Performance Max Best Practices for 2025 Success

Performance Max campaigns are more than just automation; they’re about strategically guiding Google’s AI for optimal results. Following google Performance Max best practices can significantly boost your campaign performance and ROI.

From choosing the right bidding strategy to adding as many relevant assets as possible, the success of your campaign requires fine-tuning. To see results, advertisers must optimize their product feed, leverage Final URL Expansion, and utilize ad extensions to their full potential.

Here’s what you’ll learn:

How to provide specific audience signals?
How to fine-tune signals using relevant audience lists?
Why is retargeting and seeding important?
Managing low-performance assets
When should you consider feed-only campaigns?
And why you should run campaigns for at least 6 weeks.

We’ll also cover how to track and optimize results, commit to your campaigns, and even combine PMax with search campaigns for broader reach.

Let’s dive into Google Ads Performance Max best practices!

Understanding Performance Max Campaigns

Performance Max campaigns are fully automated Google Ads campaigns. They leverage Google’s AI and machine learning to determine when and where to deliver your ads across Google’s advertising Network (Search, Display, YouTube, Maps, Gmail, Discover, Shopping, etc).

Google created these campaigns to help advertisers maximize conversions and conversion value with the power of Google’s AI. By serving your ads on the best performing channels, PMax campaigns ensure targeted reach, higher relevance, and improved return on ad spend (ROAS)—all while reducing the manual effort required to manage multiple campaigns.

For those considering upgrading Dynamic Search Ads to Performance Max, this transition can streamline and enhance ad performance.

What sets PMax apart from other campaign types is largely the ‘automation’ functionality and its ability to run across all Google channels, all within a single campaign.

In contrast, some parts of traditional campaigns like Search or Display Ads require manual segmentation and targeting these include defining keywords, setting bids, choosing placements, and managing each channel separately.

PMax uses machine learning to optimize bids, creative, and ad placements in real time based on your goals, audience signals, and asset performance.

If you are an e-commerce merchant then you can effortlessly scale your store across all Google channels using PMax. Since targets multiple channels within a single campaign, it reduces manual intervention and cuts down on time and costs.

Connect your product feed in Google Merchant Center, and PMax will automatically generate Google Shopping Ads. These ads appear across all Google-owned properties, such as the shopping tab, search results, display network, YouTube, Gmail, and discovery feed. This is the key difference between PMax and Standard Shopping.

1. Setting Up Your PMax Campaigns For Success

#1 Choosing the right campaign objective

Choose a PMax campaign objective that aligns with your primary goal. Google Ads currently offers seven objectives (sales, leads, website traffic, app promotion, etc).

Sales, leads, and website traffic further have conversion goals (refer to the screenshot above) that help you organize your conversion actions into categories to optimize your bidding and reporting.

After selecting an objective, Google Ads will then suggest relevant and recommended features and settings to help you achieve your primary goal.

#2 Budget allocation strategies

Next, consider your budget allocation strategies. Set a daily budget and choose a bidding strategy, such as maximizing conversions or conversion value. Your daily budget is the maximum average spend per day. On high-performing days, Google might spend twice that amount. It could underspend your daily budget, too.

Pro Tip: Avoid using target ROAS and CPA when you are in the testing phase. Give your campaigns some time to gather conversion data so you can devise an informed bidding strategy.

Your monthly average won’t exceed your daily budget multiplied by 30.4.

For example,

Daily budget = $50

Average monthly budget = $50 x 30.4 = $1520

Day 1 – $50

Day 2 (high performing day) – $100

Day 3 – $40

…and so on

To effectively use your budget, experts recommend:

Starting with a test budget of $50 to $100 daily. PMax campaigns are all about optimizing based on the data collected. With a test budget, you allow Google’s AI sufficient time to gather data—after which you can start increasing your budget based on the results. Experts recommend allowing the algorithm at least 6 weeks to fully ramp up and optimize.

Separate high margin and low-margin products by splitting them into different asset groups or separate campaigns. Allocate more budget to products to best selling product groups. Use listing group exclusions to control the products. PMax also offers a ‘feed only’ option if you want to exclusively run Shopping Style ads–it uses the data from your Merchant Center product feed, without using additional creative assets.

