Introducing Google’s All-In-One Campaign: Performance Max

Performance Max is a goal-based campaign type that allows advertisers to access the entire Google ecosystem within a single campaign. It was launched in November 2021 and replaced Smart Shopping in September 2022. Unlike traditional campaign types that focus on a single channel, Performance Max leverages Google’s full network and is the only campaign that does so – including Search, Display, Shopping, YouTube, Gmail, Discover, and Maps—to deliver highly optimised ads.

The primary goal of Performance Max is to help advertisers increase their online presence and drive conversions by reaching the right audience at the right time with the right message. It utilises AI automation and machine learning to optimise campaign performance in real-time making it a powerful tool for businesses looking to scale their digital advertising efforts.

Using audience signals, smart bidding, pre-existing account data, budget and creatives to optimise in real-time to target audiences who are most likely to engage and convert with the ads. 

Campaign Goal Options

• Sales – Drive purchases or transactions.
• Leads – Generate high-quality leads for businesses.
• Website Traffic – Increase site visits and engagement.
• Local store visits & promotions – Boost foot traffic to physical store locations.

Google’s machine learning technology allows Performance Max to determine when and where to show your ads across Google’s Network. Google serves your ads where your ideal target audience tends to be most engaged.

 

Where Do Performance Max Ads Show?

Performance Max ads can reach the full range of Google’s advertising channels: 

• YouTube – Video ads placed before or during content consumption.
• Display – Banner ads across Google’s Display Network.
• Shopping – Product listing ads featuring images, prices, and descriptions.
• Discover – Ads within Google’s Discover feed.
• Gmail – Interactive promotions appearing in user inboxes.
• Maps – Ads displayed on Google Maps search results.

Performance Max ads adapt to various formats, appearing as:

• Text ads – Similar to traditional search ads, appearing in Google search results.
• Visual shopping ads – Product-based ads with images and pricing.
• Interactive banners – Engaging banners shown across the Display Network.
• Video ads – Ads displayed on YouTube and Discover feeds.

Performance Max vs Smart Shopping

One of the biggest shifts from Smart Shopping to Performance Max is the increased automation and access to Google’s broader inventory. While Smart Shopping focuses mainly on product listings, Performance Max integrates various creative assets, audience signals, and automation features to drive stronger results.

For e-commerce brands, Shopping Ads within Performance Max campaigns can be a game-changer. They visually showcase products with essential details such as:

 

Shopping Ads appear more visually and informative than Search ads. The content is based on information provided in Google’s Merchant Centre Feed for each product. This is a fantastic option for e-commerce advertisers as these ads are more visual than Search ads – although both campaign types compliment each other well. Performance Max has been tested by different e-commerce advertisers and outperformed standard and smart shopping campaigns with its additional automation features and ability to find new audiences. A typical Shopping ad includes the product title, description, price, store/brand name, website URL, and product category.

How Do Performance Max Ads Work?

Setting up a Performance Max campaign is straightforward. Advertisers upload various creative assets, including 15 short headlines, 5 long headlines, 5 descriptions, 20 images, 5 videos, a business logo, and a name plus ad extensions such as sitelinks.

PMax dynamically combines these assets to create the most relevant and engaging ad for each user. Google’s AI continuously tests different combinations to determine the highest-performing variations for specific audience segments.

AI-Powered Optimisations

Performance Max leverages machine learning and automation to:

• Identify the most engaged users.
• Adjust bidding strategies based on real-time data.
• Optimize ad placements across multiple channels.
• Tailor ad creative for maximum engagement.

Pros & Cons

There are many advantages of Performance Max but like anything, there are a few drawbacks. Let’s weigh up the pros and cons.

Pros:

• Full Google network access – Advertisers can reach audiences across Search, Display, YouTube, Shopping & more. PMax is the only campaign type that allows advertisers to utilise Google’s whole, vast channel inventory
• Enhanced Search performance – Finds new audience segments beyond traditional search keyword targeting.
• Low cost per click (CPC) & conversions – Similar to Display activity.
• Advanced AI optimisation – Uses real-time data to target the right users at the right time.
• High-level automation – Google handles placements, bidding & ad variation.
• Reach & lead generation – Helps businesses generate traffic & conversions.
• Detailed audience targeting – Advertisers can add up to 25 search themes for audience expansion.

Cons:

• Limited reporting insights – Advertisers can’t access detailed audience or individual channel performance data.
• No channel customisation – Ads are severed across all networks without the ability to disable specific placement. 
• Automated video creation – if a video isn’t uploaded, Google automatically generates one (which may not align with brand guidelines).
• Can’t turn off certain channels. It’s all or nothing!

Is Performance Max Right For You?

Performance Max is a powerful tool, but it’s not a one-size-fits-all-solution. Businesses should assess their marketing objectives before committing to a campaign. Performance Max is ideal for:

• Generating high-quality traffic and conversions
• Seeking new audience segments beyond Search campaigns
• Lowering CPCs and CPLs with increasing reach
• Maximising Google’s automation and AI-driven bidding
• Creating a wider holistic, full-funnel account strategy
• Utilising more of Google’s automation & smart bidding
• Advertisers with strong creative assets (high-resolution images, videos, logos)
• Advertisers with historical, pre-existing data in their account

Advertisers only have the option to bid for new customers. Bidding for new customers is a great option if you’re heavily bidding on Branded terms and have remarketing on and you want to leverage account strategy to focus more on acquisition. Note, that it is better to focus on bottom-of-funnel conversions such as calls and store visits.

Complimenting Search Activity

While Performance Max campaigns run on the Search Network, they are not built to replace traditional Search campaigns. The key differences are as follows:

• Search campaigns rely solely on specific keyword targeting.
• Search campaigns offer granular control over targeting and ad placement.
• Performance Max maximise automation for better efficiency and performance.
• Performance Max uses AI to expand reach beyond keyword searches.

Many businesses find success by running both Performance Max and Search campaigns simultaneously. This full-funnel approach allows advertisers to:

• Capture demand-driven search traffic.
• Expand audience reach across different channels.
• Leverage Google’s AI to discover high-converting segments.

This is great as it’s a focused approach but does limit the ability to reach users who may not search those exact terms. Unlike Performance Max, which utilises all of them and therefore finds additional audiences that Search isn’t able to. As Performance Max utilises all the channels, this also provides way more data for the campaign to learn from and optimise for maximise performance.

Performance Max vs Display Campaigns

Interestingly, there has been an ongoing debate between Performance Max vs Display. Everything needs testing and is worth seeing it for yourself as it’s not always a one-case-fits-all approach. Display is used for awareness and consideration, while Search focuses on lower-funnel conversions.

However, Performance Max has proven to drive stronger awareness than Display for many advertisers. At The Marketing Mix, we tested Performance Max across multiple clients and observed significant increases in impressions, clicks, CTR, and soft conversions compared to Display. 

Final Thoughts

Performance Max is an exciting evolution in digital advertising, providing businesses with an all-in-one solution for maximizing reach and conversions. While it may not be suitable for every advertiser, those who leverage it effectively can achieve better performance, lower costs, and enhanced audience targeting.

At The Marketing Mix, we’ve successfully implemented Performance Max for various clients, and the results have been impressive. Whether you’re looking to generate leads, boost e-commerce sales, or expand brand awareness, Performance Max can be a game-changer in your marketing strategy.

Interested in launching a Performance Max campaign? Contact us today to see how we can optimize your digital advertising efforts!