign type for Google Ads. It’s the only campaign type that allows us to advertise across all of Google’s channels from one campaign. Performance Max can deliver ads across all Google’s properties, including:

• Search Network
• Shopping
• YouTube
• Display Network
• Gmail
• Discover
• Maps

PMax automatically creates compelling ad combinations based on your campaign goals, audience signals, messaging and budget.

This means you don’t need to create a separate campaign for each channel. That can significantly reduce the amount of time it takes to create content and manage your campaigns. Combined with the boost to conversions, it can make PMax an excellent option choice for your next ad campaign.

How is PMax Different From Other Google Campaigns?

Performance Max campaigns have many distinct features that differentiate them from traditional campaigns. Key differences include:

Traditional Campaigns	Performance Max
Single-channel approach (ads can only be served to one Google property at a time)	Multi-channel approach (ads can be served to any of Google’s properties)
Manual targeting	Automated targeting
Some control over ad placement	Limited control over ad placement
Extensive insights	Limited insights
Extensive management required	Limited management required
Full control over creative	Limited control over creative

As you can see, PMax campaigns offer lots of options for automation, but limited control over your ads.

Google’s supercomputers handle most of the process, including creating content, targeting your audiences and placing ads. While you have some control, you typically have to trust Google to deliver the results you’re looking for.

This makes PMax campaigns good for beginners and specific types of campaigns. Experienced campaign managers may prefer traditional campaign types with manual targeting.

Advantages of Performance Max

Performance Max campaigns can transform the way you handle your Google Ads. This campaign type has several major advantages:

Increased Reach

With the ability to display your ads across multiple channels, PMax can significantly increase your reach and brand awareness while also driving conversions.

By tapping into your audiences across Search, Display, Youtube, Discover, Gmail and Maps, PMax helps to create multiple touchpoints. This is useful if you need to reach potential customers at all stages of their journey.

Whether they’re passively browsing or actively searching, multi-channel exposure helps to nurture users from awareness through to conversion.

Advanced targeting capabilities

PMax comes with a number of targeting options, including:

• Audience Signals
• In-Market Audiences
• Affinity Audiences
• Custom Audiences based on first party data

Each of these targeting options is supported by Google’s machine learning capabilities to take the legwork out of optimising your campaigns.

By integrating multiple targeting methods such as demographic, interest, behaviour and intent signals, PMax ensures your ad reaches the people who are most likely to engage with your brand.

This significantly increases the likelihood of conversion, improves efficiency and return on investment.

Increased ROI

Performance Max has the potential to increase your return on investment.

It does this by streamlining campaign management and uses artificial intelligence to improve targeting and budget allocation. The incorporation of AI allows Google to learn from performance data in real time and adjust budgets to reach the most engaged users.

For businesses focused on maximising ROI, this is an efficient and data-driven approach that can scale your conversions while maintaining profit. For e-commerce brands, you can optimise your PMax campaign for ROI by selecting a ‘Conversions Value’ goal.

Disadvantages of Performance Max

While adding PMax to your Google Ads strategy offers plenty of benefits, it also comes with its own set of challenges:

Lack of Control

Extensive automation reduces your control over most Performance Max campaign elements. Automated channel and budget optimisation means there is limited control over where ads appear and how much is invested in each channel.

For instance, if your ads strategy focuses heavily on video content and YouTube ads, you may find that a dedicated YouTube campaign provides better returns than PMax.

Performance Max also doesn’t offer the option to change bids for individual keywords. As a result, you may find yourself with less ability to fine-tune your campaign.

Limited Visibility

The extensive use of AI limits your visibility into performance data. This makes it difficult to identify performing keywords, prioritise successful placements and understand audience performance.

Without access to these insights, it can be hard to optimise your strategy and figure out what is or isn’t working.

The effect is a reduction in transparency and control, with no means to specifically invest in high performing elements or decrease your investment in under-performing elements.

Cannibalisation

For those with existing campaigns, PMax has the ability to compete with other ad campaigns. This can drive up the auction prices, significantly impacting campaign performance.

Cannibalisation is a major issue for branded campaigns, as PMax typically bids on brand terms first, since they are the most relevant and highest converting terms. Because of this cannibalisation, it can be difficult to determine the true value of Performance Max for your business.

Is Performance Max Right for Your Business?

Now that you’re familiar with Performance Max, it’s time to figure out if this campaign type is right for you. The first step is to define your business goals and see if PMax matches your advertising needs.

Performance Max delivers the best results when you have a steady conversion volume and substantial marketing budgets. Therefore, this campaign type would work best for those with:

• Clear conversion objectives
• Multiple product categories
• Established remarketing lists
• Consistent website visitors

Paired with well organised asset groups and ongoing campaign optimisations, PMax can set you up for success.

A key consideration before implementing PMax is the time required for machine learning. PMax requires a minimum of 6 weeks to collect enough data to be able to optimise its performance effectively. During this time, the system gathers insights to fine tune targeting, placements and audiences.

To make the most of Performance Max, ensure that you have an established conversion tracking system and strong historical data within the account:

Conversion Tracking

A well established conversion tracking system is key to measuring campaign success.

For those who have a good system in place, you can expect to get more out of PMax because it can use conversion data to prioritise users who are most likely to convert or complete another desired action.

Historical Data

Existing performance data is key to helping the AI make better decisions. Having a strong foundation also enables the AI to make decisions faster, reducing the time it takes to see results.

Historical account data can be leveraged further, by directly feeding it into PMax. For example, if you know what assets and audiences work best for your brand, feeding that into the campaign setup can give PMax a strong starting point, reducing testing and error.

Is Performance Max Truly Worth the Hype?

Performance Max can be a powerful tool when it comes to online advertising. Whether it’s worth the hype depends on your specific goals and investment.

This campaign type is a game changer for those looking to enhance their reach, increase ROI and streamline management. The tradeoff is a lack of control and visibility that can be challenging for experienced ads managers.

For Performance Max to be successful, it needs strategic planning, stable investment and realistic goals. The team at Gordon Digital knows all about these things, and we can make Performance Max work for your digital strategy.

At Gordon, we specialise in crafting tailored paid ads strategies to fit your business. Whether you’re looking to increase efficiency and ROI with tools like Performance Max, or need a detailed strategy to capture the right audience, we can help.

If you’re ready to take your Google Ads to the next level, contact the team at Gordon Digital!

Image Source: All images used in this article are from Google.