Avoid creating too many asset groups. More asset groups mean more budget splitting. Start with 1 to 2 focus asset groups and then scale based on the performance.

Use campaign exclusions to avoid budget waste. Run separate search campaigns for branded queries and exclude them from PMax.

Consider allocating more budget to the campaign that performs better — whether it’s Performance Max or Standard Shopping. If you are running both, the campaign with the higher rank will serve the ad.

#3 Importance of conversion tracking

Conversion tracking allows advertisers to track which ads or campaigns are driving conversion actions. These actions include sign ups, app installs or purchases. The process of setting up conversion tracking is fairly straightforward, it involves creating a ‘conversion action’ within your Google Ads account and then setting up the Google tag on your website or app.

With reference to PMax campaigns, it is especially important because PMax uses this conversion data to analyze customer behavior to optimize your campaigns to drive more conversions. The algorithm automatically adjusts bids, targeting, creative assets to maximize conversions and conversion value.

2. Crafting Effective Asset Groups

Asset groups are a collection of creative assets such as headlines, descriptions, images, logos, and videos. PMax campaigns use them to create ads within a campaign. These assets generate ads through Google AI in various formats optimized for different Google channels.

As part of Performance Max campaigns best practices, crafting effective asset groups is essential for driving better results. Here’s how to do it right:

Treat each asset group as a mini campaign. Each asset group should focus on a product category or an intent.
Use each asset slot when inputting data—more input = better output.

Refer to the table below detailing all the PMax assets types and their specifications.

Performance Max Asset Group: Inputs & Recommendations

Asset Type	Requirement	Google’s Recommendation	Specs / Limits
Final URL	Required	Match theme or product category	Use product/category-specific landing pages
Final URL Expansion	Optional but enabled by default	Allow Google to select the most relevant URL from your site	Disable if you want full control over landing page selection
Headline (Short)	Min: 3 / Max: 5	Use benefit-driven or keyword-rich headlines	Max 30 characters each
Long Headline	Min: 1 / Max: 5	Write full value prop or hook-based copy	Max 90 characters
Description	Min: 2 / Max: 5	Add CTAs, USPs, or guarantees	Max 90 characters each
Business Name	Required	Must match your official business name	Max 25 characters
Images	Min: 1 / Up to 20	Use square, landscape, and portrait formats	• 1200×628 px (landscape)• 1200×1200 px (square)• 960×1200 px (portrait)
Logos	Min: 1 / Up to 5	Use clear 1:1 and 4:1 logos	• 1200×1200 px (1:1)• 1200×300 px (4:1)
Videos	Optional (Recommended)	Upload 1–2 branded short-form videos(If you don’t upload your own video, Google will auto-generate one for you, which is often low in quality.)	10–30 seconds, 16:9 aspect ratio
CTA (Call to Action)	Optional	Let Google auto-generate or select manually	Options: Shop Now, Learn More, etc.
Path Fields	Optional	Create clean display URLs	Max 15 characters per segment
Ad Extensions	Optional (Recommended)	Use sitelinks, callouts, and structured snippets	Boosts CTR and SERP presence

Replace underperforming assets instead of removing them. Google recommends refreshing outdated or “low” performing assets at least once every 3 months. Google offers asset reports for detailed insights.

Each asset group also has its own set of unique audience signals. PMax Audience signals are data points for Google’s AI to understand and target the right audience for your ads. These ‘signals’ guide the machine learning algorithm to reach those leads that are the most likely to convert.

Feed this data into your Google Ads account, extracting it from website visitor lists, existing customer data, remarketing & customer match lists, app user lists, custom segments, or video viewer lists.

After adding assets in your PMax campaigns, you receive performance rankings for each asset. You receive a rating of Low, Good, or Best. Use this to judge the quality of your asset.

3. Leveraging Audience Signals

Audience signals help Google’s AI identify your ideal customers through the data points added by you. Audience signals don’t strictly target, rather they give the algorithm a “head start” by telling it where to begin and who it should prioritize early in the campaign.

Here’s how they work:

You start by adding signals to your PMax campaign. In your Google Ads account, navigate to Audiences > Asset Group > select “Create an Audience” or “Select an Audience” > name your audience signal > add your data > Save.

