Skip links
social marketing 101 blog template

Marketing 101 – What is Performance Max and how does it work?

In today’s digital era, online advertising has become one of the primary ways of reaching out and connecting with potential customers. And Google advertising is undoubtedly the king of online advertising. Google has been constantly introducing new features and updates to its advertising platform, enabling businesses to reach their target audience effectively. One of the latest additions to the platform is the Performance Max campaign.

What is Performance Max?

Performance Max is a new campaign type introduced by Google in 2021. It is designed to help advertisers maximise their online performance across multiple Google ad channels by using AI and automation. Performance Max combines different ad formats like Display, Search, YouTube, and Discover ads, and places them on relevant platforms to reach the right audience. In simpler words, it’s a single automated campaign that allows businesses to advertise across all relevant Google networks.

One of the primary objectives of Performance Max is to offer advertisers improved and easy access to Google’s machine learning algorithms, which helps in optimising the ad campaign. These algorithms use various signals such as search intent, demographics, location, and behaviour, to determine which ad format works best in which scenario.

How does Performance Max work?

Unlike other campaign types on Google, Performance Max does not require advertisers to set up individual campaigns for each ad format. Instead, you’ll set up one campaign and give inputs such as headlines, descriptions and images in various sizes. By default, Google Ads will select “automatically created assets” which means Google Ads can automatically create new text assets based on content from your website, you can deselect this if it’s not something you want to have on your campaign.

Advertisers set a single budget, and the machine learning algorithms choose the best ad format to run based on the campaign’s performance. Performance Max uses an auction system that evaluates different ad formats’ performance and selects the best ad format to run based on previous campaign performance data.

Performance Max campaigns are optimised for conversions, and Google uses data from previous campaigns to predict which audiences will be more likely to engage with the ad. These predictions are made by analysing user behaviour and demographic data from previous ad campaigns. With Performance Max, businesses can reach the right audience with the right message, thus increasing the chances of conversions. Before starting a Performance Max campaign, check out this blog by WordStream – 6 Things to Do BEFORE You Launch a Performance Max Campaign.

Benefits of Performance Max

There are several benefits of using Performance Max campaigns for online advertising, including:

1. Increased reach

One of the primary benefits of Performance Max is its ability to reach a wider audience across multiple Google networks. With Performance Max, advertisers can leverage Google’s machine learning algorithms to reach potential customers that they may have missed otherwise. Performance Max can also help businesses reach potential customers at various stages of the conversion funnel.

2. Improved performance

Traditional advertising campaigns require manual intervention to optimise performance, which is both time-consuming and complex. Performance Max uses Google’s machine learning algorithms to automatically optimise the campaign’s performance, reducing the time needed for manual optimizations.

3. Better audience targeting

With Performance Max, businesses can leverage Google’s machine learning algorithms to find potential customers who have shown interest in similar products/services, even if they haven’t searched for a particular keyword. Performance Max can help businesses reach new audiences, allowing them to expand their customer base.

4. Simplified campaign management

Performance Max simplifies campaign management by combining all ad formats in a single campaign, reducing the time needed for campaign setup and optimization. Advertisers need to set a single budget, and Google’s algorithms take care of the rest.


Performance Max campaigns are an advanced advertising feature that enables businesses to reach their target audience across multiple Google networks. They combine ad formats like Search, Display, YouTube, and Discover to reach the right audience with the right message. Performance Max is ideal for businesses seeking to increase their reach and generate more conversions. By leveraging Google’s machine learning algorithms, businesses can streamline their advertising efforts, driving their business forward.

This website uses cookies to improve your web experience.