Performance Max Optimization: Beyond Google's Defaults
Performance Max can deliver results, but only if you know how to structure asset groups, exclude branded traffic, and maintain control. Here's how.
The Truth About Performance Max
Performance Max (PMax) is Google's most automated campaign type, running across Search, Shopping, Display, YouTube, Gmail, and Maps from a single campaign. Google positions it as a simple solution—upload assets, set goals, and let AI do the work.
The reality is more complicated. PMax can deliver strong results, but only if you understand what's happening under the hood and take steps to maintain control.
What Performance Max Actually Does
Inventory Access
PMax runs across all Google inventory:
- Search (including Dynamic Search Ads)
- Shopping (replacing Smart Shopping)
- Display Network
- YouTube
- Gmail
- Maps
- Discover
Automation Level
PMax handles:
- Bidding (required to use automated bidding)
- Targeting (based on your audience signals)
- Creative combinations (mixing your assets)
- Placement decisions (where ads appear)
What You Control
- Asset inputs (images, videos, headlines, descriptions)
- Audience signals (suggested audiences, not requirements)
- Budget
- Geographic and language targeting
- URL exclusions
The Problems with Default PMax
Brand Traffic Cannibalization
By default, PMax will happily spend your budget on people searching for your brand name. These are conversions you'd likely get anyway through organic or cheaper branded search campaigns.
Solution: Add brand exclusions at the account level (now available in Google Ads settings). Also maintain separate branded search campaigns to ensure coverage.
Limited Visibility
PMax reporting is notoriously opaque. You can see overall performance, but understanding which assets, placements, or audience segments drive results is difficult.
Solution: Use the Insights tab religiously. Create asset group-level reports. Use URL parameters to track placements in Analytics.
Quality Traffic Concerns
Some PMax placements (certain Display Network sites, mobile apps) drive low-quality traffic. Without placement reports, you can't easily identify and exclude these.
Solution: Monitor time-on-site and bounce rates by campaign. If PMax traffic behaves poorly, you likely have placement quality issues.
Performance Max Best Practices
Asset Group Strategy
Don't dump everything into one asset group. Create distinct asset groups for:
- Different product categories
- Different customer segments
- Different messaging angles
This gives you better insights and allows the algorithm to optimize within themes rather than across unrelated products.
Audience Signal Setup
Audience signals tell Google who to prioritize, though they're suggestions, not restrictions. Include:
- Your customer match lists
- Website visitor segments
- In-market audiences relevant to your products
- Competitor interest signals (when applicable)
The stronger your signals, the faster PMax learns.
Creative Asset Best Practices
Images:
- Provide multiple aspect ratios (1:1, 1.91:1, 4:5)
- Include product images and lifestyle shots
- Test images with and without text overlay
Headlines:
- Use all 15 headline slots
- Include keyword variations
- Test benefit-focused vs. feature-focused
Videos:
- Include at least one video if possible
- Vertical (9:16) for YouTube Shorts
- Horizontal (16:9) for in-stream
Budget Considerations
PMax needs sufficient budget to learn across all placements. Google recommends budgets 2-3x your target CPA at minimum. Under-budgeted PMax campaigns often underperform.
When to Use Performance Max
Good Fit
- E-commerce with product feeds
- Lead generation with sufficient conversion volume
- Businesses wanting to expand beyond Search
- Accounts with strong first-party data
Poor Fit
- Very limited budgets
- Industries requiring tight placement control
- Businesses with long sales cycles and few conversions
- New advertisers without historical conversion data
Performance Max vs. Standard Campaigns
Should you replace everything with PMax? Generally no. We recommend:
- Maintain dedicated Search campaigns for highest-value keywords
- Keep branded Search separate with brand exclusions on PMax
- Use PMax as expansion alongside core campaigns
- Monitor for cannibalization between campaign types
The Bottom Line
Performance Max isn't magic—it's automation with trade-offs. Success requires understanding what you're giving up (control, visibility) and actively managing what you can (assets, signals, structure).
Done right, PMax can expand your reach efficiently. Done poorly, it wastes budget on low-quality inventory while cannibalizing your own branded traffic.
Want help setting up Performance Max correctly? Our [Google Ads team](/services/google-ads) can structure PMax campaigns that actually grow your business.
