Performance Max: Inventory Access Expanded
Performance Max is a new campaign type from Google Ads that became available late last year and simplifies advertising by allowing advertisers to access all of their Google Ads inventory from a single campaign. It’s designed to complement keyword-based Search campaigns to help find more converting customers across all of Google’s channels like YouTube, Display, Search, Discover, Gmail, and Maps. With this new update, Google’s Smart Shopping and Local campaigns have been upgraded into Performance Max to supplement the same foundational features along with accessing additional inventory and formats across YouTube, Search text ads, and Discover.
The updated campaign automation uses five different campaign types and builds an omnichannel strategy within the Google Ads universe, driving users down the conversion funnel by utilizing different awareness and conversion ad formats available along with various user signals. This powerful campaign self-optimizes based on attribution and user behaviors, and works towards driving maximum conversions within the allocated budget.
Smart Shopping and Local Campaigns
Based on early testing done by Google, advertisers who upgraded Smart Shopping and Local campaigns to Performance Max saw an average increase of 12% in conversion value at the same or better Return On Ad Spend (ROAS). Advertisers can continue using existing Smart Shopping and Local campaigns until it gets upgraded to Performance Max later this year.
Advertisers can also start using Performance Max for any new campaigns created in Google Ads. They can access ad inventory that’s already available in Smart Shopping and Local campaigns plus new inventory and formats — including across YouTube, Search text ads and Discover. The tool gives flexibility to upgrade specific campaigns or all of the campaigns at once. Learnings from the existing campaigns will be used in new campaigns to maintain consistent performance going forward.
Through the rest of September 2022, local campaigns will be automatically upgraded to Performance Max campaigns. Advertisers will no longer be able to create new Smart Shopping and Local campaigns once the existing campaigns are automatically upgraded. It is also important to note that the automatic upgrade process will conclude by the end of September to ensure advertisers are well prepared to use the new feature for the 2022 holiday season.
Key Benefits to Performance Max Include:
- Creative Automation: Tests different combinations of assets (headlines, images, etc.) and learns which combinations perform best
- Delivery Automation: Create just one campaign and get the ads wherever users are interacting with Google, whether that’s on Search, Display, YouTube, Maps, Discover, or Gmail
- Increase in Conversion Value: Performance Max campaigns drive incremental conversions at the same or lower cost per conversion
- Find More Converting Customers: Increases Conversions as it allows to engage customers across Google’s channels
- Holistic Approach and Full Channel Coverage: Users take advantage of all of Google’s offered channels
- Ease of Setting Up: Rather than creating separate campaigns for separate channels, Performance Max campaigns are relatively seamless to set up
For now, Google Local campaigns make it easy for advertisers to promote stores locally, ensuring that potential customers have the information that they need to decide when and how to visit their stores. Performance Max provides the same foundational features of Smart Shopping and Local campaigns while accessing brand new inventory and formats across YouTube, Search text ads and Discover. There is no way to opt-out or to control the serving on any of the specific networks. Performance Max campaigns have an initial learning period of 10 days before advertisers see performance and results.
Reach out to the True Media Performance team today to switch your Google Local and Smart Shopping campaigns to Performance Max Campaign or to get started with a new Performance Max campaign!
About the Author
Nisha Chandrashekar, Activation Strategy Director, Performance Media
Nisha is a vital part of our True Media Canada team and helps monitor media performance within our Activation department.