Performance Max is a Google Ads campaign type that shows ads in Google Search, on YouTube, in the Display Network, in Discover, Gmail and Google Maps from a single campaign. Google automatically combines your texts, images and videos and bids towards your conversion goals. For this to work, you need clean tracking, good assets and clear limits for the automation.
Key takeaways
- Performance Max uses the entire Google Ads inventory in one campaign and optimises for conversions or conversion value.
- You provide goals, assets, audience signals and up to 50 search themes per asset group – Google’s AI handles delivery.
- Without reliable, consent-based conversion tracking, the campaign optimises for the wrong signals.
- Negative keywords, brand exclusions and URL exclusions give you back control.
- Channel and search term reports now show where your budget is actually spent.
What is Performance Max?
Performance Max is a goal-based campaign type in Google Ads that serves all Google advertising channels from one campaign and controls delivery with AI. This is how Google itself describes it in its official help page on Performance Max campaigns. Instead of maintaining a separate campaign with its own keywords, audiences and budgets for each channel, you set a goal, such as sales or leads, and provide creative assets. Google takes care of bids, placements and the combination of ads.
Performance Max has replaced older campaign types: according to Google, Smart Shopping and Local campaigns were upgraded to Performance Max by the end of September 2022. For online shops, this campaign type is therefore often the standard today for advertising products from Merchant Center.
How does a Performance Max campaign work?
Your input sets the framework: goals, budget, asset groups, audience signals and search themes. Within this framework, Google’s AI decides on bids, channels and ad combinations. Each campaign consists of one or more asset groups. These are collections of headlines, descriptions, images, logos and videos on one topic, such as a product category or a service.
- Asset groups: Google assembles suitable ads for each channel from your texts, images and videos.
- Audience signals: you show Google who your customers are, for example through your own customer lists or interests. Signals speed up learning but do not limit delivery.
- Search themes: according to Google’s help pages, you can add up to 50 search themes per asset group. They have the same priority as phrase match and broad match keywords.
- Smart Bidding: bids are based on the likelihood of a conversion. Optionally, you set a target ROAS or target CPA.
Important for accounts with classic Search campaigns: if a search query matches an exact match keyword in a Search campaign, the Search campaign takes priority over Performance Max, according to Google. So the two campaign types can be combined sensibly.
On which channels do the ads appear?
Performance Max serves ads in Search, the Display Network, YouTube, Discover, Gmail, Maps and on search partners – controlled through one shared budget. That is 7 channels from one campaign. The AI decides how much budget each channel receives based on expected results. Since Google introduced the channel performance report, you can see this distribution in your account.
| Channel | Typical ad format | What you should provide |
|---|---|---|
| Google Search | Text ads, Shopping ads | Meaningful headlines, product feed |
| Display Network | Image and responsive ads | Landscape and square images, logo |
| YouTube | Video ads | Your own videos, otherwise Google creates videos automatically |
| Discover and Gmail | Image-based ads in the feed | High-quality images with a clear message |
| Google Maps | Local ads | Linked Google Business Profile |
Who is Performance Max suitable for?
Whether Performance Max pays off depends above all on measurable goals: online shops and businesses with clearly defined enquiries benefit most. Google recommends this campaign type if you have specific conversion goals and want reach beyond keyword-based search. It is particularly well suited to shops with a well-maintained product feed, for example from WooCommerce, Shopify or PrestaShop.
Performance Max is less suitable if you hardly measure any conversions, have only a very small budget or need to control every single search query yourself. In these cases, classic Search campaigns with precisely defined keywords are often the better starting point. Our Google Ads guide explains the basics.
Practical example (anonymised, typical pattern): an online shop for garden furniture launches Performance Max with just one asset group for the entire range. The campaign spends most of the budget on a few bestsellers. After splitting it into asset groups per product category, each with its own images and search themes, it becomes easier to control which categories receive how much budget.
What does a successful campaign require?
Correct conversion tracking, meaningful assets and suitable landing pages are crucial – without these basics, the AI optimises for inaccurate or wrong signals. Performance Max learns exclusively from the data you provide. If data is missing or distorted, even the best automation makes poor decisions.
- Conversion tracking: set only real business goals as primary conversions, such as a purchase or a qualified enquiry, not every page view. More on this in our guide to tracking with GA4.
