Performance Max is Google's most powerful — and most complex — campaign type. It uses Google's AI to distribute ads across all available surfaces: Search, Shopping, Display, YouTube, Gmail, Maps, and Discover.
For online stores, Performance Max has become essential. It combines the power of Google Shopping with the reach of YouTube and Display, all within a single automated campaign. But “automated” does not mean “simple” — it requires strategic configuration to generate a positive ROAS.
In this guide, we explain everything you need to know: how it works, how to set it up correctly, what mistakes to avoid, and when it makes sense to use it instead of standard campaigns.
What is Performance Max?
Performance Max (PMax) is a Google Ads campaign type that runs across all Google channels from a single campaign. Instead of creating separate Search, Shopping, Display, and YouTube campaigns, PMax unifies them all under one AI-controlled umbrella.
Google's algorithm automatically manages bidding, targeting, and placements. You provide: creative assets (text, images, video), the product feed from Merchant Center, a budget, and your conversion objective. Google decides where, when, and to whom your ads appear.
PMax requires asset groups — collections of creative elements including headlines, descriptions, images, logos, and videos. Each asset group can be targeted toward a specific product category with its own audience signals.
How PMax works for e-commerce
For online stores, the product feed from Google Merchant Center is the centerpiece. Google's algorithm analyzes every product in your feed — title, description, price, images, availability — and automatically matches it with relevant searches and audiences.
You provide four essential elements: products (through the feed), creative assets (text, images, video), budget, and goals (for example, purchases with a target ROAS of 400%).
Google takes control of: targeting (who sees your ad), bidding (how much you pay per click/conversion), and placements (which channels your ads appear on). The algorithm dynamically allocates budget toward the combinations that generate the best ROAS.
Correct setup step by step
A poorly configured Performance Max campaign can burn budget without results. Follow these 8 steps for optimal setup:
Optimize your Google Merchant Center feed
Titles should contain the primary keyword + brand + key attribute. Detailed descriptions, high-quality images, and complete GTIN codes are essential for the algorithm to match products correctly.
Set up conversion tracking
Track all valuable actions: purchase (primary), add to cart and begin checkout (secondary). Without accurate conversion data, the algorithm cannot optimize.
Create campaign with "Sales" objective
Select "Sales" as the primary objective and connect your Merchant Center feed. Choose "Performance Max" as the campaign type.
Set target ROAS (start with 300%)
A target ROAS of 300% means for every €1 invested, you expect €3 in revenue. Start conservatively and adjust after 2–4 weeks of real data.
Create asset groups by product category
Don’t put all products in one asset group. Segment by categories (e.g., men’s shoes, women’s shoes, accessories) with creative assets and audience signals specific to each category.
Add audience signals
Upload existing customer lists, add website visitors (remarketing), and select relevant in-market segments. Signals help the algorithm learn faster who to show your ads to.
Budget: minimum €50/day
The algorithm needs enough data to optimize. With a budget below €50/day, the learning phase extends and performance remains sub-optimal. Ideal: €80–150/day.
Wait 2–4 weeks (learning phase)
Do not change settings during the first 2–4 weeks. The algorithm tests combinations of creatives, audiences, and placements. Premature changes reset the learning process.
5 common Performance Max mistakes
Most underperforming PMax campaigns have one of these fundamental issues:
1. Poor product feed
Generic titles, missing GTINs, low-quality images, or incomplete descriptions. The feed is the engine of every e-commerce PMax campaign — if it’s weak, the entire campaign suffers. Invest time in optimizing titles with relevant keywords and professional images.
2. One asset group for everything
If you put 500 products in a single asset group, the algorithm cannot personalize the message. Segment by category — each category deserves its own creative assets and audience signals.
3. Budget too low
With €10/day, the algorithm doesn’t have enough data to learn. The learning phase stretches indefinitely and performance stays poor. Minimum €50/day, ideally €80+/day.
4. No audience signals
Audience signals are not optional — they are essential hints that help the algorithm understand faster who to show your ads to. Without them, the learning phase takes much longer and costs more.
5. Changing settings during learning phase
Changing the budget, target ROAS, or assets during the first 2–4 weeks resets the learning process. Be patient and let the algorithm gather data before making adjustments.
PMax vs. Standard Shopping vs. Search
Each campaign type has different strengths. Here is a direct comparison:
| Feature | Performance Max | Standard Shopping | Search |
|---|---|---|---|
| Channels | All Google surfaces | Shopping only | Search only |
| Control | Low (AI-driven) | Medium | High |
| Setup | Medium | Medium | Simple |
| Best for | Scaling | Product-specific | High intent |
| ROAS potential | High | Medium-High | High |
| Transparency | Low | Medium | High |
Our recommendation: use PMax as your primary campaign for scaling, complemented by Search campaigns on keywords with the highest purchase intent. Standard Shopping remains useful for products where you need granular control over bids.
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