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A Simple Guide To Google Performance Max Campaigns For Your Business

A Simple Guide To Google Performance Max Campaigns For Your Business
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Performance Max is the latest Google Ads, uh, campaign type, which Google released late last year. It is the buzzword at the moment with all marketeers and advertisers. So in today's session I'm going to show you how to set up the Performance Max the right way, what you need and what you should look out for to get that Performance Max working right from the, uh, day, from day one.

Hello, my name is Uzair, and thanks for joining in. It is 12th of May, 3pm, um, in the afternoon in the UK. I'm glad it's, it's a Friday, and hope you had a great weekend. So I'll start off with setting up the Performance Max, as to how we can go about setting it up, and towards the end of the session, if there are any questions, I will try my best to answer them for you. So let's get the show on the road. I just want to make sure everything is working fine, which it is, and yeah, that seems to be working fine today, and we shall get started.

Okay, um, so what is Performance Max? Following on my last session, which I talked about the Performance Max campaign, just to recap very quickly, this campaign type is one of the easiest ways to set up and run a Google Ads campaign. It has got text, display, video, Gmail, Maps and shopping, all six different types of campaign ads in one campaign.

So what does that mean for you? Well, it's six times less work, because if you are running a search, display, video, Gmail, shopping campaign, you will need to have separate campaigns, and that's what we've been taught all, um, all the way through: keep different campaigns, different campaigns for different types, in, uh, completely separately. So we don't mix display with search, we will never mix video with search and so on. This has turned things around, well, upside down on its head. You just need one campaign.

And the other thing is, if you struggle with keywords, match types, negative keywords and so on, it's great news for you. There aren't any. Uh, you just need to set up the audiences, and there are no more keywords to worry about. So let's go into our ad account and get started.

So you go, click new campaign, and depends on what campaign objective it is. Let's say sales. Then you have your conversion goal as purchases. Continue. I'm just making sure my screen fits your screen. Okay, that's a bit better. Then we have the campaign type. Here you want to pick up Performance Max. Put in the campaign name. This is a test campaign that we're running right now. And I don't think you can see the continue button, but it's just over here along the bottom on the right hand side. And start new, because I was doing a test one before.

All right, now on the left hand side, I'll need to keep juggling these around a bit. What Google have done is super simple and super smart. Now you know that you're at this stage. You got budget, you need to do bidding, campaign settings, asset group, extensions and summary. So we're going to go through each step, uh, one, one at a time, and go to the summary, where we are going to set up the campaign. Budget, I'm just going to keep it 1.1 pound.

Bidding. Now, conversions will focus on target, uh, CPA, or target's cost per acquisition, and the conversion value is going to set up for, to optimise for target ROAS, return on ad spend. So as we are running a ecommerce campaign, we will set up conversion value. If you were running lead generation, then you will set up a conversion.

Now, in here you can also set up a cost per action or cost per acquisition, which is optional. If it's a brand new campaign, I would not put anything in there. Let Google loose, bid aggressively. Initially the cost per conversions will be a bit high, but as the campaign starts to get the pace, you are going to see that the conversions are coming in at a really good price, and then you can put in a target CPA of whatever you want.

And the same with the ROAS, return on ad spend. Don't put a target ROAS. It's going to default to the 200 percent in Google Ads. So if you want to aim for 400 initially, when you've got zero data in it, don't put anything here. Leave it blank. Now, if you have got any questions, then please put them in the comment box or the question box around the video. This is being live streamed on YouTube, LinkedIn, where, as well as Twitter and Facebook.

And one thing which I did forget to mention when I started is, I'm going to be in New York on the 23rd of May and speaking at the Shopify meetup in New York by Merchant Mastery. We've got some amazing, amazing speakers, and if you are into e-commerce, then this is an event which you do not want to miss out on. We've got Scott, Simon from Merchant Mastery and Socialite, two of the most smartest marketeers for e-commerce businesses.

So if you want to really take your business, or I should say turn your hobby into a business, then you need to come and speak, listen to these guys. Courtney is going to be there as well from Merchant Mastery, and Nicholas from Recart, and I'll be talking about Google Ads.

And in September, I'm very pleased to announce that I will be speaking at the amazing Traffic and Conversion Summit, and that is from the 25th, or 27th to the 29th of September this year, and we've got some amazing speakers at this event, and this is going to be held in San Diego. I'm going to put the links afterwards under this video, so you can, um, go and check it out and hopefully make it to these wonderful events.

