Why Performance Max Can Lift Conversions and ROI (When It’s Set Up Correctly)
Performance Max is a goal-based campaign type built to run across the full Google Ads inventory from one campaign. Instead of you hand-picking each placement and managing separate campaign types channel by channel, you define the business outcome you care about (leads, sales, store goals) and the system dynamically allocates bids and budget in real time to the auctions most likely to hit that goal.
In practice, Performance Max boosts campaigns in two big ways. First, it expands reach beyond what most teams can reasonably manage with siloed Search, Display, video, and Shopping setups—especially when demand shifts quickly. Second, it optimizes as one system across channels, so it can pursue the most cost-efficient conversion opportunities moment by moment rather than being “stuck” spending budget in a single channel because that’s how the account is structured.
It’s also designed to complement keyword-based Search campaigns rather than replace them. If a user’s query is identical to an exact match keyword in your Search campaign, Search is prioritized. That’s why the strongest accounts use Performance Max as the scalable “net” for incremental conversions, while Search stays the precision tool for the most controllable, highest-intent queries.
How Performance Max actually finds customers without keywords
Performance Max uses “keywordless targeting,” which means it relies on signals from your campaign settings, conversion goals, creative assets, landing pages, and (when applicable) product data feeds. You’re not building ad groups around keyword lists; you’re supplying high-quality inputs and guardrails so the system can match intent to the best ad and landing page combination.
That sounds abstract, so here’s the simplest way to think about it: your job shifts from “keyword sculpting” to “signal engineering.” When you improve the signals (goals, values, audiences, creative variety, page selection, and exclusions), Performance Max gets smarter faster and wastes less spend.
The Levers That Make Performance Max Boost Results
1) Smarter bidding because it’s anchored to conversion goals and values
Performance Max runs on Smart Bidding to optimize for either conversion volume or conversion value. If you’re serious about ROI, the fastest path to improvement is usually not a new trick inside the campaign—it’s tightening the goal setup so the system optimizes toward outcomes that reflect real business value.
For ecommerce, that typically means purchase value is accurate and consistent, and you’re bidding to maximize conversion value (optionally with a target ROAS). For lead gen, it means you’re not feeding the algorithm low-intent “micro-conversions” as Primary goals unless they truly represent value (or are at least strongly correlated with revenue). When your goals are noisy, Performance Max gets noisy.
2) Stronger creative coverage across channels (including automation you can control)
Performance Max builds ads from your assets and can also generate additional assets through text customization. With Final URL expansion enabled (on by default in many setups), it can select a more relevant landing page and generate dynamic headlines and descriptions that match that page’s content. This is one of the biggest reasons Performance Max can scale: it’s constantly testing combinations and matching them to intent.
The boost comes when you supply enough variety that the system can do its job. In 2026, you should assume you need a real creative mix: multiple angles, multiple image types, and at least one solid video asset. If you don’t provide video, the system can generate one, but in my experience, advertiser-provided video aligned to the offer and audience almost always gives you better control over message quality and brand feel.
3) Audience signals that accelerate learning (without limiting reach)
Audience signals are optional, but they’re one of the simplest ways to reduce “ramp-up time,” especially for new accounts, new offers, niche products, or fresh landing pages. Importantly, audience signals don’t hard-restrict delivery the way traditional targeting did in older campaign types; they act as guidance, and the system can still go beyond them when it predicts someone else is likely to convert.
The most effective audience signals are usually first-party lists (past purchasers, lead lists, high-LTV segments), followed by custom segments built from the actual language customers use when searching. If your team struggles to communicate “who this is for,” audience signals are where you encode that knowledge.
4) Search Themes: steer Search demand without turning Performance Max into “keyword Search”
Search themes let you provide words and phrases that describe what your customers are likely to search for. This is especially powerful for niche categories, new product launches, businesses with jargon-heavy offers, or brands whose website content doesn’t fully explain the use cases.
Search themes work best when they add incremental context rather than duplicating what your landing pages already make obvious. You can add up to 50 search themes per asset group, which is plenty if you structure themes around use cases, pain points, and category language (not long-tail keyword strings).
