Why You Should Test Performance Max Campaigns

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If you work in digital marketing, you might be wondering how your Google Ads campaigns should be optimized nowadays. Google introduced Performance Max campaigns in 2021 with the goal of helping you optimize your budget and simplify the process of managing Google Ads.

Keep reading to learn more about Performance Max campaigns and how you should be using them in 2024.

What Is Performance Max?

Google Performance Max is a goal-based campaign solution that can help you meet your goals like your CPA or ROAS target. Performance Max uses automated smart bidding strategies and machine learning technologies to optimize bids for your campaigns in near real-time, giving you an advantage over competitors.

Performance Max also allows access to all of Google’s inventory (Search, Display, YouTube, Discover, Gmail, Maps) from a single campaign. This makes it easier to manage and you don’t need to rely too much on strategy. Plus, it gives you more control over the media and helps you with budget optimization through efficient targeting.

What Are the Benefits of Performance Max?

ScaledOn clients that switch from Shopping campaigns to Performance Max have seen an increase in their sales metrics. CPA or ROAS targets are easier to achieve with Performance Max, which makes it a preferred choice for advertisers. 

Furthermore, as mentioned, PMax allows you to execute a multi-channel strategy, reaching customers across various platforms without needing separate campaigns, thus driving more comprehensive results. The automation and machine learning that power PMax allows you to get more out of your ad spend by constantly optimizing in real-time.

When Should You Use Performance Max?

Given that efficiency is a major concern when it comes to budget optimization, Performance Max is ideal for marketers who want to make the most of their Google Ads campaigns. According to Google, advertisers, media management, and marketing directors can benefit from using Performance Max, especially when:

• When You Have A Very Specific Advertising And Conversion Goal.
  This means that you want to focus on a specific metric like your CPA or ROAS target. Performance Max can help you optimize your campaigns for that.
• When Your Ads Are Not Limited To One Or Specific Channel
  Performance Max is best used when flexibility is not an issue. If you have ads made for a specific channel or limitations such as budgets, time, or niche, then Performance Max might not be the best option for you.
• When You Want to Maximize Conversions Across Multiple Channels Performance Max gives you access to all of Google’s inventory, so you don’t need to create multiple campaigns for each channel.
• When You Want to Supplement Existing Search Campaigns
  PMax can complement your existing search campaigns by covering gaps where traditional search campaigns may miss potential customers. This is especially useful for capturing demand in areas where your keywords might not reach.
• When You Want to Improve ROAS (Return on Ad Spend).
  Together with your keyword-based and other PPC strategies, Performance Max uses real-time data and AI to optimize bids and placements toward the highest-ROI opportunities, making it an ideal tool for businesses that want to maximize their return on ad spend.
• When You Need to Generate Offline Sales or In-Store Visits
  PMax campaigns can track and optimize for offline conversions or in-store visits, making it a great tool for local businesses or retailers with physical locations.
• When You Want to Capture New Customer Segments
  PMax’s machine learning algorithms can find new customer segments and opportunities beyond the ones typically reached through Search or Display campaigns.

Performance Max Best Practices Checklist

Performance Max can be easily set up and Google actually provides the best practices depending on your goals. If you are amongst advertisers with online sales and offline goals, here are a few of the best practices to follow when using Performance Max:

• Set clear goals (e.g., conversions, sales) and let Google’s machine learning algorithms optimize for those goals. Prioritize conversions like sales, high-value leads, or subscriptions rather than softer metrics like page views or clicks. This ensures that the AI focuses on generating valuable outcomes. Trust the automation but monitor performance regularly.
• Set Clear and Measurable Conversion Goals: Implement proper conversion tracking through Google Tag Manager, Google Analytics, or offline conversions. Ensure the conversion actions you track are directly tied to your key performance indicators (KPIs).
• Utilize First-Party Data with Audience Signals: While PMax campaigns can target broad audiences, you can steer Google’s AI by providing Audience Signals. These signals, like customer lists or website visitors, help Google understand your most valuable audience segments. Use first-party data, such as your CRM list or high-value customer data, to guide Google on where to focus efforts.
• Set Realistic Learning Period Expectations: PMax campaigns need a learning period where Google gathers data on which ads and audience segments perform best. Avoid making drastic changes during the learning period (typically 4-6 weeks), as it can disrupt the AI’s optimization process. Let the algorithm stabilize before drawing conclusions.
• Provide Diverse Creative Assets: PMax uses machine learning to mix and match your creative assets (headlines, images, videos) to create dynamic ads. The more assets you provide (min 5 versions), the more Google has to test and optimize. Upload a variety of high-quality images, videos, at least 5 versions of text assets (5 headlines, 5 descriptions) that align with your goals. Ensure that the creatives are engaging and tailored for different stages of the customer journey.
• Refresh your creativity. Creativity is your most powerful tool to drive performance and allows you to customize the campaign to promote new products or new offers. For the best results, focus on providing unique content. Run A/B tests on different creatives, for example, test different ad copy or video variations to see which drives better engagement and conversions.
• For weekend sales, start the campaign 2-3 weeks in advance, then refresh your creative frequently to move from more generic store creative to sales-focused creative. This strategy will allow you to do time-based promotions without compromising performance.
• Use Custom Labels for Product Segmentation: If you have a product catalog, custom labels can help you segment products based on factors like price, margin, or seasonal relevance. Use custom labels to categorize products in a way that aligns with your business objectives. For instance, label high-margin or seasonal products to prioritize their promotion in PMax campaigns.
• Monitor Insights: Regularly review the Insights Reports to see which creatives, placements, and audiences are driving conversions. Use this data to refine your assets and audience signals, and adjust your bidding strategy accordingly.

All ScaledOn’s clients have seen significant improvement in sales metrics after switching from Shopping campaigns to Performance Max. The results speak for themselves, making Performance Max an essential tool for advertisers.

Request Your Google Ads Audit Today

At ScaledOn, we understand the importance of setting up and managing Performance Max campaigns. We have a team of experienced PPC professionals who can help you with your digital marketing strategy and make sure your campaigns are running smoothly. Boost your sales through Google Ads campaigns and get in touch with us for a comprehensive Google Ads audit.