Performance Max has long promised greater ROAS with minimal effort. Now, over 3 years after the campaign type first launched, marketers are learning that this often isn’t the case. 

On the one hand, PMax can be an incredible tool with the potential to further your marketing goals. 

On the other hand, it’s a total black hole that can eat away at your ad dollars, with very little reasoning or visibility into why. 

In order to shed some light on the PMax black hole, we hosted a sit-down chat with a panel of experts to gain actionable insights on how to tame the PMax beast. Our very own Dani Mansfield and Chester Scott were joined by: 

Thomas Eccel: Performance Marketing Specialist and top 50 PPC expert worldwide

Lucy Smith: Head of Search at Incubeta

Guillaume Devinat: Co-Founder / CEO of Opteo

In just under an hour, we covered everything marketers need to know about avoiding PMax waste and optimizing their campaigns, including: 

• The common PMax pitfalls that lead to wasted ad spend
• The read-world costs of inefficient campaigns
• Expert strategies for optimizing PMax campaigns
• The tools required to help you regain control over PMax spend and maximize campaign impact

Watch the full webinar here - or get the key takeaways from the session below. 

PMax success: It's not just about automation

Lucy Smith kicked things off by sharing a success story where PMax generated a 40% revenue increase with just a 16% increase in ad spend for a client with a large product catalog and extensive data. 

This example demonstrates PMax’s potential, especially for businesses with structured data and resources for experimentation. However, Lucy cautioned that even with positive results, addressing potential issues like cannibalization and brand safety remains critical for PMax success. 

Thomas Eccel then emphasized that simply launching a PMax campaign and “letting the AI do its thing" is a recipe for disaster. 

He stressed that achieving positive results requires active management and optimization, likening PMax to "a small animal that you really have to domesticate". 

He then highlighted the need to continuously analyze placements, search terms, and competitor data to refine campaigns and prevent wasted ad spend.

Constraints: The key to controlling PMax spend

All our panelists agreed that setting appropriate constraints is essential for successful PMax campaigns. 

Guillaume suggested that PMax tends to be more effective for businesses with structured data, such as large e-commerce stores with well-defined product feeds and categories. 

He argued that unstructured data can lead to unpredictable results, making it crucial for advertisers to carefully curate the information they feed into the PMax algorithm.

Chester then pointed out that PMax inherently involves a loss of control and visibility compared to traditional Google Ads campaigns. He warned about the risks related to brand safety, as PMax automatically places ads across various platforms, including potentially undesirable websites. 

Chester also cautioned against the "one size fits all" mentality, emphasizing the need for continuous iteration and experimentation to tailor PMax campaigns to specific business needs.

Navigating hidden features and potential pitfalls

The discussion also highlighted several hidden features and default settings within PMax that can significantly impact campaign performance, and lead to wasted ad spend.

Thomas pointed out a particularly tricky default setting related to location options. While advertisers can select their target location, there is no option to choose between targeting users in that location versus those with an interest in that location. 

This seemingly minor detail can lead to ads being shown outside the intended geographical area, resulting in wasted budget and irrelevant traffic. He then warned about final URL expansion and the potential for PMax to spend on search ads, even when configured as a feed-only campaign.

Guilleaume echoed these concerns, suggesting that advertisers approach settings labeled "smart," "enhanced," "recommended," or "expanded" with caution, as they are often enabled by default and may not be beneficial. 

He then highlighted the challenge of analyzing PMax search terms due to the lack of cost data, recommending alternative analysis methods using impressions and conversions.

Optimization Strategies: Taming the PMax Beast

In order to help marketers optimize PMax campaigns and avoid common pitfalls, we’ve collated a list of expert recommendations from the session:

• Set a slightly higher target ROAS to filter out low-quality traffic and potentially fraudulent conversions.
• Prioritize high-value conversions when setting up conversion actions to help the algorithm focus on desired outcomes.
• Use offline conversions to provide the algorithm with additional data points (especially valuable in lead generation campaigns).
• Actively manage negative keywords and placement exclusions to prevent wasted ad spend and maintain brand safety.
• Providing PMax with quality first party data is absolutely essential 
• Prioritize products based on factors like seasonality, product page quality, and profit margin to guide PMax towards achieving specific business objectives.
• Develop strategies to minimize cannibalization, such as excluding brand terms from PMax campaigns or creating a separate brand-focused campaign.
• Continuously seek insights using tools like scripts, Google's PMax maximizer, and independent testing methodologies to gain a deeper understanding of campaign performance and refine strategies.

Use PMax as a tool, not a magic solution

One of the key takeaways from the discussion is that Performance Max, while powerful, is definitely not a set-it-and-forget-it solution. 

Successfully leveraging PMax requires a proactive approach, a deep understanding of its inner workings, and a willingness to continuously optimize and adapt campaigns. 

By carefully managing constraints, feeding the algorithm with high-quality data, and diligently monitoring performance, advertisers can harness the power of PMax and drive meaningful results for their businesses.

For more detailed tips and information (plus a Q&A with the audience), and for the full context on everything mentioned above, make sure to watch the full webinar on-demand here.