The Ultimate Guide to Google Ads Performance Max Campaigns in 2023

Performance Max Asset Groups and the Ideal Campaign Structure

Performance Max’s asset groups are similar to ad groups and responsive search ads. Like RSA, you provide the ad assets, and Google tests them to determine the winning combination.

Performance Max Asset Types

You can add plenty of assets to your campaigns, including logos and videos:

Videos are required. If you don’t upload a YouTube video of your own, Google will generate one for you.

Google’s video won’t be anything to write home about. Most of the AI-generated videos for pMax will look like a two-hour Windows Movie Maker project. So even if video isn’t your top acquisition format, hire a freelancer or use a tool like Lumen5. Don’t waste the click!

How to Organise Your Performance Max Asset Groups

If you target different audience segments (e.g. enterprises and small businesses), set up two campaigns rather than two asset groups.

Then, organise asset groups by audience signals. 

For example, you might target the audience’s search history with one asset group and demographics with the second.

Target the right intent level by mapping audience signals to your asset groups. If you try to optimise for different intent levels simultaneously, you’ll see lower performance across your campaign.

You’ll get significantly better results if you create different asset groups for different funnel stages:

• Top-of-the-funnel (unaware, targeted with previous searches or downloads)
• Middle-of-the-funnel (problem-aware but not thoroughly convinced, targeted with detailed demographics and interests)
• Bottom-of-the-funnel prospects (solution-aware, targeted with your first-party or remarketing data)

The key is not to mix them up. Remember: optimising for everything means not optimising for anything in particular.

Targeting with Audience Signals

Unlike traditional Google Ads, Performance Max campaigns have a combination of different audience signals:

• Custom segments (target prospects based on their search activity, app installs, website visits)
• Your own customer data (remarketing lists, CRM lists, Customer Match, etc.)
• Interests & detailed demographics (target prospects based on their demographic makeup, interests, life events, etc.)
• Demographics (gender, age, parental status, etc.)

For example, if you’re a real estate agent, you could target people who recently visited websites like Zoopla or Zillow with custom-segment targeting. Yes, even if you’re not the website owner!

How Do I Add Keywords to Performance Max Campaigns?

You can’t add keywords to Performance Max campaigns directly. However, you can add search terms under ‘custom segments.’

Keep in mind that your pMax ads may not be served to these specific audiences. Google employees say it’s best to use audience signals as starting points.

Then, the AI will find shared characteristics between your existing profitable audience and new audiences who behave the same way.

Ad Extensions

Performance Max doesn’t offer unique ad extensions but add all the relevant ones to get more SERP real estate. Don’t overdo it. Keep all the extensions relevant and ensure they match different asset combinations.

You Still Can’t Let Google Manage Your Campaigns for You

Performance Max is interesting, but it’s no substitute for thorough audience research.

You need to understand your primary audience to give Google the signals it needs to find other audiences ready to convert.

Don’t rush into new ad types without discussing your strategy with a freelance PPC consultant. New ad types are experimental, so be careful and double down on already profitable campaigns to maintain steady revenue.

You can always set aside a portion of your budget for new ad types and try them when you’re ready.

Remember that the key to your advertising success is a deep understanding of your buyer’s journey and a clear value proposition that sets you apart.

And once you’re ready to launch your pMax campaign, keep a close eye on it and optimise accordingly.

How to Optimise a Performance Max Campaign

Asset Optimisation

Performance Max displays asset quality scores. Check them regularly to remove assets rated as Low and learn from the Best assets.

Add unique creatives. There are many options, so it may get overwhelming, but your ad creatives are the foundation of your success. If you’ve been running your Performance Max campaign for a while, update your assets to promote new offers or test different ad copy.

How to Optimise Search Themes in Performance Max

You won’t get much data on keywords served per channel, and pMax won’t always honour your negative keywords. Still, review and optimise them as much as possible.

For example, if you see that your campaigns appear for terms that have no chance of generating leads, add them to your negative keywords list.

