All You Need to Know About Google Ads Performance Max

What all the fuss about Google Ads Performance Max? Picture this: one campaign, powered by smart automation, that spreads across Search, YouTube, Gmail, almost everywhere. It sounds like magic, right? If you’re running ads and maybe even feeling a bit swamped by complexity, you’re not alone. This post breaks it down in plain terms, so you get what Google Ads Performance Max can do and whether it might just be the game-changer you’ve been looking for.

What makes Google Ads Performance Max different from other campaigns?

Overview of goal-based campaigns covering Search, Display, YouTube, Gmail, Discover, Maps.

So, what makes Google Ads Performance Max stand out? Think of it as having one campaign that plays everywhere: Search, Display, YouTube, Gmail, Discover, even Maps all at once. It’s like being at multiple billboards, TV screens, and inboxes without managing each separately. This “one-stop campaign” setup means you can focus on your goals, not juggling platforms.

And here’s the other cool bit: Google Ads Performance Max uses AI-powered smart bidding and asset automation to make decisions for you in real time. You tell it your goals, upload assets, and let Google’s AI handle the bidding, placements, and budget tweaks across all those channels, even shifting budget on the fly for better performance.

Why should Google Ads Performance Max be your go-to option in 2025?

How can Google Ads Performance Max bring you more conversions?

You know video rules the web right now. Advertisers who include at least one video in their Google Ads Performance Max campaigns see around 12 percent more conversions, based on internal data from Google. Whether you upload your own video or let Google’s AI tools whip one up, it’s a solid way to grab attention and nudge people to act.

Across the board, Google Ads Performance Max isn’t just about throwing ads everywhere, it’s about smarter AI-driven optimization and reaching broader inventory, so you can rest assured that your campaign has a better chance of reaching the right audience and generating clicks than before.

What hidden challenges might you face with Google Ads Performance Max?

While Google Ads Performance Max comes with a whole lot of benefits, harnessing this tool requires some getting used to. Many marketers refer to Google Ads Performance Max as a “black box.” Basically, you set it up, it runs, and hope that it works or maybe it doesn’t. But figuring out why can feel like solving a mystery without clues.

As some experts put it, AI tools such as this “automate nearly all aspects of digital ad campaigns… but buyers often can’t find out exactly what decisions the artificial intelligence implements”. The lack of visibility can make diagnosing issues feel like guesswork in case a campaign doesn’t really work.

There’s also another layer to the story: even when Google adds transparency features, control can still feel out of reach. Google’s new channel performance reporting is a step forward, but marketers may not have full control over said step. And yes, that means even with the new data, there’s limited opportunity to act directly on what you’re seeing, so you still might find yourself relying on trust over tinkering.

Google Ads Performance Max interface (Source: DataFeedWatch)

How do you set up Google Ads Performance Max for success?

What core assets and signals should you include?

The approach is pretty much the same as usual with crisp, eye-catching images, clear copy, logos that reflect your brand, and even videos if you can. These build a strong foundation so Google Ads Performance Max can mix and match what performs best. A top-notch product feed with accurate and relevant titles, descriptions, and data also comes in clutch to power better ad combinations.

Next up, give the AI a nudge in the right direction. Audience signals like age, preferences, or purchase history act as friendly hints to help the AI start delivering ads to the right people faster and more precisely. Just remember, they’re just suggestions, the system may still optimize beyond them.

Is adding video essential in Google Ads Performance Max?

You bet it is. Including at least one video in your Google Ads Performance Max campaign can lead to about 12% more conversions. That’s a pretty compelling stat if you’re looking to maximize results. And good news, you’ve got flexibility by either uploading your own video or using Google’s built-in video creation tool. Either way, having a video gives your campaign more creative lifeblood to run with. However, make sure to weigh the pros and cons of each method depending on what you want to prioritize: personal identity or efficiency.

Where to find Performance Max in Google Ads (Source: DataFeedWatch)

How much should you budget for Google Ads Performance Max?

