PPC campaign management

Performance Max campaigns: when do they work well, and when should you use something else?

Written by:
Heni
Reading time:
8
minutes

In recent years, the world of Google Ads has undergone significant changes. Automation and artificial intelligence are playing an increasingly important role in campaign management, and the Performance Max campaign type is one of its most crucial elements.

At first glance, this seems like an ideal solution: a campaign that is present everywhere, with the algorithm deciding where and to whom the ad should appear. But does it really work in every case? And when should you choose a different campaign type instead?

Let's take a look!

Performance Max campaigns: when do they work well, and when should you use something else?

What is a Performance Max campaign?

Performance Max is a Google Ads campaign type that automatically optimizes ad placements across Google's entire advertising ecosystem.

For the campaign to run, the advertiser primarily needs to provide the following elements:

creative elements (text, images, video)
target audience indicators
conversion goals
budget

After this, the algorithm decides:

where the ad should appear

which creative combination works better?

which users should I show this to?

The big advantage of automation is that it requires less manual optimization, but it also means less control over the campaign.

Who is the Performance Max campaign for and what is it good for?

Although many advertisers view them as a universal solution, there are actually situations where they perform particularly well.

1. If you're advertising an online store

As a marketing agency day after day, we see that one of the strongest use cases for Performance Max is the e-commerce.

If a well-structured product feed is available, the algorithm is capable of:

  • display the appropriate products
  • optimize bids
  • identify users who are likely to make a purchase
In such cases, the campaign often performs better than a traditional shopping campaign. It’s not uncommon for it to generate as much as 20–30% more conversions—provided the settings are correct and there’s enough data—while the system automatically optimizes impressions.

2. If there is a lot of conversion data available

The algorithm works really well when it has enough data to learn from.

#m1-y#If there are only a few conversions (such as purchases or leads) each month, the system is essentially operating “blind.”##

In contrast, with 50+ conversions per month, we can already talk about stable optimization, and once the number exceeds 100, the campaign's performance typically improves dramatically.

3. If you want to be active on multiple channels at the same time

A Performance Max campaign can run at one time:

  • among the search results
  • before watching YouTube videos
  • in display ads
  • in Gmail
  • in the Discover feed

This can be particularly useful when brand building and conversion are both goals.

1. If you advertise an online store

As a marketing agency, we experience daily that one of the strongest use cases for Performance Max is e-commerce.

If a well-structured product feed is available, the algorithm is capable of:

  • to display the right products
  • to optimize bids
  • to find users likely to make a purchase
In such cases, the campaign often performs better than a traditional shopping campaign. It's not uncommon that with proper settings and sufficient data, it brings up to 20–30% more conversions, while the system automatically optimizes impressions.

2. If a lot of conversion data is available

The algorithm works truly well when it can learn from sufficient data.

#m1-y#If only a few conversions (e.g., purchases or leads) occur monthly, the system operates practically "blind."##

In contrast, with 50+ conversions/month, we can already talk about stable optimization, and above 100, campaign performance typically improves significantly.

3. If you want to be present on multiple channels simultaneously

A Performance Max campaign can appear simultaneously:

  • in search results
  • before YouTube videos
  • in display ads
  • on the Gmail interface
  • Discover the feed

This can be particularly useful if your goal is both brand building and conversion.

When to be cautious?

Mikor nem jó választás a Performance Max

While Performance Max works well in many cases, it's not always the best choice.

1. If you want full control

One of the campaign's biggest drawbacks is that it offers limited insight into its performance.

For example:

  • you don't always see exactly which searches led to conversions
  • keyword control is limited
  • it's harder to optimize ad appearances

#m1-p#Therefore, if detailed optimization is needed, a classic search campaign is often a better choice.##

2. If you don't have strong creative assets

Performance Max campaigns utilize creative combinations.

#m1-y##However, if only a few images or weak text are available, the algorithm won't have enough material to create good variations.##

It's worth including at least:

  • more images,
  • more headlines,
  • and more descriptions.

3. If you're starting with a new account

With a brand new Google Ads account, it's often better to start with traditional campaigns, because:

  • the operation is more transparent,
  • you can learn faster from campaign data,
  • and it's easier to optimize.