Google’s AI then studies the data—it analyzes their interests, demographics, devices, search behavior, location, etc. It then starts finding similar users who are likely to convert.

As additional data points for audience signals, advertisers should create custom segments and use the Customer Match feature. This ‘seeding’ strategy uses existing customer data to target potential customers.

Custom segments help you reach ideal customers based on the keywords they are searching for, apps they are using, and URLs they are visiting. To create them, go to Google Ads > Tools & Settings > Audience Manager > Custom Segments. For example, you can enter your competitor’s website URL since those are the exact leads you wish to target.

Customer Match allows you to upload your own customer data that you have collected over time. Data such as email addresses, phone numbers, mailing addresses, age, gender, etc. To upload this data, go to Google Ads > Tools & Settings > Audience Manager > Customer Lists. Other types of lists you can upload are past purchasers, abandoned cart users, newsletter subscribers, loyalty members, and high AOV (average order value) customers. This data will help Google’s AI find similar customers or even retarget them.

When all these elements play out together, your PMax campaign will bring in excellent results.

Pro Tip: Use PMax search themes alongside audience signals. Search themes guide Google’s AI to which queries your PMax campaign should target.

4. Optimizing Creative Assets

#1 Designing compelling visuals and ad copy

Compelling visuals and ad copies must work together to drive action. In a PMax campaign your visuals and their corresponding copies appear across Youtube, Gmail, Search, Discover, etc—so they must be impactful enough to prompt clicks or conversions. Include variations that cater to each stage of the customer journey to reach every type of audience.

Next, let’s explore some helpful tips for creating impactful images and ad copy for PMax campaigns.

Image tips: Ensure image specifications are followed to avoid image asset disapprovals. Add relevant images to the queries they will show for. Use high-resolution images that highlight the benefits of your products or how they resolve a pain point. Avoid adding too much text in your visuals, as they can be cropped or downscaled. Include images with overlays but it’s recommended to use at least one image without overlays for each aspect ratio. Use dynamic image assets (extracted from your landing page) alongside image assets.

Copy tips: To create an effective Google Ads copy ensure headline and description assets follow the specifications provided by Google. Include a mix of promotional hooks (e.g., “Limited time offer”) and value propositions (e.g., “Free shipping on all orders”).

Pro Tip: Beyond creative assets, PMax campaigns can also use “ad extensions” (now known only as assets). These include sitelinks extensions, lead form extensions, call extensions, callout extensions, and more. Include extensions that apply universally to your PMax goals—this will help increase conversions.

#2 A/B testing different creatives

While PMax automatically shuffles your ad creatives, you should still test each asset’s performance. Keep a keen eye on asset performance labels, and swap assets every few weeks. Create separate asset groups that target different audience signals with creative variations. Review the assets report to understand the performance of each asset and make strategic decisions to remove, rotate, or improve

#3 Incorporating brand elements effectively

Having consistent branding enhances recognition and ensures a unified brand experience. Include your logo in every image, maintain brand colors & fonts, and use video assets where possible.

5. Monitoring and Adjusting Campaigns

Google offers several PMax reports, even though the campaigns are automated.

These reports can help in determining what’s working and what’s not.

The reports to track are:

Asset performance report
Asset group reporting
Combinations report
Placements report
Search term insights report
Audience insights report
Auction insights report
Google Ads reports

These reports contain key metrics for optimizing your campaigns.

Here are the key metrics to track , what they indicate, and what to do with their data:

Conversions: If conversions are low, then consider reviewing your asset quality, landing page UX, and audience relevance. Review the asset performance report, pay close attention to the performance labels–they are a combination of clicks, conversions, etc. The audience insights report shows which segments drive the most conversions and engagement.
Conversion Value: Conversion values will allow you to infer your ROAS. If you have 30 to 50 conversions in a month, then use target ROAS bidding. Increase budget allocation to high ROAS campaigns or product groups. Review asset groups driving low ROAS and adjust creatives or targeting accordingly.
Click-Through-Rate (CTR): If you have a low CTR, then consider swapping underperforming assets rate as “Low”, test different headlines, and fine tune audience signals to improve relevancy.
Cost Per Conversion: If your cost per conversion is too high, reduce bids or budget. Try to improve asset relevance, improve product feed quality and landing pages. Exclude low performing locations and audiences.
Asset Performance Ratings: Replace “Low” assets regularly. “Best” assets can be repurposed with other asset groups.