Always take Google’s suggestions with a grain of salt and stay on the lookout for obvious budget-wasters.

A/B Test URL Expansion

If you launched your campaign with a specific final URL, try letting Google select the landing page for you in a controlled experiment.

Add the necessary exclusions or exclude everything except the options you’d like Google to test.

How to Optimise Your Performance Max Campaign Structure

Optimise your campaign for the highest purchasing intent if you want to drive more sales.

Don’t cast a wide net unless you can wait to see results, as it takes 30-60 days for pMax to learn enough about your audience and start delivering higher ROI.

Unfortunately, Google doesn’t allow you to exclude bad placements. If some pMax placements don’t work for your business (e.g., YouTube or Display), optimise for the best-performing placements or consider running a traditional campaign.

Optimisation for eCommerce

Most of the advice in this guide applies to eCommerce. However, there are two significant differences:

1. Performance Max campaigns sync with your Merchant feed.
2. If you only upload your product feed (and no other assets like text, videos, or images), your pMax eCommerce campaign will be placed only on Google Shopping.

If a product is out of stock, update your product feed. Don’t waste clicks on products your audience can’t buy. Alternatively, link to similar products from the product page, especially if you have a close variant of the out-of-stock product.

eCommerce pMax Campaign Structure

Treat asset groups as product groups and make sure there’s no overlap. Group advertised products according to categories and sub-categories. 

For example, women’s Nike trainers can be one asset group with all their different variations, and women’s Adidas trainers another.

You can select products you want to advertise with the campaign. If some don’t fit the creative or simply don’t perform well in your Performance Max campaigns, remove them.

Custom Labels in the Performance Max Era

If you’ve previously used Smart Shopping, forget what you learned about product-level custom labels. Performance Max asset groups for eCommerce function as product groups; you won’t be able to add dedicated labels.

In general, Performance Max doesn’t offer the granularity you’ve seen with Smart Shopping, so tread carefully and don’t discount your other campaigns just yet.

Audience Signals for eCommerce

If your first-party data is granular (e.g. you sell women’s and men’s shoes, and you’ve separated your audience list according to their purchasing preferences), import it into Performance Max campaigns.

Since pMax removes optimisation options we’re familiar with, do everything you can on your end to have crystal-clear data.

If you don’t have first-party data, you’ll still have other audience signals you can use, including targeting people who visited specific websites or searched for certain terms.

Best Practices for Performance Max Campaigns

• Set up conversion tracking to know what’s working (and what’s not).
• Test different ad formats, including text, images, videos, and responsive display ads.
• Use your previous campaigns’ audience insights to scale what works through pMax.
• Regularly evaluate Google’s ad strength indicator and aim for “Excellent.”
• Align ad content with landing page content to increase your Quality Score and decrease your CPC.
• If you constantly run ads, rotate the creatives to prevent audience fatigue.
• Don’t auto-apply recommendations.

When Should You Use Performance Max Campaigns?

You might get disappointed if you approach Performance Max campaigns from the traditional Google Ads standpoint. pMax campaigns look simple on the outside, but you’ll find a complex machine once you dive into your ad account.

Should you let Google take over or spend more time analysing your campaigns?

The latter.

Work with the AI to find the best advertising fit for your business. Provide your initial research as audience signals, and then closely monitor your campaigns to ensure you see the highest possible returns.

Performance Max campaigns take time and consideration. I wouldn’t recommend them if you’re DIY-ing your advertising. There are still too many intricate details to make them first-timer-friendly.

But in the hands of a seasoned Google Ads professional, Performance Max can be a powerful revenue tool.

If you’d like to get more sales with Google Ads, get in touch with me. I’ve helped 1000s of business owners since launching the first Google Ads training in Europe in 2007, and I’d love to help you!

Ready to take the reins? Achieve rapid Google Ads success in 7 easy steps with your copy of my best-selling Google Ads book!