All right, let's go back here. So if it's, well, when you're setting up a campaign, it is a brand new campaign, don't put target conversion value or target CPA. Leave it blank. Let Google loose. Then we go on to locations. All countries, United Kingdom, or enter your location if you want to be running your ads around a certain radius. So let's say I'm in Leighton Buzzard and I want to target a 20 mile radius. I can just target that area and save it. Languages, for me English is fine, or you choose whichever language you want to target.

Then don't miss this one out, because quite often you will find that many people, when setting up a campaign, miss this one out. More settings. Ad schedule. So for an e-commerce business, yeah, 24/7 is fine, but if it's a lead generation and you just want people to see your ads during the daytime when you're open, then you can set up the schedule. Start and end dates.

Um, this is really important, and this is brand new. I'm going to zoom in a bit so you can see it a bit better. Okay, so you got two options. This is extremely important. Uh, this can pretty much make or break your campaign. Switch on or switch off. On means send traffic to the most relevant URLs on your website, which Google thinks it's relevant for that ad or for this campaign. It can also pick up some pages like privacy, terms and conditions, blog and all of those.

Now, if you are using this, then what you, you should do and must do is exclude those kind of non, uh, money making pages or non-converting pages. Right, put the URLs in here, should you decide that, okay, I'm just going to leave it to Google. It can read my website, it can see which is the relevant product to that relevant person. I prefer to send it to the URLs which we set up in our campaigns, so I will switch it off, and yeah, Google is going to say consider URL expansions, but it's entirely up to you. But for me, I'm going to switch it off for now. Actually, we all covered, and then we go next.

Now we are going to go through the asset ad group. So it's not called an ad group, it's called an asset, asset group, I should say, and if I do say ad group, it means asset group, because we're so used to saying ad groups in Google Ads. So one more thing to remember. Now, name your ad group name. So what we tend to do is to set the name of the audience. Yeah, if I'm targeting in-market audience, let's say in-market SEO and SEM, which we have, which I know they are, I would set that up.

Try to set up just one targeting per asset group and then have multiple asset groups. Then you can see which ones are working, which ones aren't working. Don't try and put 10 different audiences in the same one. Now, you saw that we've just jumped from campaign settings straight into asset group or ad group setup. There's no keywords, right? So this is critical. So you can test as much as you want. You can create custom audiences and so on, or custom segment. I'll show you in a minute.

Now, many marketers, agencies or freelancers are pretty scared as to, this will take away their livelihood. Why should a customer come to you to run the ads when it's so easy? Like I've just shown you, in five minutes, set up a campaign, and now you're on creating the ad. This is where the men are going to be separated from the boys, because this is where you are going to make or break your campaign: the creative side. You need images, you need, um, the text obviously, and the videos, and with video marketing you can take that campaign to that next level.

So what you want to do is to, as it says over here, um, images, add up to 20 images, add up to five logos and add up to five, uh, videos. I'll click image, plus image, and then I'm going to go to upload. You can also scan your website, or if you've got an asset library, you can choose from there. I'm gonna go upload, and I had created some. Now you can see over here, this is an, this is a square shaped image. This is a horizontal one. Square. Uh, where is my vertical? Oh, there you go, vertical one as well.

So I've created a handful of these just to show you guys. Select all of them, open. So you got 15. I've only selected a handful, but maximise. Why not upload 15? Put some effort in it to create these kind of images. It's super simple to use something like Canva, and this is what we use. As you can see, we use this on a very regular basis. We've got literally hundreds of these custom images over here, and you can create that and export them as either square.

Let's say if you, if I click on here and I want to resize this into a horizontal one, I can change that and resize. Now it has become. All I need to do is to rejig. See how quick this is. If I want to resize my name, my face or the headshot, there you go. If I want to do something like that, you can do whatever you want, but you get the gist. So that's done. Horizontal took me literally less than a minute, and if I want to make that into a vertical one, and I would do the same thing. It literally takes seconds. Done.

Right, so Canva is absolutely brilliant. We have the paid version, but the paid version is like 10 to 12 dollars per month. It's worth paying for it, or you can use the free version. Uh, it's entirely your choice. Okay, so once I've uploaded these, uh, sometimes you do get this message that some of your images aren't selected because we couldn't determine the best aspect ratio. So then just choose, uh, go into it and uncheck them. I think this one, it can't see there's a vertical one. So just reset, resave it, resize it, upload it.

So I've just uploaded a handful over here. Then you do the same with your logo and then with your, uh, video. So if I were to, let me see if I can upload my live stream for today. Does it recognise it? There you go. So I've gone. So you can put in your channel URL. I've got loads of these videos in here. Four, five. See how long it took me? Literally seconds, right?