Common Mistakes to Avoid When Running PMax Campaigns

Let’s briefly discuss the common mistakes made when running PMax campaigns and how to fix them.

1. Overlooking audience signal importance

Skipping or poorly inputting audience signals gives Google’s AI less context for early optimization. This in turn wastes your ad spend on low intent users.

For instance, create a custom audience of users who visited a product page but abandoned their cart. Use first-party data, custom segments and Customer Match to narrow targeting. Regularly review the Audience Insight report to refine audience signals.

2. Neglecting asset quality

As you may have gathered by now, PMax is asset driven. The performance of your ads is dependent on the quality of your assets i.e., headlines, images, videos, and descriptions. Using low quality assets like generic stock images, vague headlines, text overlaps in images, no video assets or a lack of brand identifying features will lead to poor conversion rates.

Use tools like Canva or Adobe Photoshop to design high quality images. Upload high resolution image assets tailored for each funnel stage. Ensure you add a video asset (you can create one using video editing software) to tap into Youtube’s ad placement. Periodically monitor the Asset Performance Report and rotate assets marked as “Low”.

3. Ignoring performance data

A common misconception amongst many advertisers is to create PMax campaigns and let them be, because of their automated nature. Ignoring performance data leads to overspending on underperforming creatives, audiences, locations, or placements. Check the aforementioned reports and key metrics to continually optimize your PMax campaigns.

Advanced Strategies for Performance Max Campaigns

The following advanced strategies help advertisers gain some control over the automated nature of PMax campaigns.

1. Segmenting branded vs. non-branded traffic

To ensure your PMax campaigns aren’t targeting easy branded conversions you should segment branded vs. non-branded traffic. This should be undertaken so that new customer acquisitions aren’t underserved.

By accessing the Search Terms Insights you can understand if your performance is driven by branded or non-branded terms.

If branded queries dominate traffic, try these strategies:

Split it into two campaigns, one focused on branded traffic and the other on non-branded through audience signals.
Or you can run a separate Search Campaign for branded terms and try to guide PMax to non-branded terms by excluding your brand from audience signals.

2. Utilizing negative keywords effectively

Use negative keywords in PMax campaigns to prevent ads from showing up for irrelevant searches, improving targeting and maximizing ROI.

Here once again, access the Search Term Insights to handpick irrelevant or low intent terms (e.g., exclude competitor names or unrelated product categories).

Add negative keywords by clicking Keywords in the campaign menu, then Negative Keywords Tab, and the + button. You can add negative keywords at the campaign level, too.

Conclusion

Performance Max campaigns offer powerful automation, but their success depends on how well you guide Google’s AI. Set clear goals, add strong creative assets, use audience signals, follow Google’s guidelines, and continuously analyze performance data to maximize results across all Google channels.

Implement these PMax best practices to get the most out of your Performance Max campaigns!

Over to you!

FAQs

How do I optimize a Performance Max campaign for better ROI?

Focus on adding and creating high quality creative assets, use audience signals, search themes, and regularly monitor performance metrics to optimize your PMax campaigns.

What are the key settings to monitor in Performance Max campaigns?

Keep an eye on asset group performance, audience signal effectiveness, conversion tracking accuracy, use Google’s Looker Studio tool to access insights. Read this blog for more details on PMax reporting.

How does audience signal impact Performance Max performance?

Audience signals guide Google’s AI in targeting the most relevant users, enhancing campaign efficiency and effectiveness.

Should I separate branded and non-branded traffic in Performance Max?

Yes, segmenting allows for more precise targeting and better allocation of budget based on user intent.

What are the best creative asset strategies for Performance Max?

Use diverse and high-quality visuals, compelling ad copy, and ensure consistency across all assets to engage users effectively.

What are the common mistakes to avoid in Performance Max campaigns?

Avoid neglecting audience signals, using low-quality assets, and failing to analyze performance data for ongoing optimization.

Check Out These Related Articles: