Google recently announced that Smart Campaigns will be discontinued. Instead, the search engine giant plans to integrate the ad management tool into Performance Max. This news clearly indicates Google’s increasing focus on AI and ML-optimized ads.
But what do these changes mean for small businesses who once relied on Smart Campaigns? And how can they adjust their strategy to get the most from Performance Max?
Smart Campaigns vs. Performance Max
Google offers its users different options for online advertising. Smart Campaigns and Performance Max are two of the more popular ways businesses connect with their target audience.
Smart Campaigns and Performance Max are both built to make ad creation and management straightforward. However, they cater to different businesses, audiences, and campaign objectives.
Let’s briefly break each one down.
Smart Campaigns
- Streamlined, beginner-friendly ad management.
- Perfect for small businesses or those with limited ad experience.
- Primarily focused on Google Search, Maps, and the Display Network.
- Great for local advertising for calls, website visits, or in-store traffic.
- Limited customization options.
Performance Max
- Sophisticated ML that optimizes ad placements.
- Great option for online sales, lead generation, and app actions.
- Huge reach across all Google properties.
- Perfect for business with some ad experience and clear objectives.
- More control over bidding, targeting, and creatives.
In short, Performance Max campaigns allow for more granularity, while Smart Campaigns are ideal for users without significant advertising experience.
As you can see, while both campaign types have a lot of crossover, the discontinuation of Smart Campaigns means their typical user will face a period of adjustment.
So, the big question that many people in that position will ask is how I can get the most from my Performance Max campaigns.
Let’s share how you can do it.
Getting the max from Performance Max
When it was released, Performance Max generated a lot of hype. These all-in-one campaigns promised all the user-friendliness of traditional campaign types but with greater reliance on AI and ML to allocate ad spend and target users.
However, for some, that immense promise has not quite been realized, with many suggesting that Google has a long way to go before outworking Meta Ads.
Of course, a big part of generating success (and sales) from Performance Max is knowing how to set it up properly. Here’s how.
Seven steps for winning with Performance Max
You first need to consider that Performance Max is an explicitly goal-based ad type. In other words, you must specify your objectives, such as sales, leads, or website traffic. From there, Performance Max optimizes your ads to achieve the goal that you set.
However, to get the most out of Performance Max, you need a strategic approach and data-driven insights.
#1. Set your objectives
Before starting your campaign, you need to determine your business needs. Some of the goals here include:
- Sales
- Leads
- Web traffic
- Store visits
In essence, if you want the AI to optimize your ads, you need to give it some direction.
Pro tip: Google recommends that you have at least 50 conversions per month for Performance Max to work optimally. So, if you don’t have lots of conversions, keep your campaigns to a minimum.
#2. Get your assets in order
The success of your Performance Max campaign depends on your assets. Ensure you give it the best raw materials to work with, be they images, videos, descriptions, headlines, and so on.
Pro tip: Andrew Lolk’s recent presentation at SMX Advanced 2024 showed that 85% of PMax ad spend goes on Shopping Ads, with a further 10% on Search Ads. These ad formats and their relevant assets should be your priority.
#3. Use audience signals
If you want Performance Max to deliver the goods, you need to use audience signals. There are two ways to go here.
Your own data:
- Past purchases
- Website Visitors
- App Users
- Video Viewers
Additionally, you can create custom segments based on keywords, URLs, or apps that are relevant to your ideal customer.
Google audience data:
- Demographics (age, gender, household income, etc)
- Interests (sports, tech, music, etc.)
- Big life events (graduating, marriage, moving, etc.)
Pro tip: The Performance Max algorithm uses audience signals to teach the machine. Ensure you feed the algorithm high-converting audiences so it can drive ROAS.
#4. Smart bidding
Performance Max uses your objectives to optimize bids in real time. Choose the option that aligns with your goals.
Pro tip: Always set a minimum and maximum bid. Some experts suggest that the max bid should be 2 or 3 times your average CPC, especially if you operate in a dynamic market.
#5. Monitor performance
A good Performance Max campaign is the product of careful analysis. Track the metrics that are relevant to you.
Pro tip: Exclude brand terms as negative keywords. These brand name searches are people who most likely would have converted anyway. So, don’t let Performance Max take the credit for those conversions if you want an accurate assessment of how it’s executing your campaigns.
#6. Test and iterate
Use the results of your monitoring to constantly improve your campaigns. Remember, no campaign is perfect; it is always a work in progress.
Pro tip: Google recommends that you run campaigns for six weeks to allow their algorithms to adjust. Experts suggest a daily budget of $50 to $100 is good within that time period.
#7. Stay up to date
Keep an eye on updates and best practices. Performance Max is forever growing and evolving. Ensure your business grows with it.
Pro tip: Don’t make too many adjustments at once. If you change a lot of different settings, you won’t be able to know what has had an effect.
Final thoughts
Performance Max is capturing a significant portion of ad spending for many e-commerce advertisers. However, while it gets good results, many advertisers suggest its algorithms and targeting are less effective than Meta Ads.
If you want to take full advantage of Performance Max’s reach but want to unlock Meta Ads-type optimization, Amanda AI is here to help. Our robot can augment the ML-driven automation of Google, Meta, and Bing Ads, allowing you to outperform your rivals.