- Consent: in the EU, storing cookies on a user’s device generally requires consent under Article 5(3) of the ePrivacy Directive. Google’s Consent Mode passes this decision on to Google tags.
- Product feed: for shops, a well-maintained feed in Merchant Center with complete titles, images, prices and availability.
- Assets: several headlines and descriptions, images in different formats, a logo and, ideally, your own videos.
- Landing pages: fast, mobile-optimised pages with a clear call to action.
How do you keep control over the automation?
Exclusions and reports let you set clear limits for the AI: negative keywords, brand exclusions, URL exclusions, and channel and search term reports. For a long time, Performance Max was considered a “black box”. Google has since added several control options that you should actively use.
- Negative keywords: they can be added at campaign or account level and, according to Google’s help pages, apply only to Search and Shopping inventory.
- Brand exclusions: prevent Performance Max from showing for searches for your own brand or another brand.
- Final URL expansion: according to Google, this feature is switched on by default and may send visitors to other pages of your domain. Exclude pages such as your legal notice, careers or blog specifically.
- Search terms report: the “Search terms and landing pages from Performance Max” report shows which search queries your ads appeared for. Data is available from March 2023.
Check these reports regularly. Exclude unsuitable search terms, and use well-performing terms as ideas for new headlines, search themes or content when combining SEO and PPC. How to evaluate search terms systematically and assign them to pages is shown in our post Keyword research.
How do you set up Performance Max step by step?
Plan the setup in 6 steps: define the goal, check tracking, build asset groups, add signals, set exclusions and support the learning phase. This prevents the campaign from spending budget on unsuitable placements in the first weeks.
- Choose a goal: Google offers 4 campaign goals: sales, leads, website traffic, or store visits and local promotions.
- Check tracking: review primary conversions, conversion values and Consent Mode.
- Build asset groups: one group per product category or service, with suitable texts, images and videos.
- Add signals and search themes: customer lists, interests and relevant search themes per asset group.
- Set exclusions: set up negative keywords, brand exclusions and URL exclusions before launch.
- Support the learning phase: change budget and goals as little as possible in the first weeks, and analyse the reports instead.
Which mistakes should you avoid?
Common mistakes are wrong conversion goals, too few assets, missing exclusions and making changes too early during the learning phase. If a campaign counts clicks on the phone number and real purchases as equal, for example, it optimises for the easier goal. Just as problematic: brand searches that would have reached you anyway are credited to Performance Max as a success.
Another point is the separation from existing campaigns. If Shopping campaigns or remarketing run in parallel, you should clearly separate responsibilities. Otherwise your campaigns compete for the same users, and the evaluation becomes inaccurate.
Frequently asked questions
Does Performance Max replace classic Search campaigns?
No. Performance Max complements keyword-based Search campaigns but does not replace them. If a search query exactly matches a keyword in a Search campaign, the Search campaign is preferred, according to Google. Many accounts therefore use both: Search campaigns for important terms where you want to control text and bids precisely, and Performance Max for additional reach across all other Google channels.
Can I exclude keywords in Performance Max?
Yes. Negative keywords can be added for individual Performance Max campaigns or for the entire account, including via lists. However, they only work in Search and Shopping inventory. For Display and video ads, use excluded content keywords in the content suitability settings instead. Check your campaign’s search terms report regularly for this purpose.
Do I need my own videos for Performance Max?
Your own videos are not mandatory but are recommended. If you do not upload any videos, Google can automatically create videos for YouTube from your images and texts. These often look generic and do not always suit your brand. Even short, self-produced clips about products or services give you more control over how your business appears on YouTube.
How can I see which channels my budget is spent on?
Google offers a channel performance report for Performance Max. You can find it in the Campaigns area under “Insights and reports”. Among other things, it shows 5 metrics – impressions, clicks, conversions, conversion value and cost – broken down by Search, Display, YouTube, Discover, Maps, Gmail and search partners. This lets you see which channel actually contributes to your goals and where budget is wasted.
Is Performance Max suitable without an online shop?
Yes, Performance Max also works for service providers and local businesses, for example with the goal of leads or store visits. The prerequisite is that you reliably measure qualified enquiries as conversions, such as submitted contact forms. Without a product feed, the quality of the ads depends more heavily on your texts, images and videos. A linked Google Business Profile also helps with local ads.
Setting up Performance Max properly
We check your tracking, structure asset groups and set up exclusions so that Google’s AI works towards your real business goals. Get in touch with us.