The beauty with this is, you start to see the preview over here. You've got YouTube, yeah, Gmail, search, display and Discover, how your ad is going to look over here. As many images and videos as you possibly can, because that's how Google will be able to mix and match the various combinations. You can see at the top over here, the image, because I've only uploaded 5 out of 20, is giving me a half icon, that we need, you can add some more, whereas the video has got that full blue icon with the tick mark in it. That means I've completed this.

Now I need to move on to the headlines and the descriptions. Right, so I have got these pre-written to save some time. I forgot the URL first of all, so set up the final URL, because that's where I want the traffic to go to. Headlines, and is this the usual 30 characters long headline. It says five headlines. So I'm running this, let's say I'm running this for myself, um, to advertise my Google Ads Like A Boss coaching program. So this is how I will write my ads, with different headlines.

Okay, then there are five long headlines, which is 90 characters long. I don't know why they don't just say descriptions, but because of the different sizes, sometimes it will just take a headline for a smaller sized image, sometimes it's going to take a longer headline for a bigger size ad. So long headlines are up to 90 characters. Well, pretty much they are similar or same like description, but obviously you want to keep it different. Uh, copy and paste these. So if you have any questions, please start putting them in, because I will tend to them once I finish setting up this campaign.

So now we can see on the right hand side some of the images, or ads have got the image, some have got just the text, some will even have the video in it, like this one, and this is how good this format is. Now we got one description of 60 characters long, and then we've got five descriptions of 90 characters. Just the last few left. I want to set this up properly so you can see the ad strength as well.

Now, as you start entering the text, you will see along the top of the page the ad strength has gone to average. You want to have at least good or excellent. Now, because I haven't uploaded more images, I won't get any better than this, but over here I've got headlines is check mark, tick mark, as well as the description.

I can see my, you, YouTube ads over here like this, with the video. Gmail, the closed one will look like that. When they click on it and they open up, is going to look like that. Search campaigns is going to look like this, display campaign is going to look like this, and the Discover is going to be like that as well. I've set everything up.

The last couple of items is the call to action. If this was, uh, e-commerce, we want that to be shop now. If it's a lead gen, you can use learn more, apply now, or if it's for an insurance company, get quote, sign up for a PDF or a download or whatever your call to action is. For now I'm just going to use learn more. I'm going to put in SF Digital Studios as our India.

Then don't forget this little more options over here as well, because over here you've got the opportunity to put in some more keyword to make your ad more relevant. So if I go back to my search campaign, it's going to go here: digital marketing. You don't need to have that URL set up in your final. As this says, it's a display path. It's only for display purposes and not for actual URL, about the final URL, because the final URL is right at the top over here.

Okay, now the next important bit, because there's only two things which you need to do: write the ads and set up the custom audience or the audience signal. And, and now we have got create an audience. Enter the name. I'll do that in a minute. You

If you’re looking to boost your sales and get more value from your Google Ads without needing to be a tech expert, you might want to consider Performance Max campaigns, also known as PMax.

Think of PMax as an advanced tool that uses Google’s smart computer brain (Artificial Intelligence or AI) to automatically manage your advertising across many different places on Google.

What Performance Max is and How it Works

Performance Max is a type of Google Ads campaign designed to help you reach more potential customers, automate managing your ads, and drive sales or leads.

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What makes it special is that it combines smart ways to decide how much to pay for ads (bidding) and smart ways to find the right customers (targeting) into one single campaign, based on the goals you set. It works across the entire Google network.

Google’s smart system automatically figures out where and when to show your ads across all its different channels.

Where Can Your Performance Max Ads Show Up?

Your ads can appear in many places across Google:

  • On YouTube videos
  • On websites that show Google Display ads
  • When people search on Google (like regular Search ads)
  • When people are shopping on Google
  • In the Discover feed on Google’s mobile app
  • In Gmail inboxes
  • On Google Maps

The smart system automatically adjusts your ads for each place. It uses machine learning to decide when and where to show your ads to the right person at the right time. This means you can run ads across many different places using just one campaign.

How Your Ads Are Created and Optimised Automatically

Your job is to provide Google with different creative elements like images, videos, your logo, and the words you want in your ads (called ‘ad copy’).

Performance Max then automatically creates different versions of your ads using these pieces. It tests which combinations work best to get you more sales or conversions. The more creative bits you give it, the more types of ads it can create to show across Google.

Automated Bidding and Budget

PMax uses its smart system and automation to get you the most sales or conversions for your budget. This is done using ‘smart bidding‘. You can’t manually set your bids.

