Google Ads has several campaign types, and Performance Max is one you’ll often come across alongside Search.
Performance Max, also known as PMax, is a campaign type that can advertise across Google’s channels from one campaign. Google uses automation to decide which advertising opportunities to pursue based on your conversion goals, budget and the assets you provide.
But what do you actually get from it, and which businesses would I recommend it for? In this guide, I’ll explain how it works, why I consider it for e-commerce and where I prefer a more focused approach.
If you’re ready to build one, follow my separate guide to creating a Performance Max campaign in Google Ads.
When Was Performance Max Released?
Google began rolling Performance Max out to all advertisers on 2 November 2021, following an earlier introduction and testing period. Its aim was to bring access to multiple advertising channels into one automated campaign. You can read Google’s launch announcement for the original explanation.
What Does Performance Max Include?
PMax can access Search, Shopping inventory when you have an eligible product feed, YouTube, Display, Discover, Gmail and Maps. Where your ads actually appear depends on eligibility, your assets, campaign settings and the opportunities Google predicts will help meet your goals.
You provide the information Google needs: conversion goals, a budget, bidding preferences, landing pages and creative assets such as headlines, descriptions, images and videos. Retailers can also connect products through Merchant Center.
Google combines these inputs to build ads and optimise bids and placements. Its Performance Max overview explains the campaign’s scope.
How Is PMax Different from a Search Campaign?
A Search campaign focuses on reaching people searching for relevant products or services, with keywords helping you organise that activity. A Video campaign focuses on video advertising.
PMax brings access to several channels into one campaign instead of requiring a separate campaign for each part of that activity. You set the overall objective, and Google makes more of the decisions about where to pursue it.
That does not mean PMax replaces every other campaign. Google describes it as a complement to keyword-based Search campaigns. There can still be good reasons to run Search or Standard Shopping separately, especially when you want a more focused approach.
I explain the value of reaching active searchers in my guide to why businesses use Google Search ads.
Why I Consider Performance Max for E-commerce
If you’re an e-commerce business, PMax is something I strongly recommend considering. Whether I would use it depends on your niche, budget, tracking and existing performance.
Different products and industries can perform differently across Shopping, Search and other placements. PMax gives Google flexibility to pursue opportunities across those channels within one campaign.
For example, if product ads on Shopping are predicted to generate more conversion value, the campaign can place more emphasis on those opportunities. That flexibility is one of the reasons I find PMax useful for e-commerce.
However, it does not simply move every pound to whichever channel looks best in a report, and it does not guarantee a better return. Its decisions depend on predictions and the goals you give it.
Accurate purchase values matter. If your objective is sales revenue, Google needs reliable information about what each order is worth. For the product-ad side, read how Google Shopping ads work.
When Would I Avoid Starting with PMax?
A Small Daily Budget
If your daily budget is around £20 or less, I would often start with Search or Standard Shopping rather than PMax.
My concern is that a small budget may not generate enough useful conversion data while the campaign explores different advertising opportunities. If clicks or sales are expensive in your market, that becomes more noticeable.
This is my practical recommendation, not a fixed Google minimum. £20 can buy very different amounts of traffic in different industries, and a larger budget does not guarantee that PMax will work.
With a limited budget, I prefer to focus on the activity most likely to produce useful results first. See how much you should spend on Google Ads for help thinking through the budget.
Lead Generation Businesses
For lead generation, I normally prefer Search as the starting point. I have seen PMax work for leads, but it is not usually my first choice.
A business selling a service generally cannot use a retail product feed in the same way as an online shop. The value of the wider placements also depends on whether they reach people likely to make a worthwhile enquiry.
My concern is lead quality. More form submissions are not necessarily better if the enquiries do not become customers. Display and video can work, but I would be cautious about assuming they will suit every service business.
This applies to lead generation rather than B2B as a whole. A B2B retailer selling products online is a different situation from a business trying to generate enquiries for a service.
Google supports PMax for lead generation, including feeding qualified-lead and sales information back into the account. Its Performance Max questions and answers covers lead-quality measurement. My preference for Search is a recommendation based on how I approach these accounts, rather than a platform restriction.
Which Bidding Strategies Does PMax Use?
PMax already uses automated Smart Bidding. The decision is which objective to optimise towards.
- Maximise conversion value: work towards the greatest tracked conversion value within your budget, with an optional Target ROAS.
- Maximise conversions: work towards conversion volume within your budget, with an optional Target CPA.
Google sets out these options in its Performance Max bidding guide.
For e-commerce with accurate sales values, I would normally consider conversion-value bidding. Where conversions are treated equally, Maximise conversions is another option.
I would be careful about adding an ambitious target too early. A restrictive Target ROAS or Target CPA can make it harder to get traffic and useful data.
For some campaigns, I would consider a starting ROAS target around 100–200%, but only if the business can afford that return during testing. Your margins and historical performance must guide the decision. My Target ROAS guide explains this in more detail.
Is Performance Max a Set-and-Forget Campaign?
No. Automation handles more of the delivery decisions, but you still need to provide suitable creative, choose meaningful goals and check the results.
Review actual sales or lead quality, spending and the return you are achieving. A campaign can only work towards the signals you give it, so incorrect conversion tracking can send it in the wrong direction.
Should You Use Performance Max?
PMax can be a useful option for an e-commerce business that has accurate purchase tracking, a suitable product feed and enough budget to test sensibly.
For a small budget or a lead generation business, I would usually consider Search or Standard Shopping first, depending on what you sell. PMax can still be tested later when there is a clear reason to use it.
For the practical walkthrough, read how to create a Performance Max campaign. If you would like help deciding which campaign type suits your business, request a free Google Ads audit.