Launch Performance Max Campaigns on Google Ads

Introduction to Performance Max Campaigns

What are Performance Max Campaigns?

Performance Max is a goal-based campaign type that allows advertisers to access all of their Google Ads inventory from a single campaign. It's designed to complement keyword-based Search campaigns to help you find more converting customers across all of Google's channels like YouTube, Display, Search, Discover, Gmail, and Maps.

According to Google, Performance Max campaigns are designed to deliver "maximum conversion value or revenue with greater automation" by using smart bidding and machine learning to optimize both targeting and delivery.

How Performance Max Campaigns Work

Performance Max uses machine learning to optimize your campaign based on specified conversion goals across Google's full range of advertising channels and inventory. Here's how it works:

1. You provide inputs like budget, creative assets, conversion goals, and geo-targets.
2. Google's AI systems test different combinations of assets and targeting to find the best performing mix.
3. The system automatically adjusts bids and optimizes ad placements to maximize conversion value or revenue within your specified budget.
4. Transparent reporting shows how your ads are performing across different channels.

For example, let's say you set a target CPA of $25 for your Performance Max campaign. Google's bidding algorithm will aim to get you as many conversions as possible at or below that $25 per acquisition cost, optimizing ad delivery and placements across channels to hit that goal.

When to Use Performance Max Campaigns

Performance Max can be a good fit for advertisers who:

• Want to maximize conversion value or revenue without the need to actively manage individual campaigns for each channel.
• Have specific advertising goals but lack the time or resources to create separate campaigns for Google's various advertising channels and placements.
• Want to expand their reach to new customers beyond what Search campaigns can provide.

However, it's important to note that Performance Max may not be ideal for every advertiser. Because it automates targeting and delivery across all channels, advertisers have less control over where their ads appear. If your brand has specific channel requirements or exclusions, Performance Max may not provide the level of control you need.

In the next section, we'll walk through how to set up a Performance Max campaign step-by-step.

Step-by-Step Guide to Creating a Performance Max Campaign

Step 1: Create Campaign and Choose Goal

To get started, navigate to your Google Ads account and click on the "Campaigns" tab. Then, select the "+" button to create a new campaign.

In the "New Campaign" window, choose your campaign objective, such as "Sales," "Leads," or "Website traffic." This goal will guide Google's machine learning algorithms to optimize your campaign for the desired outcome.

Next, select "Performance Max" as your campaign type. This option leverages Google's automation capabilities to maximize performance across all Google Ads channels and inventory.

If you have connected your Merchant Center to Google Ads to promote your products, you can select here the account.

Note: Performance Max works best for advertisers selling products, rather than services. This is one the things to take into account before choosing to launch a PMax campaign.

Step 2: Set Bidding Preferences

After selecting your campaign goal, you'll need to configure your bidding preferences. Performance Max campaigns use automated bidding, meaning Google will optimize your bids in real-time to achieve your specified goal.

Depending on your campaign objective, you can choose from various bidding strategies, such as:

• Maximize conversions
• Maximize conversion value
• Target CPA (cost per acquisition)
• Target ROAS (return on ad spend)

Read our guides for each Bidding strategies if you wish to better understand their goals, and which one is the best for you.

For example, if your goal is to drive sales while maintaining a specific return on investment, you might select the "Target ROAS" strategy and set your desired ROAS percentage.

This step is also where you can choose if you want to target only new customers.

If you're selling products, we recommend to start without it if this is your first campaign. If you already have PMax campaigns running you can, seconding the goal of your campaign, choose to activate it. If you're selling products, it will depend on the evolution of the conversion value brought by your returning visitors.

If you're selling a service, always activate it. This is the kind of little things that can loose you lots of money.

Step 3: Configure Campaign Settings

In this step, you'll define your campaign's settings, including:

• Locations: Select the geographic areas where you want your ads to appear.
• Languages: Specify the languages your audience speaks.
• Budget: Set your daily campaign budget.
• Campaign dates: Choose start and end dates, or set the campaign to run continuously.
• Brand exclusion: Select the brands you want to exclude yourself from searches, including yours.

About Brand Exclusion, this is another little setting that can loose you a LOT of money if not properly configured.

In Performance Max campaigns, Google has the upper hand on where and when your ads will show. This include your own brand. The goal of Google is a) to spend your money, b) bring you conversions at all costs so you will continue bringing up the money.

Brand keywords (when someone types your brand name on Google) has the highest conversion rate. This means, if left untouched, that Google will basically turn your Performance Max into a brand campaign. Not a good bet if your wish to expand your customers' base and explore new markets.

So always add you brand to the exclusion list:

Step 4: Set Up Asset Groups and Upload Assets

Performance Max campaigns use asset groups to create and manage your ad content. An asset group contains a collection of images, videos, logos, headlines, descriptions, and call-to-action phrases that Google combines to create responsive ads tailored to your audience.