AI needs room to learn so you should expect to invest some time into Google Ads Performance Max. Experts suggest starting with $50 to $100 per day during your campaign’s learning phase to give it the runway it needs to gather data and begin optimizing effectively.

Should you pre-optimize your product feed before launching?

Of course you should. Your product feed is basically the engine of your Google Ads Performance Max campaign. Make those titles readable and keyword smart, flesh out descriptions, and keep images and product availability up to date. A polished feed makes sure the AI builds from a clean, optimized slate so when the ads start to take shape, you’re already in a prime position to generate conversions.

How can you optimize and refine your Google Ads Performance Max campaigns?

So you’ve launched your Performance Max campaign, and now you’re wondering how to make it even better. Performance Max is a bit of a self-driving car, it can get you where you need to go, but you still need to set the destination and pay attention to what’s happening on the road.

How do you audit your product feed like a pro?

For many businesses, the product feed is the heart of a Performance Max campaign. If the feed is messy, your ads will be too. A poorly structured feed can lead to a lot of wasted ad spend and missed opportunities. Auditing your product feed isn’t just about checking for errors; it’s about making sure your data is as rich and accurate as possible.

Using especially those that leverage AI or even a simple ChatGPT audit, can help you quickly catch common issues like missing product identifiers, incorrect formatting, or outdated pricing. While a manual review is always a good idea, an AI can sift through thousands of products in seconds, flagging anomalies you might miss.

How do you interpret asset performance in Google Ads Performance Max?

The power of Performance Max lies in its ability to mix and match different creative assets to find the perfect combination for each user. But you can’t just set it and forget it. You need to become an expert at reading the Asset Performance report. This report is your direct line of communication with the algorithm.

Google’s system tags your assets as “Low,” “Good,” or “Best.” “Low” performing assets are likely dragging down your campaign and should be paused or replaced. “Good” assets are doing their job, but you can always try to improve them. The “Best” assets are your superstars. You should learn from these winners, analyze what makes them successful, and create new assets that are similar to them.

What to do to make sure your ads perform well

What’s the smart way to manage Final URL Expansion?

Final URL Expansion is a feature that gives Performance Max the freedom to send users to landing pages on your site that might be more relevant than the one you specified. This can be a huge win, but it needs to be handled with care. If you have an old blog post or a product page that’s out of stock but somehow still relevant to users’ queries, you don’t want the algorithm sending people there.

The key is to provide a comprehensive list of exclusions, which is like flat out telling Google’s algorithm which URLs or pages to avoid. Doing so enables you to prevent it from sending traffic to irrelevant or low-quality content.

Can you add negative keywords to Google Ads Performance Max?

The answer is a little tricky but a big relief for most advertisers. Yes, you can add negative keywords to Performance Max, but you can’t do it directly in the interface, at least not yet.

The only way to add negative keywords is by reaching out to Google support and having them manually add the list to your campaign. This is a bit of a workaround, but it’s a critical tool for preventing your ads from showing up for irrelevant search queries. You can also submit a list of brand terms to protect your brand and ensure your campaigns don’t compete with each other.

When is Google Ads Performance Max your best strategic play?

It’s a fantastic fit for ecommerce businesses or any brand with a robust lead generation system. Performance Max excels when you have a well-oiled conversion infrastructure. This means you have clear conversion goals set up in Google Ads, whether that’s a purchase, a form submission, or a phone call. The more data you feed it, the smarter the AI gets. It’s like having a team of experts constantly working to find the most profitable customers across all of Google’s channels.

For businesses that want to keep a tight rein on their branded search terms but still expand their reach, using Performance Max alongside your existing Search campaigns is a smart move.

Google’s official documentation clarifies that exact match keywords in your standard Search campaigns will always be prioritized over Performance Max. This means you can keep your branded terms and high-intent keywords in a highly-controlled Search campaign while letting Performance Max do the heavy lifting of finding new, high-value customers in other places like YouTube, Display, and Discovery.

Ultimately, this hybrid approach gives you the best of both worlds: granular control where you need it and expansive, automated reach everywhere else.

