5 Performance Max Campaign Myths That Need to Die

Are your Performance Max campaigns draining your brand search budget? You're not alone. Many eCommerce managers and digital marketers face this exact problem: Performance Max campaigns, while promising automation and broad reach, can sometimes eat into existing brand campaigns, leading to confusion and wasted ad spend. Sound familiar?

This guide cuts through the noise and debunks five common myths about Performance Max campaigns. I'll give you actionable insights to help you optimize your strategies and get better results.

Why These Myths Persist

Let's be honest—the allure of automation is strong. Performance Max campaigns promise ease of setup and management, using Google's AI to find the best-performing placements and audiences. This is incredibly attractive, especially for teams with limited resources. However, this automation can also lead to a lack of control and transparency, making it difficult to understand how campaigns are performing and whether they're truly delivering the desired results.

Also, the rapid evolution of Google Ads and the constant introduction of new features contribute to the spread of misinformation. It's easy for outdated or incomplete information to circulate, leading to misconceptions that can negatively impact campaign performance.

Myth #1: Performance Max Always Outperforms Brand Search

Reality: While Performance Max campaigns often show a strong return on ad spend (ROAS) on the surface, they don't always outperform dedicated brand search campaigns. The main issue? Cannibalization. Performance Max might capture clicks that your brand search campaigns would have gotten anyway, potentially inflating ROAS without generating more revenue.

I noticed that my dedicated Brand Search campaign spend has dropped significantly, and PMax is now picking up almost all the brand traffic. The ROAS looks great on paper, but I’m worried it’s just cannibalizing sales I would have gotten anyway for cheaper. - Reddit User (Source)

This user's concern is a common one. Performance Max might appear successful due to its broad reach, but it can be misleading if it's simply replacing cheaper, more targeted brand searches.

Specific Example: Imagine an eCommerce store selling shoes. A customer searching for "[Your Brand] running shoes" is highly likely to convert. If Performance Max captures this click, it might show a good ROAS. However, a dedicated brand search campaign could have achieved the same conversion at a lower cost per click (CPC).

Myth #2: You Can't Control Brand Search with Performance Max

Reality: While Performance Max is highly automated, you can manage and control its impact on your brand search campaigns. The key? Use negative keywords and audience exclusions effectively.

• Negative Keywords: Adding your brand terms as negative keywords in your Performance Max campaigns is crucial. This prevents the campaign from bidding on those terms, allowing your brand search campaigns to capture that traffic. Many marketers use this approach to manage this issue.
• Audience Signals: Utilize audience signals to help guide the AI. While you can't guarantee that the campaign will target only those audiences, it can help the algorithm focus on the right users. This isn't always easy, but it can help.

Myth #3: Performance Max is Always the Best Option for New Products

Reality: While Performance Max can be effective for launching new products, it's not always the best approach. Its broad reach can lead to wasted ad spend if the product isn't well-defined or targeted. In some cases, a more focused approach, such as Search campaigns, Shopping campaigns, or Discovery campaigns, might be more effective.

Comparison Table:

For new products, consider using a combination of these campaign types. Start with a more targeted campaign (Search or Shopping) to gauge initial interest and then expand to Performance Max if it makes sense.

Myth #4: You Don't Need to Monitor Performance Max Campaigns Closely

Reality: Because of its automated nature, some marketers assume Performance Max campaigns require minimal monitoring. This is a dangerous misconception. Regular monitoring is essential to ensure that the campaigns are performing as expected and not cannibalizing other campaigns or wasting ad spend.

The ROAS looks great on paper, but I’m worried it’s just cannibalizing sales I would have gotten anyway for cheaper. - A concerned PPC specialist (Source)

Monitoring should include:

• ROAS and Conversion Rates: Track these metrics closely to ensure that the campaigns are generating a positive return.
• Search Term Reports: Review search term reports to identify any unexpected keywords or cannibalization issues.
• Campaign Settings: Regularly review your campaign settings, including negative keywords, audience signals, and budget allocation.

I find myself constantly checking the search terms used and adjusting negative keywords to control this. - Another Reddit user

Myth #5: Performance Max is Always the Cheapest Option

Reality: While Performance Max can be cost-effective, it's not always the cheapest option. The cost-effectiveness depends on various factors, including the competitiveness of your industry, the quality of your ad creatives, and the overall performance of your website.

• High CPCs: In competitive industries, Performance Max campaigns can have high CPCs, especially if they're bidding on generic keywords. Your brand search campaigns might be more cost-effective.
• Landing Page Quality: A high-quality landing page with a clear call to action can improve conversion rates and lower your cost per acquisition (CPA). Performance Max campaigns often drive traffic to a variety of landing pages, so optimizing each one is crucial.
• Testing and Optimization: A/B testing different ad creatives, landing pages, and audience targeting options can help you optimize your campaign performance and reduce costs. Implement an ongoing testing strategy to get the best results.

What Actually Works

To effectively manage Performance Max campaigns and avoid these common myths, consider these strategies:

1. Prioritize Brand Search: Ensure your brand search campaigns are running effectively. These campaigns should be your priority, as they target users actively searching for your brand.
2. Use Negative Keywords: Implement a comprehensive negative keyword strategy in your Performance Max campaigns to prevent cannibalization. Include your brand terms and any other keywords you want to exclude.
3. Monitor Regularly: Track the performance of both your Performance Max and brand search campaigns closely. Analyze search term reports, conversion rates, and ROAS to identify any issues.
4. Test and Optimize: A/B test different ad creatives, landing pages, and audience targeting options to improve campaign performance. Continuously optimize your campaigns based on the results.
5. Segment Campaigns: Consider segmenting your Performance Max campaigns by product category or target audience. This allows for more granular control and optimization.

Ultimately, by debunking these myths and implementing these strategies, eCommerce managers and digital marketers can harness the power of Performance Max campaigns without sacrificing the performance of their brand search campaigns. Remember that a data-driven approach, continuous monitoring, and optimization are essential for success.

Actionable Takeaways for eCommerce Managers:

• Audit Your Campaigns: Conduct a thorough audit of your Google Ads campaigns to identify any potential cannibalization issues.
• Implement Negative Keywords: Add your brand terms as negative keywords in your Performance Max campaigns.
• Monitor Performance Daily: Track ROAS, conversion rates, and other key metrics daily.
• Test and Iterate: Continuously test different ad creatives, landing pages, and targeting options.
• Use CRO Benchmark: Use CRO Benchmark to help identify areas of improvement and see how your website stacks up against competitors.