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Google first introduced PMAX in Nov. 2021. Like all things new google worked on perfecting this platform utilizing marketers feedback (such as myself). It wasn't until Winter 2023 that I decided to jump on board with it. I wanted to make sure there was enough time for google to work things out before I decided to use it for my clients. If you are in e-commerce, I recommend PMAX instead of Search. Ofcourse also run a Shopping Campaign in addition. However you do not have to use PMAX for e-commerce primarily. There are benefits across all industry verticals. If you are doing well in Search and Display, PMAX is the way to go!
What is Performance Max (PMAX)?
Performance Max helps you drive performance based on your specified conversion goals, delivering more conversions and value by optimizing performance in real-time and across channels using Smart Bidding. Performance Max uses Google AI across bidding, budget optimization, audiences, creatives, attribution, and more.
PMax is a goal-based, campaign type in Google Ads that can be used to supplement your current marketing efforts.
Through AI and machine learning, it integrates data assets and search campaigns into your ad structure, then advertises across YouTube, Display, Search, Discover, Gmail, and Maps to strengthen and optimize your pay-per-click (PPC) strategy, save you time on account management, and maximize successful performance and results.
What are the Pros?
streamline marketing strategy
increase ad spend value
optimize conversions
#1 Pro
Streamlining your marketing strategy. I recommend PMAX in 2 scenarios. As an addition to your already existing search campaigns (icing on the cake) or your only campaign. In the instance that it is icing on the cake it will be the campaign that utilizes all googles marketing platforms to show your brand. It will be the easiest campaign for you to manage and will provide results if set up properly and you have the assets it requires. In the instance that it is your only campaign, this would be recommended if your budget is small and your vertical is highly competitive. As long as you have the right assets and the campaign is set up properly, your cpc's will be lower than if you were to only launch a search campaign. This will allow for more clicks and more opportunities for conversions at a lower cpa (cost per acquisition).
#2 Pro
Increasing your ad spend value. Because PMAX utilizes 6 platforms (YouTube, Display, Search, Discover, Gmail, and Maps) your cpc will average out to be slightly lower than if you were to run on search only. This gives your campaign opportunity to gain more value over time. I have seen campaigns shuffle daily budgets to give more towards their PMAX bc the cost per acquisition proves to be a higher return.
#3 Pro
We all want to optimize our conversions and PMAX helps to do just that. If you are running a search campaign set to $100/day and a PMAX set to $50/day and over time you begin to see your PMAX cpa's are lower than your search cpa's you will want to decide if you add more budget to your PMAX or reallocate your spend to ensure your conversions are being optimized.
What are the Cons?
lack of control
PMAX costs when there is little to no assets
not being streamlined enough
#1 Con
Unfortunately, google gives little control when it comes to PMAX. You are allowed 30 keywords, 20 images/20 videos and your headlines and descriptions are controlled. However, you can add your audiences and this part is an important step. PMAX runs best with an excellent status and in order to accomplish that you must increase your assets and check all the boxes. You also need to implement conversion actions so that you can determine the success of your ads. Otherwise, it is hard to measure whether or not the ads are working.
#2 Con
Don't be surprised to spend alot in PMAX if you are not set up properly. If you have a "good" ad status or not enough creative assets then your ads will run but not produce well for you. Google recommends, “an average daily budget of at least three times your CPA or cost per conversion for the conversion actions selected for your campaign. Generally the budget should be consistent with other well-performing campaigns in your account.” Basically, don't try and run a PMAX along with other performing campaigns if you are not properly set up with creative assets and audiences as well as a competitive budget to your other campaigns. If you are unable to do this a basic display/remarketing campaign is recommended.
#3 Con
PMAX works best along side other campaigns if you utilize it to be super streamlined the services you offer. For example, if you run campaigns utilizing 5 of your services, try using PMAX for 1 and be very particular with your keywords and headlines. Make your audience signals very focused instead of broad. Allow your search campaigns to appeal to the masses then your PMAX appeal to the niche. If PMAX is the only campaign you are running the sky is the limit. I just recommend it be set up properly with an excellent status and a budget of atleast $50/day.
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