5) Customer lifecycle goals: pay differently for new vs. existing customers
One of the most underrated ways Performance Max boosts ROI is by letting you optimize beyond “a conversion is a conversion.” With customer acquisition and retention capabilities, you can tell the system to prioritize new customers, bid higher for them (without fully excluding existing customers), and even pursue win-back behavior for lapsed customers in eligible retention setups.
When you can reliably identify customer status (through your tracking setup and/or customer lists), you stop overpaying for conversions you would have gotten anyway. That’s where real incrementality starts showing up in reporting and in blended ROAS.
A Practical Setup Blueprint That Drives Better Performance (and Fewer Surprises)
Step 1: Nail measurement before you touch creative
If you want Performance Max to “boost ROI,” you must be confident that your Primary conversions represent business outcomes. Otherwise, you’re just scaling the wrong thing faster.
- Choose the right Primary conversion actions so bidding optimizes toward real outcomes (qualified leads, purchases, booked calls, etc.). Keep softer actions as Secondary unless you have a deliberate strategy.
- Use accurate conversion values wherever possible, and keep them updated when offers or economics change so bidding doesn’t chase outdated value signals.
- For new customer strategies, ensure your setup can reliably distinguish new vs. existing customers using your customer lists and/or the available new customer parameters in your tagging approach.
Step 2: Structure asset groups like “mini-campaigns” (one audience intent per group)
Asset groups are where Performance Max’s targeting signals and creative meet. If you cram unrelated offers into one asset group, you usually get generic messaging, muddled learning, and weak insights. If you separate by intent (for example: “premium service,” “entry-level offer,” “enterprise,” “seasonal promotion”), the system has a cleaner job matching intent to the right message.
As a rule, each asset group should have one clear promise, one clear landing page path, and a search theme set that describes that specific intent.
Step 3: Decide how much landing-page automation you actually want
Final URL expansion can be a performance unlock because it lets the system route users to the most relevant page based on intent. But it must be controlled when you have non-commercial pages, recruiting pages, PR pages, or content that attracts the wrong audience.
You have three practical options, and the right choice depends on your site and compliance needs. You can leave Final URL expansion on and use URL exclusions to block low-value sections. You can use page feeds as a strong signal while still allowing expansion. Or you can turn expansion off and restrict traffic only to the URLs you explicitly provide.
One important nuance: if Final URL expansion is on, a page feed helps verify and prioritize URLs, but it does not automatically restrict traffic only to feed URLs. If Final URL expansion is off, then the campaign will only send traffic to URLs provided via the feed and asset groups.
Step 4: Build brand and intent guardrails (without strangling reach)
Performance Max will often find branded demand—sometimes even overlapping with brand keywords you run in Search. If you want to keep brand intent in a dedicated Search campaign (common in mature accounts), use brand exclusions as the primary method. Brand exclusions are also a more complete solution than negative keywords for brand protection because they cover common misspellings and variants.
Use negative keywords sparingly and intentionally. They are a highly restrictive control and can harm performance by blocking the system from learning and from accessing valuable query variations. If you do use them, focus on true brand-safety exclusions or clearly irrelevant intent that you never want to pay for.
Step 5: Use visibility tools to optimize like a pro (not like it’s a black box)
Performance Max has materially improved transparency. You can now analyze performance with tools that help you understand where spend is going, which assets are driving outcomes, and where the campaign is limited.
Start with the channel performance report (currently rolling out more broadly as a beta experience). This view shows how your campaign delivers across channels, includes diagnostics (such as missing assets, feed issues, or eligibility limitations), and lets you segment by ad formats like “ads using product data” or “ads using video.” If a channel isn’t spending, it’s not automatically a problem—sometimes the system is prioritizing the channels predicted to deliver the best ROI at that moment. The diagnostics help you tell the difference between “smart allocation” and “blocked by an issue.”
Use asset reporting to evaluate which creatives contribute to results and costs. Recent reporting enhancements also make it easier to view assets created through text customization and Final URL expansion, and remove them if they don’t meet brand standards.
For Search learning, combine search terms reporting (where available in your account) with search terms insights. Search terms insights groups demand into intent-based categories so you can spot new pockets of demand without drowning in raw query lists.