Once you have enough data, it's worth testing Performance Max: 

The general guideline is that a minimum of 30 conversions/month is required, but above 50–100 conversions the campaign really starts to perform well.

What to use instead of Performance Max?

If you feel that a Performance Max campaign isn't the best choice for you, fortunately, there are several other campaign types that offer greater control and transparency.

It's worth choosing from the options below, depending on your business goals.

4 practical tips for Performance Max campaigns

If you're launching a Performance Max campaign, the following tips can be very helpful.

1. Include as many creative elements as possible

The algorithm can only work well if it has enough options to combine. In practice, this means it's a good idea to upload as many variations as possible. Minimum recommendation:

  • 5–10 headline
  • 3–5 long headline
  • 4–6 description
  • 5–10 image
  • at least 1–2 videos (if none are available, the system will generate some, but these are usually of lower quality)

#m1-y#The more creatives you have available, the more combinations the algorithm can test, and the faster it can find high-performing variations.##

2. Use high-quality audience targeting options

For example:

  • remarketing lists (e.g., cart abandoners, product page visitors, returning visitors)
  • customer lists - important: these only work effectively if there is enough data available—Google generally requires at least 1,000 active users, which in practice means a list of several thousand.
  • target groups by interest (e.g., “in-market” or affinity-based audiences)
It is important to understand that these are not strict targeting criteria, but rather cues for the algorithm. The system uses these as a starting point and then independently expands and refines the targeting based on performance.

3. Keep an eye on your conversion data

The campaign's performance is primarily determined by conversion data.

#m1-y#Even if you don't have enough purchases or conversions, you don't have to give up on Performance Max.##

👉 In such cases, it's a good idea to set up micro-conversions as well, such as:

  • add to Cart
  • newsletter subscription
  • in display ads
  • view product page
  • time spent on the site

If enough data is collected from these sources, the algorithm can use it to optimize performance and, over time, increase the number of key conversions (e.g., purchases).

Later, once sufficient purchase data is available, you can gradually shift your focus back to optimizing the main conversion.

4. Give the algorithm some time

Automated campaigns typically require 2–4 weeks of training time.

During this time, the algorithm:

  • tests various creative combinations
  • analyzes user behavior
  • fine-tune bids and targeting

The length of the study period depends on:

  • the number of conversions (more data → faster learning)
  • the budget
  • market competition

#m1-y#If there is little data, the learning phase may take longer, whereas with a stable conversion flow, the campaign can be optimized in as little as 1–2 weeks.##

👉 Important: it is best to avoid making major changes during the training period, as these can slow down the algorithm's learning process.

#promobox-newsletter-en###

​​How to choose?

The question isn't whether Performance Max is a "good or bad" solution. 

The success of campaigns depends much more on how well it fits your specific goals and current account situation.

As a starting point, it's better to think this way:

  • if conversion data is scarce or the account is new → Search campaigns help build a stable foundation
  • if you have a webshop and conversions are already coming in → Performance Max and Shopping campaigns can also be suitable for scaling
  • if you're collecting leads → Search, Performance Max, or even separate lead campaigns can work, depending on targeting and creatives
  • if you have existing traffic → remarketing can appear in multiple campaign types, not just as a separate strategy
  • if brand awareness is the goal → YouTube or Demand Gen campaigns can provide greater reach

Summary

Performance Max campaigns can be an effective tool in the Google Ads system, especially if:

  • you're promoting an e-commerce store
  • ample conversion data is available
  • you want to have a presence across multiple channels simultaneously

However, it's important to understand that this isn't an ideal solution in every situation. 

If precise control, detailed optimization, or testing new campaigns is needed, classic campaign types often remain a better choice.

In many cases, you're better off if:

  • you work with classic search campaigns
  • you handle remarketing separately
  • or use more targeted campaign types

The best strategy is usually to combine different campaign types rather than relying on just one. Test different approaches and use the data to decide which one works best for your specific business goals.

#promobox-en#If you want to get the most out of your Google Ads campaigns, it’s a good idea to seek expert help, as the right campaign strategy can significantly improve your return on ad spend.##

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