However, you can guide Google’s system by telling it what you want to achieve:

  • If different sales or goals are worth different amounts to you, you can focus on getting the most Conversion Value (by setting a target for your return on ad spend, or ROAS).
  • If all your goals are worth the same, you can aim to Maximise Conversions (by setting a target cost per action, or CPA).

Pro Tip: If you’ve run Google Ads before and have lots of data, you can start with a target ROAS or CPA right away. If you’re new, it’s better to start by trying to “Maximise Conversions” to let Google learn from your data. Once you’re getting conversions regularly, you can switch to setting targets.

AI (Artificial Intelligence) in Performance Max

AI is a big part of PMax. It helps the campaign run smoothly and find the best ways to reach your audience and get conversions.

Google is also using generative AI (AI that can create new things) to help you quickly create new headlines, descriptions, and even images for your ads. This makes it easier to try out different creative ideas. Google says you keep full control over any assets created this way.

Who Should Use Performance Max Campaigns?

PMax isn’t the right fit for every business, especially if you are brand new to advertising and don’t have any previous data on sales or leads. The system relies on data to learn and perform well.

However, Performance Max might be a good choice for you if:

  • You want to reach new types of customers. PMax helps you reach people across many places on Google.
  • You want to use advanced machine learning to gather data and improve your results.
  • You have more than one advertising goal (like getting leads, sales, or building brand awareness) and want to manage them in one campaign instead of many.
  • You are looking for low-maintenance campaigns. Once they are running well, PMax campaigns are quite self-sufficient, which can be great for smaller businesses or busy owners.

Pros and Cons of Using Performance Max

Like any tool, PMax has good points and bad points.

Benefits (Pros):

  • Easier to improve your ad campaign: It automatically adjusts your budget and bids to help you reach your goals faster. You set your budget and goals, and Google’s system handles the rest.
  • Potential to reach more people: Your ads can show across the entire Google network.
  • Finding new customers: PMax can help find new people who are likely to be interested in what you offer.
  • Saves time: Because Google’s system does a lot of the work, you, as the advertiser, have less manual work to do.
  • Keeps ads fresh: By mixing and matching your creative pieces, your ads can look different and stay interesting.
  • Can deliver great results: Some businesses have seen significant increases in sales and revenue after using PMax.

Drawbacks (Cons):

  • Limited insight: It can be hard to see exactly how your budget is being spent on different channels or whether it’s reaching new people or just existing customers. You might get good results but not know exactly why, or see performance drop suddenly without a clear explanation.
  • Can ‘cannibalise’ other campaigns: Because PMax covers a wide range of ads, it might end up taking credit for sales that your other ad campaigns (like your regular Search ads) would have gotten anyway. This makes it tricky to figure out the real extra value PMax is bringing. PMax can also include retargeting and dynamic search ads, potentially making separate campaigns for these unnecessary.
  • Poor visibility on search terms: It’s not as easy to see the exact search terms that triggered your ads compared to traditional Search campaigns. While Google now provides some information on “search themes” and terms, it’s less detailed.

How to Set Up Your Google Performance Max Campaign (Simplified Steps)

If your main goal is online sales, here’s a basic idea of the setup process:

Prepare Your Product Feed

Prepare Your Product Feed

If you sell products, you need to set up a product feed in Google Merchant Centre. This is like giving Google a list of all your products with details like titles, prices, and images. PMax will use all this information to create your ads. Making sure this product list is well-optimised is very important. Add as much detail as possible for each product.

Choose Your Goal

Choose Your Goal

In Google Ads, you’ll start a new campaign and pick your main goal, like “sales”.

Confirm Your Conversion Goals

Confirm Your Conversion Goals

Tell Google which actions you want to count as successes (like a sale or a lead). Select “Performance Max” as the campaign type. Link your Merchant Centre account if you have one. Name your campaign.

Set Your Budget and Bidding

Set Your Budget
Bidding

Enter how much you want to spend on average each day. Choose your bidding strategy based on your goal: Maximise Conversions (with a target CPA if you want) or Maximise Conversion Value (with a target ROAS if you want). Google will then automatically adjust bids to meet your goal. You can also choose to bid differently (usually higher) for new customers if you have a way for Google to identify existing ones (like a customer list).

Set Location and Languages

Set Location And Languages

Choose the areas and languages where you want your ads to show. You can choose to target specific cities or regions. You can also adjust when your ads show throughout the day or week if you find certain times are more profitable.

Think About Automatically Created Assets

Automatically Created Assets

By default, Google might be allowed to create text for your ads or change the webpage link (Final URL) based on your website content. If you want more control, it’s a good idea to switch these off. You can also tell Google to avoid certain pages on your website.