Brand Safety and Control: How to Keep Performance Max on the Rails
Placement visibility (and what it’s actually for)
If you’re doing any meaningful spend, you should be using placement reporting as a brand safety tool. Placement reports show where ads served and how many impressions were received, but they should not be treated as your performance truth because they don’t include every channel in a clean, apples-to-apples way.
Placement reporting has expanded over time; for example, placement reporting now supports search partner network sites in addition to other placement types. Use that visibility to identify placements you never want, then apply placement exclusions at the account level where appropriate.
Account-level suitability controls that scale across campaigns
If you manage multiple campaigns or multiple accounts, centralizing brand suitability controls is where you save hours and reduce risk. Performance Max respects account-level placement exclusions, and you can also use account-level keyword exclusions and content suitability controls to reduce exposure to unwanted content categories and placements.
A simple weekly optimization cadence (what I’d do in a real account)
- Check channel diagnostics for eligibility limits (missing video, missing location assets, feed disapprovals, policy-limited asset groups, or budget constraints).
- Review asset performance and replace low-performing or off-brand combinations with new variations (don’t just delete—refresh with intent-aligned alternatives).
- Scan search terms insights for emerging demand categories, then add or refine search themes and update landing pages/creative to match that language.
- Audit brand traffic strategy monthly: if Performance Max is cannibalizing brand and you don’t want it to, tighten brand exclusions and ensure brand Search isn’t budget-capped.
What “good” looks like after the learning period
Performance Max typically needs time and stable inputs to learn. After that, the biggest sign it’s truly boosting your account isn’t just cheaper CPA on a dashboard—it’s incremental volume at acceptable efficiency, stable conversion quality, and clearer segmentation of new vs. returning customers if you’re running lifecycle goals. When those three are true, Performance Max stops being a mystery campaign and becomes one of the most scalable levers in the account.
Let AI handle
the Google Ads grunt work
Let AI handle
the Google Ads grunt work
Performance Max can boost your Google Ads results by extending your reach across all of Google’s inventory from one goal-based campaign while Smart Bidding optimizes toward the conversion volume or value you care about most—provided your inputs are clean: accurate primary conversion goals and values, strong creative coverage in asset groups, well-chosen audience signals and search themes, and sensible guardrails like Final URL expansion settings, exclusions, and brand/negative controls so you don’t cannibalize your most controlled Search traffic. If you want a practical way to stay on top of these moving parts, Blobr connects to your Google Ads account and continuously turns best practices into clear, prioritized actions using specialized AI agents—for example, improving weak ad assets with its Headlines Enhancer or tightening message-to-intent alignment with its Campaign Landing Page Optimizer—so you can keep Performance Max learning in the right direction without treating it like a black box.
Why Performance Max Can Lift Conversions and ROI (When It’s Set Up Correctly)
Performance Max is a goal-based campaign type built to run across the full Google Ads inventory from one campaign. Instead of you hand-picking each placement and managing separate campaign types channel by channel, you define the business outcome you care about (leads, sales, store goals) and the system dynamically allocates bids and budget in real time to the auctions most likely to hit that goal.
In practice, Performance Max boosts campaigns in two big ways. First, it expands reach beyond what most teams can reasonably manage with siloed Search, Display, video, and Shopping setups—especially when demand shifts quickly. Second, it optimizes as one system across channels, so it can pursue the most cost-efficient conversion opportunities moment by moment rather than being “stuck” spending budget in a single channel because that’s how the account is structured.
It’s also designed to complement keyword-based Search campaigns rather than replace them. If a user’s query is identical to an exact match keyword in your Search campaign, Search is prioritized. That’s why the strongest accounts use Performance Max as the scalable “net” for incremental conversions, while Search stays the precision tool for the most controllable, highest-intent queries.
How Performance Max actually finds customers without keywords
Performance Max uses “keywordless targeting,” which means it relies on signals from your campaign settings, conversion goals, creative assets, landing pages, and (when applicable) product data feeds. You’re not building ad groups around keyword lists; you’re supplying high-quality inputs and guardrails so the system can match intent to the best ad and landing page combination.
That sounds abstract, so here’s the simplest way to think about it: your job shifts from “keyword sculpting” to “signal engineering.” When you improve the signals (goals, values, audiences, creative variety, page selection, and exclusions), Performance Max gets smarter faster and wastes less spend.
