Google’s Performance Max Campaign: Is It Worth It for Small Businesses?

It’s been a while since I last wrote about Google’s Performance Max campaigns, so I thought it was time for an update. The big question I want to explore here is whether they are worth it for small businesses.

Think of Performance Max as a self-driving car. In theory, it should get you to your destination smoothly, adjusting along the way based on traffic, road conditions, and your preferences. But just like self-driving technology, some people feel uneasy about handing over control. Is it truly as efficient as Google claims, or will it take you on a few unnecessary detours? Let’s find out.

In this blog post, I’ll revisit Performance Max campaigns and briefly explain how they work. I’ll also explore why some advertisers remain hesitant, the scenarios where Performance Max has worked well, and what you need to do to get the most out of it. Additionally, I’ll highlight situations where this campaign type might not be the best fit and touch on other Google Ads campaign types that may be better suited for small businesses.

1. What is a Performance Max Campaign?

Performance Max is an all-in-one, fully automated campaign type from Google. While it’s been around for a few years, it’s still relatively new, and many small businesses haven’t fully adopted it. That said, Google has been actively pushing advertisers to use it.

Imagine you’re cooking a meal. In a traditional campaign setup, you’re the chef - you pick the ingredients (keywords), follow a recipe (structured bidding strategy), and adjust seasonings as you go (manual optimisations). Performance Max, on the other hand, is like a meal kit delivery service that promises a gourmet experience with minimal effort. You provide the ingredients (assets like ad copy and images, audience signals, and conversions), and Google handles the cooking. But just like with those meal kits, sometimes the result is exactly what you wanted, and other times, it doesn’t quite hit the mark.

Unlike traditional Google Ads campaigns, which are separate for search, shopping, display, and video, Performance Max combines them all under one campaign. Instead of manually selecting keywords, you provide Google with a range of assets, including videos, ad copy, product feeds (if applicable), and images. You also set keyword themes to guide Google on what your campaign is about.

A key feature of Performance Max is audience signals. These signals help Google understand who to target and include:

• Keyword themes
• Google Analytics and conversion data
• Custom audience segments
• In-market audiences
• Retargeting options for existing or new customers

Another crucial element is conversion tracking. To get the most out of Performance Max, you need to define your key conversion actions, such as contact form submissions, phone calls, or online sales. With the right data, Performance Max can optimise performance over time.

2. Why Are Some Advertisers Hesitant?

Despite its potential, many advertisers have (for good reason) reservations about Performance Max, primarily due to three factors:

Lack of Control

One of the biggest concerns is the limited control over keywords. Unlike standard search campaigns, where you can choose exact match, phrase match, or broad match keywords, Performance Max relies on keyword themes. This can lead to wasted ad spend on irrelevant traffic.

Limited Data Insights

Google provides performance insights, but they aren’t as detailed as some advertisers would like. For example, while you can see which assets generate the most impressions, you don’t get a breakdown of which combinations drive the highest conversions. There are ways around this, like creating separate ads with pinned headlines, but for small businesses, this adds extra work.

Automated and Limited Bidding Concerns

(At the time of writing) Performance Max currently offers just two bidding strategies:

• Maximise conversions
• Maximise conversion value

Both rely heavily on accurate conversion tracking. If your tracking isn’t set up correctly, your campaign could struggle to deliver meaningful results.

3. When Does Performance Max Work Well?

From my experience, Performance Max tends to work best in specific scenarios:

E-commerce

Because bidding is so conversion-focused, e-commerce businesses generally see the best results. Running Performance Max alongside a standard shopping campaign can often increase sales, although the exact mechanics behind this aren’t always clear.

Broad Audience Targeting

If your business targets a wide audience rather than niche segments, Performance Max can help you reach potential customers across multiple ad placements without setting up individual campaigns.

Businesses with Strong Creative Assets

Since Performance Max relies on a mix of text, image, and video assets, businesses with high-quality creative content tend to perform better. The more assets you provide, the better Google can optimise your campaign.

In my experience so far, lead generation results have been mixed. Remarketing seems to work best, but performance often drops significantly if you restrict targeting to new customers only.

4. How to Make the Most of Performance Max

If you’re considering running a Performance Max campaign, here are some tips to improve your chances of success:

Use Audience Signals Wisely

There are differing opinions on how much data to feed into Google. Some say giving too much data (like Google Analytics information) turns the campaign into a pure remarketing effort. Others believe providing as much information as possible helps Google optimise faster. My recommendation? Test different approaches and see what works for your business.

Experiment with Different Assets

Providing multiple variations of images, videos, and text allows Google to test combinations and find what resonates most with your audience.

Integrate with Other Campaign Types

For example, running a feed-only Performance Max campaign alongside a standard shopping campaign has yielded positive results for my e-commerce clients. If you have the budget, it’s worth testing this strategy.

5. When to Avoid Performance Max

Performance Max isn’t for everyone. If you:

• Have a tight budget and need to control spend carefully
• Want precise targeting based on specific keywords
• Require in-depth data insights to optimise manually

...then a traditional search or shopping campaign might be a better fit.

For example, if you sell office chairs and only want to target searches for specific materials or styles, Performance Max at the moment won’t give you the control needed to refine your targeting.

6. Alternative Campaign Types for More Control

If Performance Max doesn’t seem right for your business, here are some alternative Google Ads campaigns to consider:

Standard Shopping Campaigns

These campaigns display your product listings in Google Shopping. They require a product feed in the Google Merchant Center, allowing more control over bidding and targeting.

Search Campaigns

With search campaigns, you can select exact, phrase, or broad match keywords and write ad copy tailored to your audience. This is the best option if targeting specific search terms is important to your business.

Display Campaigns

These show visual ads across the Google Display Network (third-party websites). They’re great for brand awareness and remarketing.

Video Campaigns

Video ads on YouTube can be used to showcase your products or services. They can be targeted based on keywords, interests, or specific YouTube channels.

Final Thoughts

Performance Max campaigns can be a valuable tool, particularly for e-commerce businesses. However, they require careful setup and ongoing optimisation. If you’re a small business with a limited budget and need more control over targeting traditional search and shopping campaigns might be a better fit for you.

Think of it like hiring a personal assistant. If you give them clear instructions, access to the right tools, and monitor their progress, they can handle tasks efficiently. But if you just hand them vague instructions and hope for the best, you might not get the results you were expecting.

Need help getting the most out of your PPC campaigns?

Whether you're considering Performance Max or sticking with traditional search campaigns, the key is strategy and proper setup. If you'd rather not leave it to chance, let's chat.