Best strategies for Google Ads Performance Max

What new controls and insights are shaping Google Ads Performance Max today?

Over the past year, Google has been listening to feedback and rolling out a bunch of new features that give marketers a lot more visibility and control. These updates are all about helping you find that sweet spot between the power of AI automation and the human expertise you bring to the table, which alleviates the worry about control that many marketers have.

There’s been a big push for more transparency with features like creative insights, which show you how your individual assets are performing. With this, you can finally see how images, headlines, and descriptions are resonating with customers so you can create more of what’s working.

Additionally, a new Channel Performance report is giving marketers a clearer look at how their campaigns are performing on different channels like Search, Shopping, YouTube, and Display. For a while, this was a top request from the marketing community, and having this data is a game-changer.

FAQs About Google Ads Performance Max

Why doesn’t Google Ads Performance Max offer channel-level reporting?

Google has recently rolled out channel-level reporting for Performance Max campaigns, which can be found on the “Channel performance” page in your Google Ads dashboard. While this was a common frustration in the past, it’s no longer the case. The report provides a breakdown of performance by individual channels like Search, Display, YouTube, and more.

How can I get high-quality leads from Performance Max?

To get higher-quality leads, focus on providing better signals to Google’s AI. This includes using a full-funnel approach with your conversion tracking, importing offline conversions from your CRM, and utilizing negative keywords to exclude low-quality search terms. You can also structure your asset groups around specific customer personas and provide rich first-party data (like customer lists) to help the algorithm find the most valuable users.

Can I stop Performance Max from serving on my branded queries?

Yes, you can. Google now offers brand exclusions at the campaign level. You can create a brand list in the Shared Library and apply it to your Performance Max campaigns to prevent them from showing for your branded search terms.

Is Performance Max only for remarketing or can it help me find new customers?

Performance Max is designed to help you find new customers. While it can also use your remarketing lists to re-engage existing customers, its core function is to drive growth and find new, high-value customers.

Is Performance Max brand-safe for my business?

Yes, Performance Max has several features to ensure brand suitability. You can use brand exclusions, negative keywords at the account level, and exclude sensitive content categories in your account’s content suitability center.

What’s the ideal campaign structure for Performance Max campaigns?

The ideal structure depends on your business goals, but a common strategy for e-commerce is to segment campaigns based on profit margin or product performance (e.g., “high ROAS,” “medium ROAS,” “low ROAS” campaigns). For lead generation, you might create campaigns for different business objectives or customer personas.

How do I scale results once Performance Max reaches a plateau?

When Performance Max plateaus, it’s often a signal that the campaign has saturated its initial audience. To scale, you should look beyond the campaign itself. Provide new and more relevant creative assets, test new audience signals, and ensure your conversion tracking is as robust as possible. It’s also a good time to consider a full-funnel marketing approach, using Performance Max for the lower-funnel conversions and other channels to build awareness at the top of the funnel.

How can I measure whether my Search Themes are delivering incremental traffic?

Google has introduced a new “Performance Max Usefulness Indicator” tool to help advertisers measure the impact of Search Themes. This indicator appears next to your themes and shows whether they are generating new traffic or if they overlap with your existing signals. You can also analyze your search term insights reports to see how your ads are performing for the new search categories you have provided.

Include Google Ads Performance Max in Your Strategies

Google Ads Performance Max has evolved to give advertisers more control and transparency than ever before. From new reporting features to brand safety tools and lead-quality enhancements, the platform empowers you to align your campaigns more closely with your core business goals. Taking full advantage of this side of Google Ads allows you to approach your potential customers in more ways than one, making your exposure even more profound.

If you’re looking to maximize your business’s impact on Google Ads, an experienced partner can make all the difference. On Digitals provides a comprehensive suite of Google Ads services, including strategic planning, creative production, and daily campaign monitoring. Their team ensures your campaigns are fully optimized to generate high-quality leads and drive brand awareness. Visit our website to learn how they can help you achieve your advertising objectives.