To set up your asset group:

1. Click "Create asset group" and provide a name.
2. Upload your visual assets (images, logos, and videos) in the recommended sizes and formats.
3. Add multiple headlines, descriptions, and call-to-action phrases to give Google's machine learning algorithms more options for creating effective ad combinations.
4. Preview your ads to ensure they appear as intended.
5. Signals and Audiences: enter the signals you have identified as relevant from converting leads, and the audiences you have created in your Google Ads account.

You can create multiple asset groups within a single Performance Max campaign to test different creative approaches or target specific signal and audience segments.

Step 5: Set Campaign Budget

Determine your campaign's daily budget based on your advertising goals and overall marketing budget. Performance Max campaigns allow you to set a daily average budget, which gives Google the flexibility to adjust your spending based on daily fluctuations in search traffic and ad performance.

For instance, if you set a daily budget of $100, Google may spend slightly more on high-performing days and less on others, while ensuring your monthly spend remains within your budget (i.e., approximately $3,000 per month for a 30-day month).

Step 6: Review and Publish Campaign

Before launching your Performance Max campaign, take the time to review all your settings, targeting preferences, and creative assets. Ensure that your ad content aligns with your brand guidelines and campaign objectives.

Once you've confirmed that everything is set up correctly, click "Publish" to activate your campaign. Google will then start serving your ads across its various channels, optimizing performance based on your specified goals and budget.

After launch, monitor your campaign's performance regularly using Google Ads' reporting tools. Analyze key metrics such as impressions, clicks, conversions, and cost-per-conversion to gauge your campaign's success and identify areas for improvement. Use these insights to refine your targeting, adjust your budget, and optimize your creative assets for better results over time.

Pros and Cons of Performance Max Campaigns

Performance Max campaigns are a powerful tool in Google Ads, designed to simplify campaign management while delivering strong results. However, they come with both advantages and limitations that advertisers should carefully consider before diving in.

Pros of Performance Max Campaigns

• Easier for Novice Users: Performance Max simplifies the campaign setup process, making it more accessible to advertisers who are new to Google Ads. By consolidating multiple campaign types into one interface, it reduces the learning curve and time required to get started.
• Allows Focus on Strategic Drivers: With automated bidding and targeting, Performance Max allows advertisers to focus on high-level strategy rather than granular optimizations. This can be particularly beneficial for small businesses or teams with limited resources.
• Can Provide Impressive Results: When set up correctly with clear goals and quality assets, Performance Max campaigns can deliver strong performance across multiple channels. Google's machine learning algorithms can identify the most effective combinations of creative, placement, and targeting to drive conversions and value.

For example, a retail advertiser could launch a Performance Max campaign with the goal of driving online sales. By providing high-quality product images, descriptions, and audience signals, they could potentially see a significant increase in revenue without having to manually manage bids and placements across individual channels.

Cons of Performance Max Campaigns

• Requires Clear Goals: To be effective, Performance Max campaigns must be set up with well-defined conversion goals and values. Without this, the algorithms may optimize towards the wrong actions or struggle to deliver efficient results. Advertisers need to have a solid understanding of their KPIs and customer journey.
• Provides Less Control and Visibility: The automation in Performance Max means relinquishing some control over where ads are shown and how bids are set. While this can be liberating, it can also feel limiting for advertisers who are used to having full visibility and control. The reporting in Performance Max is also less granular than other campaign types.
• Still Needs Human Oversight: Although Performance Max automates many aspects of campaign management, it still requires human input and oversight. Advertisers need to regularly review performance, provide high-quality assets, and make strategic adjustments. Automation is not a set-it-and-forget-it solution.

As an example, consider a B2B advertiser looking to drive leads for a high-ticket product. While Performance Max could potentially deliver a high volume of leads, the advertiser would need to closely monitor lead quality and cost per acquisition to ensure they are reaching the right audience. They may need to adjust their creative assets or audience signals if lead quality is poor.

Polarized Perspectives on Automation

The increasing automation in Google Ads, exemplified by Performance Max, has led to polarized perspectives among advertisers. Some embrace the machine learning capabilities and see it as the future of advertising, while others are wary of losing control and insights.

Ultimately, the suitability of Performance Max depends on an advertiser's unique goals, resources, and comfort level with automation. As WordStream summarizes:

"Performance Max is a great option for advertisers who are looking to simplify their campaigns and take advantage of automation. However, it's not right for everyone, and some advertisers may prefer the control and transparency of other campaign types."

Advertisers should carefully evaluate their priorities and test Performance Max alongside other strategies to determine the right approach for their business. As with any Google Ads campaign, regular monitoring, testing, and optimization are essential for long-term success.