Performance Max (PMax) campaigns have quickly become a favorite among digital marketers, and for good reason. According to Google data, PMax campaigns drive an average 13% increase in total incremental conversions at a similar cost per action.
Ever since Google rolled out PMax worldwide in 2021, marketers have been using this AI-powered campaign type to access all of their Google Ads inventory from a single campaign, using automation to deliver results across Search, Display, YouTube, Gmail, Discover, and Maps.
In 2025, with continued improvements to Google’s AI and growing consumer expectations for personalized experiences, Performance Max is no longer just a “nice to test” campaign type—it’s a must-have in any marketing strategy for those who are looking to scale.
Here’s everything you need to know.
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What is Performance Max?
Performance Max is a goal-based campaign type in Google Ads that uses machine learning to automate bidding, audience targeting, creatives, and placements. You provide Google with assets (like images, videos, headlines, and audience signals), and the system tests combinations across all Google channels to drive conversions based on your goals—whether that’s sales, leads, or store visits.
Unlike traditional campaign types, Performance Max doesn’t rely on keywords. Instead, it uses AI to find high-intent customers, wherever they are in the Google Ads ecosystem.
Benefits of using Performance Max
Here are some of the benefits marketers are achieving with PMax campaigns:
- Access to all channels from a single campaign: No need to split budgets or manage separate campaigns for Search, Display, or YouTube. Performance Max covers them all.
- More conversions through automation: Google’s algorithms test thousands of asset combinations and placements to maximize your performance and reach.
- Real-time optimization: PMax continuously learns from user behavior, adapting bids, placements, and creatives in real time for better outcomes.
- Fills in gaps missed by Search campaigns: Performance Max captures long-tail and non-obvious search queries you might not be targeting manually.
- Simplified campaign management: By consolidating campaigns, PMax saves time while still driving scalable results.
How to create a Performance Max campaign in Google Ads
If the benefits we outlined above got you excited about PMax, we get it! Here’s how to set up a PMax campaign in Google Ads.
1. Start a new campaign
Log in to your Google Ads account, click the “+ New Campaign” button, and select a goal (e.g. sales, leads, traffic).
2. Select your conversion goals
Make sure your goals are accurate and relevant. Use enhanced conversions or import offline conversions if needed. Choose Performance Max as your campaign type and name your campaign.
3. Choose a bid strategy and budget
For your bid strategy, you can choose either “Maximize conversions” or “Maximize conversion value.” If you have ROAS targets, set them here.
4. Select campaign settings
Here you’ll choose the locations where your ads should appear geographically, and in what languages. You’ll also select the URLs you want to send traffic to.
5. Upload your assets
This includes headlines, descriptions, logos, images, and videos. The more variety you provide, the better—so the AI can optimize the absolute best combinations in real-time for your campaign. You can preview how your ads look in the setup tool.
6. Add audience signals (aka targeting options)
You can use your customer lists, retarget website visitors, or select from Google’s interests and demographic options. These targeting options don’t restrict who sees your ads; they simply give the algorithm a starting point for optimization.
7. Launch and monitor your campaign
Once it goes live, give your campaign at least a few weeks before making any major changes. Like with most AI-powered campaigns, PMax goes through an initial learning phase.
How to optimize Performance Max campaigns
For even better results, follow these tips for optimizing PMax campaigns in Google Ads.
Use audience signals strategically
To help Google find your best customers faster, include high-value customer lists and top converters.
Upload a full suite of creative assets
Don’t skimp here. More high-quality assets = more testing opportunities = better performance. Include at least one video if possible.
Segment campaigns when needed
Running multiple product categories? Consider creating separate PMax campaigns by product type or margin to control budget allocation.
Monitor asset performance
Google provides rankings like “Best,” “Good,” or “Low.” Swap out underperforming creatives and test new angles frequently.
Exclude brand traffic if needed
If you’re running branded search separately, use account-level negatives to prevent cannibalization. Some analyses suggest that PMax search terms may overlap with those of Search campaigns.
Leverage insights reports
PMax doesn’t show traditional search terms, but the insights tab offers valuable information like your top-performing audience segments, assets, and search themes.
Ready to scale with Performance Max in 2025?
Done right, PMax campaigns can help you unlock the full potential of Google Ads and reach new customers across the entire funnel.
Just remember: while automation handles the heavy lifting, your strategy and inputs still matter. For an expert review of your campaigns, contact Your Marketing People today.
