Performance Max: What is it?

Performance Max: What is it?

Google will replace Smart shopping campaigns with Performance Max (PMax) as a new campaign type in Google Ads in 2022. Google advises studying as much as you can about the new tool as soon as possible to ease the transition since Smart shopping ads will eventually disregard smart shopping efforts.

PMax's primary goal is to give marketers more channels to advertise on and a higher level of automation.

What does Performance Max intend to achieve?

Performance Max is a campaign type that is fully automated and runs on a variety of channels, including Search, Display, Discover, Youtube, Gmail, and Maps.

Google's motivation for introducing this new option stemmed from its belief that many advertisers struggled to identify the appropriate channel for each campaign and develop their knowledge in that field. Due to this, marketers ultimately focused on only a few tracks, missing out on the real potential that Google Ads had to offer.

Although this high degree of automation may initially seem unsettling, Google's strategy does not involve removing individuals' freedom and responsibility altogether and assuming complete control over all activities. To utilize PMax, you still need to set the proper objectives and offer worthwhile resources.

Google unveiled a new methodology to define these relevant goals. To maximize return on investment, you can focus your optimization efforts on one or more objectives (online sales, lead generation, and offline sales) and provide varying values to your conversions. You can choose between primary and secondary actions within a particular goal. Secondary objectives are monitored so that you can see them, but the system is not actively optimizing toward them. Primary activities are essentially the ones that lead to (automatic) bid optimization.

It is significant to note that channels cannot yet be manually omitted from PMax because the goal is not to miss any possibilities. Performance Max is essentially a conversion-focused performance-driven campaign. The recommended best practice is to continue using other types of campaigns in addition to PMax for KPIs that are not performance-related. Running a particular campaign on Youtube in conjunction with Performance Max for lower-funnel objectives could be a viable answer for upper-funnel goals like raising awareness.

How are Smart Shopping campaigns different from performance Max?

In addition to making use of all of Google's inventory, PMax offers a variety of bidding possibilities.

Performance Max adds Discover, Youtube In-stream, and Maps to the mix in addition to Search, 3P Display, and O&O Display, including Gmail and Youtube, to increase reach and conversions and open up new audience segments.

Alternatives for bids in performance Max adds conversion value-maximizing with optional cost per action to new customer acquisition, store visit bidding, conversation value-maximizing with optional ROAS, and conversation value-maximizing with optional return on ad spend. Performance Max improves on defining goals with targets and has fully automated bidding, unlike Smart Shopping.

You may also supply Audience signals for better performance and create Conversion value guidelines. You are given an Insights page for a summary, which adds to your control and transparency.

In Smart Shopping Campaigns, budgets were frequently divided and siloed by network or objective; in PMax, they are pooled across inventories and encouraged to be shared across goals for improved overall performance.

What ad forms are available, and what information must you supply?
The various ad types available on each Google Inventory will be discussed in this highly technical part, along with the assets you must give for them to function.

Search Engine

The forms available in the search inventory are shopping advertising and text advertisements. A feed is required for shopping advertisements, whereas text ads only require the text itself and a final URL.

3P display

Here, responsive and dynamic display adverts are in doubt. You must supply an image, text, and video asset for responsive display ads. Dynamic display ads use video, HTML5 assets, photos, and feeds.

O&O display (Gmail and Youtube)

Similar to Display 3P Responsive and Dynamic display adverts, there are choices to appear on Gmail and YouTube. While dynamic display advertisements also require a feed, responsive display ads use text and image assets.

O&O display (Discover)

Responsive and dynamic display advertising are offered, similar to the display above inventories. Image and text assets are essential for both responsive and dynamic display advertisements.

Youtube (video only, excluding display)

The available ad format is YouTube instream, which utilizes text, images, and video elements you supply.


Local Inventory Ads (LIA) on place sheets and map pins are in doubt for Google Maps. It would be best if you supplied a GMB feed, a picture, and text assets.

The best approach is to group assets. Depending on the channel (inventory) it serves, an asset group is a collection of creatives that will be used to produce an advertisement.

They are encouraged to be arranged similarly to how ad groups would be set, for example, by common topics (items). More assets make it possible to reach more users and potential ad types.

the best ways to use performance Max and best practices for doing so
It is strongly advised to begin testing performance Max as soon as feasible because gathering all the necessary resources may take some time. Since regular campaigns frequently include extra features like search with keywords, which can help maintain brand presence and conversion volume, it can be used in conjunction with existing traditional shopping campaigns as a complementary strategy. PMax can help to capture any additional conversion opportunities that may be present.

A 4-6 week evaluation of performance Max results is also encouraged. If your objective is to increase conversions, you can assess your performance using conversions and cost per action. Insights can be gained from conversion value and return on ad spend at the account level before and after the acquisition of the PMax campaign if your selected objective is to maximize conversion value.

You must supply as much information as possible to achieve the most outstanding performance during the campaign setup. As signals for the campaign, this can comprise the remarketing list, custom intent, customer match, and comparable audiences.

Regarding campaigns, creatives (assets) are crucial because original and eye-catching material is one of your most essential instruments for maximizing performance. Manually optimizing all the data can take a very long time if you have a lot of products to include in your campaign. It is a terrific idea to collaborate with a data feed management platform like WakeupData to achieve the best outcomes. By doing this, you can guarantee that all the data provided is accurate and up to date, which is essential for Pmax campaigns to succeed.

For the best results, it is suggested that time-based promotion campaigns (for instance, one for a weekend sale) begin two to three weeks in advance.

Not to mention, it's essential to take the time to read through reports, evaluate ad strength, and aim for excellence in ad rank. Don't forget to practice good hygiene, check your facts and values twice, and most importantly, set goals that align with your values.

Please contact us if you have any inquiries or would like more information about how product feed management could benefit your company.