It seems like everything these days is either labeled as “smart” or incorporates some element of “machine learning.” From our phones and TVs to even our refrigerators, the transfer of control to machines might be well underway. This technology-driven trend has significantly impacted everything in the digital realm, and the marketing industry is no exception. Tech giants like Google and Meta (formerly Facebook) have been relentless in their pursuit of making their ad platforms as automated and hands-off as possible.

Previously, I’ve discussed the potential downsides of allowing companies, to whom we give our money, to dictate how we give them money. However, does this automation trend necessarily have to lead to a dystopian marketing scenario straight out of Black Mirror? Or is it truly a game-changer for businesses operating online? The answer likely lies somewhere in between. Google’s latest foray into this realm of automation, Performance Max Campaigns, was launched in November of the previous year. Marketed as the next big thing in digital advertising on the platform, the question remains: does it live up to the hype? Is increased automation the right move for you and your business? This article aims to unpack:

• The fundamentals of Google Ads Performance Max and its mechanics.
• The advantages and disadvantages of Performance Max campaigns.
• Perspectives on this campaign type within the broader context of automation.

Demystifying Google Ads Performance Max campaigns

Performance Max is a campaign type within Google Ads where you, the advertiser, establish a goal and furnish all the relevant assets and details about your advertised product or service. Google then takes over, automatically generating ads that can be displayed across its entire network of available placements. This means your ads can appear on Search, Maps, Display, YouTube, Gmail, and Discovery networks, all managed from a single campaign.

How Performance Max Campaigns Function

Performance Max essentially elevates responsive ads and smart campaigns, integrating these features into a unified platform. To run Performance Max campaigns effectively, you need to provide Google with the following:

• Your marketing aims and objectives
• Your budget allocation
• Your creative elements, including text, images, and video content
• Your geographical targeting parameters
• Your data feeds (optional), including:
  • Google My Business information
  • Google Merchant Center data
  • Dynamic Ads feed
  • Business data feeds
• Your audience signals (optional), such as:
  • First-party Audiences (custom lists)
  • Google Audiences (manually targeted segments)

Image source

When to Utilize Google Ads Performance Max

The most common question surrounding Performance Max is whether it should entirely replace existing campaigns, becoming the sole driver of performance within an account. The short answer is no. Performance Max is best employed as a complementary strategy alongside your existing efforts. As it operates based on predetermined goals, it’s most effective when you have specific conversion objectives (a relatively new feature introduced in November 2021), such as boosting online sales or lead generation. It’s also advantageous when you aren’t restricted by specific channels for ad display. In his analysis of Performance Max, Dean Long suggests that this campaign type is particularly well-suited for advertisers who:

• Lack the time or personnel to optimize each channel individually.
• Find it challenging to manage multiple campaign types for a single location.
• Have a limited budget but desire exposure across all of Google Ads’ inventory.
• Possess an ample budget and want to tap into new and unexpected customer segments.
• Aim to explore and expand into new geographical markets.

Weighing the Pros and Cons of Performance Max

The overarching goal—simplifying and enhancing the accessibility of advertising on Google’s networks—is undoubtedly appealing, especially for newcomers who might feel overwhelmed by the multitude of options within Google Ads. But does it deliver on its promise? And if so, does it outperform alternative approaches? Let’s delve into the pros and cons of Performance Max campaigns.

Advantages of Performance Max

The feedback I’ve gathered on Performance Max has been largely favorable, with many of the downsides being those I’ll outline shortly.

• Simplified Google Advertising for Newbies: The allure of managing all your marketing objectives through a single campaign, without the need to navigate a complex web of multiple campaigns, is a major draw for those seeking a less steep learning curve.
• Enhanced Focus on Strategic Performance Drivers: Creative optimization, campaign planning, and PPC reporting are streamlined with Performance Max. A multi-campaign approach might involve managing responsive search ads, responsive display ads, and more, each with varied creatives and messaging scattered across different interfaces. Performance Max consolidates all these elements, enabling faster strategic marketing decisions.
• Impressive Results When Utilized Effectively: The caveat here is “when used correctly” because having well-defined goals and providing the right inputs are crucial for Performance Max to deliver. By “correct inputs,” I’m primarily referring to guiding Google’s targeting efforts. Leveraging first-party data, such as a list of existing customers, is more effective than relying solely on AI to identify your target audience, potentially saving you significant costs.

