Recently, a new competitor joined the ranks of campaigns we can run in the Google Ads system: Performance Max. According to Google, beta testing of this type of advertising was a resounding success, so now all advertisers worldwide can use this new feature in their dashboard. But what exactly is Performance Max, and is it worth using? Here's some key information about the latest innovation in Google Ads.
Good to know…
Starting in June 2022, you can manually upgrade both Smart Shopping and Local campaigns to Performance Max campaigns . If you don't, they will be automatically upgraded by the end of September, preserving your previous budget, goal, and other settings. After the automatic upgrade, creating new Local and Smart Shopping campaigns will become unavailable. Google encourages adding multiple creative assets (images, text, video) to Performance Max campaigns – this way, campaigns can reach their full potential across multiple locations and channels.
Performance Max – what is it?
Performance Max is a new type of Google Ads campaign based on machine learning algorithms. This isn't entirely new to the Google Ads landscape. Users of this system are familiar with other campaign types in which ads are automatically optimized, and the tool automatically adjusts bids and mixes pre-loaded ad elements like banners, text, and logos to find the most effective combinations. This operating model is familiar from formats like Smart Shopping campaigns and responsive search ads. However, Performance Max goes a step further – it provides multi-channel ad optimization within a single campaign. This new feature was designed to complement keyword-based search campaigns, but it provides access to all Google advertising inventory from a single location.
(The rest of the article can be found below the form)
What does this mean in practice? Using Performance Max , we create a single campaign and use it to display ads across all Google Ads platforms, including the Search Network, Display Network, YouTube, Gmail, Google Maps, and Discover. The best assets for our ads are automatically selected in real time, based on data collected 24/7 by the algorithm.
How does the Performance Max campaign work?
Performance Max campaigns are based on marketing goals, which we define in the first steps of ad creation. This allows us to determine from the outset whether the campaign goal should be, for example, target cost per action (CPA) or target ROAS. The wizard will also prompt us to add relevant materials and define basic settings. At this stage, we must specify the preferred campaign runtime (minimum 4 weeks) and define the budget, geographic reach of the ads, and the target audience. We also need to provide the system with:
- headlines and descriptions for text and display ads,
- graphics for Discover and Display ads and on YouTube,
- company logo,
- video for YouTube InStream ads,
- product feed from Google Merchant Center.
When we launch a Performance Max campaign , the system considers data from all advertising assets, analyzes user behavior at a specific moment, and then optimizes bids and purchases ad space for our company. It works in real time, ensuring the best results across all channels at any given time.
Audience Signals – a new method of selecting the target group
With the introduction of Performance Max, a new method for finding the most valuable audiences for specific ad creatives has also emerged – Audience Signals. This method of targeting combines Google's automatic targeting with our knowledge of the brand's customers. Within Audience Signals, we can define the group that is most important to our business and, in our opinion, offers the greatest chance of conversion. However, the system can expand its reach beyond this defined group if it predicts it could increase campaign profits. This solution is intended to shorten the algorithm's learning curve and, consequently, improve campaign results.
Performance Max and other types of campaigns
But why did Performance Max even appear , when all these formats could have been launched as separate campaigns? It's Google Ads' response to the constant changes in customer behavior and their purchasing paths. Currently, 70% of consumers are shopping online more often than in the pre-pandemic era. At the same time, however, their path to conversion is changing increasingly rapidly, making it difficult to predict its future. Furthermore, the conversion path often becomes significantly longer – Google reports that in some cases, users may experience up to 500 touchpoints with ads before conversion occurs. In such a changing reality, only a well-developed algorithm that learns consumer behavior can aid in data analysis and campaign optimization. If it can analyze the performance of all channels where ads are displayed within a single campaign, it has enough data to more accurately predict which bids, placements, etc. will be the best choice at any given time.
Will this actually happen? Time will tell. Currently, this format is still underutilized, and some time will pass before we can say anything definitive about Google's new product. This type of campaign certainly has potential for companies with large advertising budgets and launching multiple formats simultaneously. Currently, Google's website states that beta testing for Performance Max has been promising, with advertisers using this campaign seeing an average conversion increase of 13% with a similar budget to separate campaigns for individual formats. Therefore, Performance Max is a new product worth keeping an eye on, and one that could become a popular solution for companies with significant budgets in the future.
Frequently asked questions about Performance Max campaigns in Google Ads
This fully automated type of Google Ads advertising campaign is powered by artificial intelligence and machine learning. It allows advertisers to achieve specific conversion goals within a single campaign.
Performance Max's biggest advantage is its versatility. By launching a single campaign, your ads can appear in all the major places in the Google ecosystem, including:
- Google search engine,
- Advertising Network (Display),
- YouTube
- Discover Cards,
- Gmail,
- Mapy Google.
In traditional campaigns, advertisers manually select placements, bids, and keywords. In Performance Max, the creator's primary task is to provide assets (text, images, video) and define a budget and goal (e.g., sales, lead generation). The algorithm independently mixes these assets and decides where and to whom to display the ad to achieve the highest return on investment.
Audience signals are suggestions for the algorithm. Instead of rigidly defining a target audience (which could limit reach), you suggest to the system who might be interested in your offer (e.g., people on remarketing lists or visitors to specific websites). The AI uses these signals as a starting point, allowing it to start optimizing faster and finding new, profitable users.
In line with Google's decision, Performance Max campaigns have completely replaced older, popular formats – Smart Shopping campaigns and Local Campaigns – by taking over their functionalities and significantly expanding the scope of customer reach.
Summary
The above article covers the following topics:
- Performance Max Campaign Definition,
- Principles of operation of Performance Max,
- A new group selection method: Audience Signals,
- Performance Max compared to other formats.