The Levers That Make Performance Max Boost Results
1) Smarter bidding because it’s anchored to conversion goals and values
Performance Max runs on Smart Bidding to optimize for either conversion volume or conversion value. If you’re serious about ROI, the fastest path to improvement is usually not a new trick inside the campaign—it’s tightening the goal setup so the system optimizes toward outcomes that reflect real business value.
For ecommerce, that typically means purchase value is accurate and consistent, and you’re bidding to maximize conversion value (optionally with a target ROAS). For lead gen, it means you’re not feeding the algorithm low-intent “micro-conversions” as Primary goals unless they truly represent value (or are at least strongly correlated with revenue). When your goals are noisy, Performance Max gets noisy.
2) Stronger creative coverage across channels (including automation you can control)
Performance Max builds ads from your assets and can also generate additional assets through text customization. With Final URL expansion enabled (on by default in many setups), it can select a more relevant landing page and generate dynamic headlines and descriptions that match that page’s content. This is one of the biggest reasons Performance Max can scale: it’s constantly testing combinations and matching them to intent.
The boost comes when you supply enough variety that the system can do its job. In 2026, you should assume you need a real creative mix: multiple angles, multiple image types, and at least one solid video asset. If you don’t provide video, the system can generate one, but in my experience, advertiser-provided video aligned to the offer and audience almost always gives you better control over message quality and brand feel.
3) Audience signals that accelerate learning (without limiting reach)
Audience signals are optional, but they’re one of the simplest ways to reduce “ramp-up time,” especially for new accounts, new offers, niche products, or fresh landing pages. Importantly, audience signals don’t hard-restrict delivery the way traditional targeting did in older campaign types; they act as guidance, and the system can still go beyond them when it predicts someone else is likely to convert.
The most effective audience signals are usually first-party lists (past purchasers, lead lists, high-LTV segments), followed by custom segments built from the actual language customers use when searching. If your team struggles to communicate “who this is for,” audience signals are where you encode that knowledge.
4) Search Themes: steer Search demand without turning Performance Max into “keyword Search”
Search themes let you provide words and phrases that describe what your customers are likely to search for. This is especially powerful for niche categories, new product launches, businesses with jargon-heavy offers, or brands whose website content doesn’t fully explain the use cases.
Search themes work best when they add incremental context rather than duplicating what your landing pages already make obvious. You can add up to 50 search themes per asset group, which is plenty if you structure themes around use cases, pain points, and category language (not long-tail keyword strings).
5) Customer lifecycle goals: pay differently for new vs. existing customers
One of the most underrated ways Performance Max boosts ROI is by letting you optimize beyond “a conversion is a conversion.” With customer acquisition and retention capabilities, you can tell the system to prioritize new customers, bid higher for them (without fully excluding existing customers), and even pursue win-back behavior for lapsed customers in eligible retention setups.
When you can reliably identify customer status (through your tracking setup and/or customer lists), you stop overpaying for conversions you would have gotten anyway. That’s where real incrementality starts showing up in reporting and in blended ROAS.
A Practical Setup Blueprint That Drives Better Performance (and Fewer Surprises)
Step 1: Nail measurement before you touch creative
If you want Performance Max to “boost ROI,” you must be confident that your Primary conversions represent business outcomes. Otherwise, you’re just scaling the wrong thing faster.
- Choose the right Primary conversion actions so bidding optimizes toward real outcomes (qualified leads, purchases, booked calls, etc.). Keep softer actions as Secondary unless you have a deliberate strategy.
- Use accurate conversion values wherever possible, and keep them updated when offers or economics change so bidding doesn’t chase outdated value signals.
- For new customer strategies, ensure your setup can reliably distinguish new vs. existing customers using your customer lists and/or the available new customer parameters in your tagging approach.
Step 2: Structure asset groups like “mini-campaigns” (one audience intent per group)
Asset groups are where Performance Max’s targeting signals and creative meet. If you cram unrelated offers into one asset group, you usually get generic messaging, muddled learning, and weak insights. If you separate by intent (for example: “premium service,” “entry-level offer,” “enterprise,” “seasonal promotion”), the system has a cleaner job matching intent to the right message.
As a rule, each asset group should have one clear promise, one clear landing page path, and a search theme set that describes that specific intent.
