Visable 360
The B2B magazine for digital sales
Visable 360
The B2B magazine for digital sales

Performance Max – the autopilot for Google Ads

More space for creative and strategic tasks within pay-per-click management is provided by Performance Max. To achieve this, Google’s campaign format relies heavily on artificial intelligence (AI) and automated processes. This makes it easier to display ads in the Google universe.

Google building

Photo: Alex Dudar/ Unsplash

A campaign format that relies on automation

The work within pay-per-click (PPC) management often involves monitoring individual ads and campaigns, and optimising these by fine-tuning them. This takes time and eats up productivity, both of which could be used for strategic tasks. This is where Google’s campaign format Performance Max comes in. Thanks to smart bidding and lots of automation, it simplifies the publication of Google Ads – thus, taking over PPC management tasks.

Performance Max enables advertisers to broadcast a single campaign ad across all channels of the Google universe. These include:

 An essential goal of the Performance Max format for Google Ads is to support keyword-based search campaigns and address more converted customers. The starting point is automated technologies, which Performance Max leverages for the areas of bids, budget optimisation, target groups, creatives and attributions.

 Behind this is an algorithm which supports campaigns thanks to the use of AI and machine learning. For instance, it focuses on criteria such as budget, business goals or conversions, which the advertiser has predefined. The Google Ads automation then searches for the right recipients based on these criteria and presents them the right ads on the right channels.

The user can choose between different campaign goals and feed Performance Max with content (e.g. text, pictures, videos). What’s more, they can select which kind of conversion they prefer.

 How this works, can be roughly summarised in six consecutive steps:

  1. Define conversion goals and values
  2. Determine budget and bidding strategy
  3. Activate the expansion of the final URL for more conversions during relevant searches
  4. Upload creative assets or content
  5. Enter target group signals to steer automated targeting
  6. Add ad expansions

 The analysis of the campaign then takes place afterwards.

Tests show: average increase in the conversion rate by 12 per cent

Performance Max is especially suitable for Google Ads if enterprises want to

  • achieve clear advertising and conversion goals such as increasing online sales or generating leads;
  • communicate campaigns optimally, without focusing on just one channel;
  • display Google Ads potentially across all Google channels; and
  • follow keyword-based search campaigns in addition to reach and conversion values.

According to Google, Performance Max boosts the conversion rate by 12 per cent, with an unchanged or improved Return On Ad Spend (ROAS).

Upgrade for 2022

New since January 2022 is the campaign type of winning new customers. With the help of this upgrade, enterprises and brands can boost their market share. The Google Ads format offers two options for achieving this: on the one hand, a certain additional value can be provided for the initial conversion of new customers. This increases the overall sales margin and generates more new customers within the campaign. On the other hand, ads can be displayed solely for potential new customers.

Ongoing smart shopping campaigns or local campaigns should first be continued to be used, says Google, and be transferred to Performance Max later in the year.

Concretely: from April, enterprises can switch their shopping campaigns over to Performance Max campaigns using the One-click tool. This expands both the selection of available channels (YouTube, Search, Discover) and the range of assets. For local campaigns, this will be possible starting in June.

Between July and September, the transformation of the campaign into the Performance Max format takes place automatically. New smart shopping or local campaigns according to the old format can then no longer be generated.

PPC management should deal with the new offer in connection with Google Ads as soon as possible. Google offers a webinar, amongst others, to get ready for the upgrade.


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