Add Your Assets (Creatives) and Product Groups

Add Your Assets And Product Groups

If you have a product feed, adding creative assets (images, videos, text) is optional, but recommended to improve performance. You must confirm your listing groups, which tell Google which products from your feed are included in the campaign. You can include all products or select specific ones. An Asset group is where you put your creative assets and audience hints together.

Review and Publish

Review And Publish

Check a summary of your settings and launch your campaign.

Useful Performance Max Features

  • Ad Assets: These are extra bits of information that can be shown with your ad to make it more helpful and noticeable, like your phone number, links to specific pages on your site (sitelinks), or your business location. Adding these can help your ad show up higher.
  • Audience Signals: You can give Google hints or suggestions about the types of people most likely to convert. This helps guide Google’s smart system, but the campaign might still show ads to people outside these suggestions if it thinks they will help you meet your goals. You can suggest audiences based on their interests, what they’ve searched for, or even using lists of your own customers.
  • Insights Tab: While reporting can be limited, this tab can show you which search terms or audience types are performing well after your campaign has been running for a while. It can also show if your campaign is focusing on searches for your brand name or finding new searches.

How to Improve Your Performance Max Campaigns

Even though PMax is automated, you can still do things to help it perform better:

  • Optimise Your Product Feed: For retail campaigns, this is crucial. Make sure your product list is detailed and well-structured. Things like using recommended structures for product titles, adding missing information, and using ‘custom labels’ to group products how you want can make a big difference. AI tools can also help with this.
  • Campaign Structure: You can create multiple PMax campaigns for specific products or categories to give you more control, but keep in mind that Google recommends a minimum number of conversions per campaign for the system to learn effectively.
  • Asset Group Structure: Within one PMax campaign, you can create multiple asset groups (collections of creative assets) for different products or audiences. Each group can have different images, text, etc.. It’s best if each asset group focuses on different products to avoid overlap.
  • Optimise Individual Assets: Look at the ‘Asset detail report’ to see how your individual creative pieces (images, text, videos) are performing. Replace low-performing ones and aim to have several “Best” performing assets.
  • Use Your Own Videos: If you don’t provide videos, Google will automatically create simple ones. These might not be high quality. It’s better to upload your own if you can.
  • Exclude Your Brand Terms: As a best practice, you generally don’t want your generic PMax campaign to show up for people searching for your specific business name (branded terms). These searches often convert easily, and PMax might focus on them instead of finding new customers. It’s better to use regular Search campaigns for branded terms. Currently, you usually need to contact Google support to exclude terms, as you can’t do it yourself directly in PMax.
  • Control Where Traffic Goes (Final URL Expansion): PMax can automatically send visitors to the most relevant page on your website. You can choose to either let Google do this (and exclude pages you definitely don’t want ads to link to, like ‘About Us’) or only allow traffic to go to the specific pages you provide or the product pages in your feed. Turning off the automatic option gives you more control.

Specialised Performance Max Strategies

Google also offers specific versions of PMax for certain types of businesses:

  • For store goals: Designed to help businesses get more visitors and sales at their physical shops. You link your business location details, and Google helps promote your stores across its network.
  • For travel goals: Helps hotels advertise effectively to people looking to book rooms. You link your hotel information, and Google helps promote your hotel across its channels.

Important Things to Do for Best Results

  • Accurate tracking is key: Since PMax is automated, it’s absolutely vital that you are accurately tracking your sales or other goals (conversions). This data is what Google’s system learns from.
  • Focus on your most valuable goals: Tell PMax to optimise for your most important conversions, like sales revenue.
  • Don’t duplicate images: If you’re using a product feed, your product images are already included. Don’t add these same images again as separate assets. Instead, add new, different images like lifestyle shots.
  • Be careful with location settings: By default, PMax might target people interested in your location as well as those actually in it. If you only want to reach people physically in your chosen areas, make sure to select the “Presence” setting only.

In Summary

Performance Max is a powerful Google Ads campaign type that uses AI to help businesses get more conversions and conversion value by advertising across all of Google’s channels from a single campaign. 

It automates bidding and targeting to save you time. While it offers great potential for increased reach and simplified management, it does mean you give up some control and visibility compared to older campaign types. By providing good data (especially a well-optimised product feed) and following best practices, you can help Google’s smart system work best for your business.

Performance Max can be an effective tool, but its success depends on your specific business goals and the quality of the information you provide. It’s always a good idea to test it out for yourself.

Uzair Kharawala

Written by Uzair Kharawala

Partner at SF Digital Studios, a Google Premier Partner agency. Uzair has been helping businesses grow with Google Ads since 2002 and teaches it every week on YouTube.

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