Step 3: Decide how much landing-page automation you actually want
Final URL expansion can be a performance unlock because it lets the system route users to the most relevant page based on intent. But it must be controlled when you have non-commercial pages, recruiting pages, PR pages, or content that attracts the wrong audience.
You have three practical options, and the right choice depends on your site and compliance needs. You can leave Final URL expansion on and use URL exclusions to block low-value sections. You can use page feeds as a strong signal while still allowing expansion. Or you can turn expansion off and restrict traffic only to the URLs you explicitly provide.
One important nuance: if Final URL expansion is on, a page feed helps verify and prioritize URLs, but it does not automatically restrict traffic only to feed URLs. If Final URL expansion is off, then the campaign will only send traffic to URLs provided via the feed and asset groups.
Step 4: Build brand and intent guardrails (without strangling reach)
Performance Max will often find branded demand—sometimes even overlapping with brand keywords you run in Search. If you want to keep brand intent in a dedicated Search campaign (common in mature accounts), use brand exclusions as the primary method. Brand exclusions are also a more complete solution than negative keywords for brand protection because they cover common misspellings and variants.
Use negative keywords sparingly and intentionally. They are a highly restrictive control and can harm performance by blocking the system from learning and from accessing valuable query variations. If you do use them, focus on true brand-safety exclusions or clearly irrelevant intent that you never want to pay for.
Step 5: Use visibility tools to optimize like a pro (not like it’s a black box)
Performance Max has materially improved transparency. You can now analyze performance with tools that help you understand where spend is going, which assets are driving outcomes, and where the campaign is limited.
Start with the channel performance report (currently rolling out more broadly as a beta experience). This view shows how your campaign delivers across channels, includes diagnostics (such as missing assets, feed issues, or eligibility limitations), and lets you segment by ad formats like “ads using product data” or “ads using video.” If a channel isn’t spending, it’s not automatically a problem—sometimes the system is prioritizing the channels predicted to deliver the best ROI at that moment. The diagnostics help you tell the difference between “smart allocation” and “blocked by an issue.”
Use asset reporting to evaluate which creatives contribute to results and costs. Recent reporting enhancements also make it easier to view assets created through text customization and Final URL expansion, and remove them if they don’t meet brand standards.
For Search learning, combine search terms reporting (where available in your account) with search terms insights. Search terms insights groups demand into intent-based categories so you can spot new pockets of demand without drowning in raw query lists.
Brand Safety and Control: How to Keep Performance Max on the Rails
Placement visibility (and what it’s actually for)
If you’re doing any meaningful spend, you should be using placement reporting as a brand safety tool. Placement reports show where ads served and how many impressions were received, but they should not be treated as your performance truth because they don’t include every channel in a clean, apples-to-apples way.
Placement reporting has expanded over time; for example, placement reporting now supports search partner network sites in addition to other placement types. Use that visibility to identify placements you never want, then apply placement exclusions at the account level where appropriate.
Account-level suitability controls that scale across campaigns
If you manage multiple campaigns or multiple accounts, centralizing brand suitability controls is where you save hours and reduce risk. Performance Max respects account-level placement exclusions, and you can also use account-level keyword exclusions and content suitability controls to reduce exposure to unwanted content categories and placements.
A simple weekly optimization cadence (what I’d do in a real account)
- Check channel diagnostics for eligibility limits (missing video, missing location assets, feed disapprovals, policy-limited asset groups, or budget constraints).
- Review asset performance and replace low-performing or off-brand combinations with new variations (don’t just delete—refresh with intent-aligned alternatives).
- Scan search terms insights for emerging demand categories, then add or refine search themes and update landing pages/creative to match that language.
- Audit brand traffic strategy monthly: if Performance Max is cannibalizing brand and you don’t want it to, tighten brand exclusions and ensure brand Search isn’t budget-capped.
What “good” looks like after the learning period
Performance Max typically needs time and stable inputs to learn. After that, the biggest sign it’s truly boosting your account isn’t just cheaper CPA on a dashboard—it’s incremental volume at acceptable efficiency, stable conversion quality, and clearer segmentation of new vs. returning customers if you’re running lifecycle goals. When those three are true, Performance Max stops being a mystery campaign and becomes one of the most scalable levers in the account.
