What is Performance Max?

Google introduced Performance Max at the beginning of 2022. The “idea” behind Performance Max is to have it complement your existing Search campaigns. This summer, Google has pushed advertisers to switch Smart Shopping campaigns to Performance Max or add Performance Max to your active campaigns.

Benefits (According to Google)

Google claims you can find more converting customers with consumer intents and audience signals with Performance Max. Performance Max is also meant to drive more value through improved machine learning. This is intended to enhance creativity and the optimization of your campaigns. Performance Max, according to Google, is expected to provide a more in-depth look at your campaign with new insights.

When to use Performance Max

If you have conversion-based advertising goals, using Performance Max is a good idea. Performance Max can also help you maximize performance while not being limited on ad placements. Additional reach and conversions beyond your keyword-based Search campaigns is another reason to use Performance Max.

Pro’s

Performance Max provides easier ad optimization and more automation between budgets and bidding. Check-ins are much easier with Performance Max as there aren’t as many moving parts that need to be accounted for.

New audience segments greatly improved some advertisers’ ROAS with Performance Max. For example, LP’s Performance Max has spent approximately $500 in the week it has been running, resulting in a ROAS of 580%. Their ROAS was around 372% prior to the Performance Max change.

Con’s

Performance Max has a low level of control. No negative keywords or smart bidding strategies are available through Performance Max.

There also appears to be difficulty with Performance Max to analyze the source of data. Some users of Performance Max reported bugs with reporting between Google Ads and Analytics.

Asset Requirements Chart for user reference with Performance Max

 

 

For more information, check out this article from Google Help about Performance Max campaigns and this post in Google Ads API guides!