Results from Google’s Performance Max case study—interpret with caution, though I don’t dispute the validity of their findings.

Drawbacks of Performance Max

Ironically, while Performance Max is designed to appeal to less experienced users, many of its drawbacks stem from “rookie” mistakes.

• Clarity of Goals is Paramount: This aligns with the previous point that unclear marketing objectives or conversion goals will hinder your Performance Max campaigns. The same applies to the quality of ads and feeds. The AI won’t magically transform your ads; you need to ensure the best possible creative inputs.
• Reduced Control: A common criticism of smart campaigns, automated bidding, and automation in general is the perceived loss of control for advertisers. Those accustomed to fine-tuning every aspect of their campaigns might resist this shift.
• Limited Transparency: While Google is gradually introducing more reporting features, obtaining granular insights into individual campaigns or asset combinations remains a challenge.
• Machine Learning Isn’t Full Automation: Over-reliance on machine learning or assuming it requires minimal effort on your part is a recipe for disappointment in Google Ads. Neglecting proper Performance Max setup can lead to wasted resources. I’ve highlighted this as a “con” due to the potential disconnect between Google’s marketing of these products and the expectations of novice users. Are you overspending on Google Ads? Get a quick assessment with the free Google Ads Performance Grader.

Divergent Perspectives on Performance Max

The introduction of increased automation in digital marketing platforms often elicits three primary reactions from industry professionals:

• Enthusiastic adoption by those eager to simplify management for themselves or their clients.
• Resistance from those averse to change or fearful of becoming obsolete.
• Skepticism from those who question the true motives of these tech giants. Let’s examine the two extremes of this spectrum.

Perspective #1: Give It Time

Long-time practitioners like myself, deeply entrenched in these digital platforms, might lean towards cynicism. But are we justified, or simply stuck in our ways? I recall Facebook’s retirement of its Power Editor, merging it into the main Ads Manager. Initially, I was outraged. Yet, with time, the memory of Power Editor faded. Were I to revert back, I’d likely find reasons to complain. Power users, comfortable with the existing functionalities, aren’t always welcoming of drastic changes. However, Performance Max might prove beneficial in the long run. If its effectiveness for clients and marketers becomes evident, the criticisms might subside, replaced by an acceptance of these tools’ superiority over manual control. PPC expert Jyll Saskin Gales embodies this perspective. In a recent tweet, she shared that after an initial two months, her Performance Max campaign hit its stride, leading to a surge in conversions and her lowest cost-per-acquisition yet.

View the Tweet here.

Perspective #2: Follow the Money

On the other side, skepticism towards automation prevails. Some perceive it as a tactic employed by Google, masked by an altruistic “helping you succeed” facade, while the underlying motive is often profit maximization.

View the Tweet here. (In my view), Google strategically reduces transparency (consider the search terms report), then positions itself as the savior, suggesting that marketing on their platform is overly complex and offering to take the reins for better results. Industry veterans understand that revenue generation remains the top priority for Google and Meta. Lack of clarity and control over ad spend inevitably leads to higher expenditures.

The counterargument posits that novice advertisers likely overspent in the past when platforms were less automated and more intricate. The answer is nuanced. Yes, novice advertisers often made costly mistakes. However, automation has made it easier than ever to spend more, observe some return, and continue platform usage. The point isn’t that users are recklessly spending; it’s that they have less control over precisely how their budget is allocated. Platforms remain effective, but the efficiency and specifics of ad spend are becoming increasingly opaque.

View the Tweet here.

The Final Verdict?

I don’t believe AI in marketing or platform automation is inherently good or bad. We’re at a stage where significant human intervention and guidance are still necessary for artificial intelligence and “machine learning.” Could digital marketing become fully automated someday? Possibly. But currently, a successful paid media strategy relies on individuals leveraging automation to maximize its potential. As with everything in digital marketing, each business is unique. The key is to select tools that best serve your needs. If you’re interested in exploring Performance Max, our compilation of free Google Ads training courses includes a helpful tutorial and other valuable resources. For those already using Performance Max, we’d love to hear your thoughts in the comments below!