Upon its initial introduction, Performance Max was characterised by a testing and sentiment environment reminiscent of the “Wild West.” Certain individuals expressed enthusiasm at the prospect of obtaining a more extensive visual inventory without allocating a distinct financial allocation, but others expressed dissatisfaction with the relinquishment of control and reporting.
With the advent of Performance Max, advertisers have started to establish established workflow and campaign structure rules. However, there is still uncertainty on which norms of engagement are universally applicable, while others may be exclusive to a certain vertical or budget.
We will thoroughly examine every facet of Performance Max campaigns and analyse established optimal methods and cutting-edge trends to investigate (as well as determine the appropriate timing for their evaluation).
Performance Max’s job: Data, sales and beyond
Prior to delving into the mechanics of Performance Max, it is imperative to understand the ongoing discussion about its fundamental strategic significance. Performance Max is considered a top-of-funnel campaign type due to its extensive promotion of visual content, such as YouTube and display advertisements. On the other hand, others perceive it as a lower stage of the sales process (possibly even appropriating branded enquiries).
The veracity lies within the intermediate and is contingent upon the manner in which one establishes their campaigns. Opting for minimal effort, which involves using default settings and limited creative tailored for Performance Max, is likely to yield mediocre outcomes across all stages of the funnel. This is due to the fact that all channels possess the capacity for implementing reduced funnel techniques, and ad networks such as Google and Microsoft possess a substantial volume of data that enables them to generate typical outcomes with minimal user interaction.
Although Performance Max’s URL expansion function can serve as a replacement for Dynamic Search Ads (DSA), it is crucial to recognise that it may not provide as precise search phrase data. Furthermore, as Performance Max extends beyond search, there is a possibility of encountering false positives or false negatives as a result of the placement type.
Performance Max is designed to complement conventional advertising and signifies the intention to make a transaction. To exclude branded traffic or existing users from the spend, you can do so by adjusting the campaign parameters in the form or user interface.
Structure: One campaign or many
To add Performance Max to your account, you need to select one or many campaigns for the structure. One aspect to be taken into account is the optimal use of a maximum of 100 asset groupings per campaign. Each option has advantages and disadvantages, and the data indicates which path yields the most favourable outcomes.
The sole definitive assertion is that implementing a single campaign with a single asset group is the prevailing and least advantageous approach to executing Performance Max, irrespective of whether you are using Google or Microsoft.
Although it is feasible to achieve success in this manner, it typically indicates the validation of the ad type versus the approach. Unless you operate in a highly specialised industry with a single product or service in a specific market, it is likely that you will have to choose one of the other three structures.
Multiple asset groups inside a single campaign.
Opting for a singular campaign entails the allocation of resources to a singular budgetary concern. This is particularly beneficial for brands who have limited financial resources and require their campaigns to be highly data-driven in order to overcome periods of learning.
It is crucial to bear in mind that asset groups that distribute a budget may not receive the same level of expenditure allocation as the multi-campaign/single asset group method. This implies that it is advisable to restrict asset classes to those that satisfy the subsequent criteria:
The auction prices exhibit a notable degree of similarity. Although slight deviations are acceptable, the presence of one asset group with an average cost per capital (CPC) of $20 and another with an average CPC of $2 can lead to an imbalance.
The location and ad schedules are synchronized. Although a campaign may encompass many time zones, it is crucial to avoid excessive amalgamation of living expenses and search methods.
The conversion actions exhibit uniformity. Although there may be varying conversion values for ecommerce, the underlying action should remain consistent. If you require certain conversion actions to be included in the calculation for some asset groupings while excluding others, it may be necessary to divide the campaigns.
Brands that have a single dominant market or product are well-suited for this. Asset groupings enable them to address the various methods via which prospects/customers will interact with them, and they can rapidly expand their operations.
Brands with several locations and/or many product/service categories are not well-suited for this structure.
Multiple campaigns/one asset group
The primary advantage lies in the ability to allocate a budget to the product/service/persona according to its prospective return on investment (ROI). Nevertheless, given the creation of several budgets, it is imperative to allocate a separate budget for each.
The cost of this can escalate rapidly depending on the specific characteristics of your organisation. Moreover, if you are geographically dispersed, you may encounter difficulties in obtaining a sufficient number of conversions to enhance the performance of Performance Max.
Research has indicated that Performance Max need approximately 60 conversions per month in order to flourish, and if it fails to achieve a minimum of 30, it will face difficulties.
The main considerations for this path are:
Do the margins exhibit significant disparities? If you generate significantly disparate quantities or assign varying degrees of importance to different aspects of your organization, this approach will enable you to establish a purposeful budget for each component of your business.
Is it possible to achieve conversion thresholds? The figure presented above illustrates that low conversions have a detrimental impact on overall performance, as Performance Max is compelled to utilise either Max Conversions or Max Conversion Value.
Although this structure appears to be the most suitable option for most brands, its effectiveness ultimately depends on the budget. Without a minimum monthly budget of $1,500-$2,000, it is unlikely that the campaign would gain sufficient momentum to be significant.
Multiple campaigns/Multiple asset groups
This should be the optimal condition, but it should only be employed in specific situations. This is due to the fact that the presence of several campaigns involving various asset groups raises concerns regarding budget allocation and the need for alignment among multiple asset groupings.
However, there exist instances in which this approach proves advantageous and represents the sole viable method for a business to comprehensively address all the facets of its brand that necessitate marketing.
These are the fundamental factors to consider:
Is there sufficient volume to warrant this structure? It may be inferred that the requirement for numerous rounds of campaign-level parameters, such as location, timetable, budget, etc., necessitates the grouping of various components within your firm into distinct asset groups.
Learn the rationale of having each asset group. Asset categories should encompass diverse creative expressions originating from distinct products, services, or personas. If you are unable to adequately express the rationale for requiring the asset group, it may be most advantageous to combine it with an already existing one.
This structure is well-suited for brands with limited financial resources and a substantial product or service portfolio. If the monthly expenditure is present, auto, travel, and ecommerce are all suitable options. Alternatively, it is advisable to go for a singular campaign that encompasses many asset groups.
Takeaways
Performance Max does not have definitive solutions due to the varying requirements of each brand. However, the below instructions should prove beneficial in determining the correct solution for you:
It is advisable for large-scale businesses to use a multi-campaign strategy in order to effectively allocate expenditures.
One effective method to outperform competitors is by utilising visual creativity, as many firms tend to choose simpler textual content.
In the event that insufficient data is obtained, such as conversions and audience lists, it may be advisable to consider consolidating the existing structure.
The performance of Max has been enhanced, and the outcomes you achieve are closely correlated with the level of exertion you exert.