📍 Your One-Stop Guide To Google Performance Max Campaigns

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Read time: 4 mins

📆 Thursday, 21st Dec 2023

Hi, and welcome back to Growth Espresso - your one-stop destination for everything e-com.

In the last edition, we asked you guys on the topic you’d like us to focus on going forward and oh boy, you guys love your paid advertisement strategies.

So we’re starting a new series on paid advertising and the first topic on the line is the new kid on the PPC block - Google Performance Max Campaigns

Originally launched in 2021, this PPC campaign type has been met with praise and criticism among advertisers. But with AI and machine learning in full force Performance Max isn’t something to ignore anymore.

But how does it work? What are the benefits? And will it suit my brand? Answers to all of that are coming right up:

📍 Your One-Stop Guide To Google Performance Max Campaigns

1/ What is Google Performance Max?

Performance Max (PMax) is a unique, automated campaign type in Google Ads. It utilizes Google’s machine learning capabilities to drive more conversions across all of Google’s owned inventory. PMax ads can serve across Search, Display, YouTube, Discover, Gmail and Maps.

Ads are automatically created from advertiser inputs, similar to how responsive search and display ads are created. Like its name, PMax is driven by specified conversion goals at the campaign level.

2/ How does it work?

Performance Max uses machine learning models to drive more conversions by optimizing bids and placements in real-time. PMax uses Smart Bidding to achieve these goals.

Google’s AI technology looks across many factors when optimizing PMax campaigns, including audiences, creatives, budget optimization and more.

Simply put, for PMax to work, advertisers need to provide the best inputs for machine learning and AI technologies to work.

Let’s take a closer look at the inputs

Budget And Bidding

The first input is bidding-focused. You’ll choose what to focus on:

1. Conversions

2. Conversion value

Additionally, you can optimize the campaign to acquire new users

Location, Language, And Ad Scheduling

Pretty straightforward. Select the location, language, and scheduling (if applicable)

Automatically Created Assets

Within PMax campaign settings, there’s a section called “automatically created assets.” By default, these are checked on for text assets and final URL, which is important to review. If these remain selected, you’re allowing Google to create new text assets for ads that are based on your landing page, domain, and other ads.

Asset Groups

You need to select assets like Final URL, Images, Logos etc. Each asset group has a limit on the number of assets you can choose to add.

3/ Will it suit my business?

Certain industries are likely to benefit more from PMax than others.

A good gauge to determine if it is right for your brand relies on the following:

• How quickly sales or purchases are generated.

• Budget flexibility.

• Sufficient creative assets.

Typically, Performance Max works well for e-commerce brands, especially if product feeds are enabled within the campaign. If you’re a brand that has a relatively short sales or purchase cycle, PMax can help drive incremental conversions.

However, if your business is primarily lead generation or has a long sales cycle, this may not be the campaign type for you.

The second indicator of whether Performance Max is for you relates to budget. If the budget is strict or constantly limited, campaigns may not reach their full potential because of limited learning.

At a minimum, it’s recommended to spend at least $50-$100 per day for 30 days to determine results.

Thirdly, if your brand has a sufficient supply of new creatives, PMax is worth a try.