Google Ads Performance Max Replaces Smart Shopping & Local Campaigns
Performance Max or Google PMax is set to replace Smart Shopping and Local campaigns in 2022. Are you ready?
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Leading eCommerce platforms such as Shopify, WooCommerce, and BigCommerce are already hard at work to support Google PMax’s new inventory insights and formats.
While building on Smart Shopping and Local campaign features, new Performance Max campaigns offer new features, including inventory and automation insights.
All online merchants and eCommerce partners will be able to upgrade their Smart Shopping and Local campaigns through the Google Ads API later this year. (You can read more about this on Google’s developer blog.)
So, with PMax coming, how can eCommerce marketers ensure they are ready?
By following this Google Performance Max guide and implementing key Google PMax upgrade and optimization hacks.
In this post, we take you everything you need to know about Performance Max campaigns and upgrades. Including:
- What Is Google Performance Max
- How Do Performance Max Campaigns Work
- Performance Max Requirements and Eligibility
- Key Milestones: When and How to Upgrade to Google PMax
- Google Performance Max Campaign Features
- Google Performance Max Campaign Best Practices
Google PMax: Everything You Need to Know
1. What Is Google Performance Max
Performance Max is a goal-based campaign type that uses automation and machine learning to reach potential shoppers with the most relevant ad.
Ultimately, Performance Max campaigns have been developed by Google to increase conversions across their entire advertising and inventory channels. In short: they use automation to create a holistic omnichannel Google experience.
[Source: Google]
Google Performance Max Stats
Let’s take a quick look at some stats that back up the need for the Google Ads Performance Max upgrades:
- More than half of 2021 holiday shoppers (54%) used at least five channels, such as video and social media, to shop over a two-day period.
- Advertisers who upgraded Smart Shopping campaigns to Performance Max (during Beta testing) saw a 12% average increase in conversion value while matching or bettering their Google Ads ROAS.
This new Google Ads automation is designed to help advertisers to reach shoppers as they browse multiple channels for things they love, online and in stores. Ultimately, it creates a more omnichannel shopping experience that will boost ROAS.
2. How Do Performance Max Campaigns Work
Building on performance features of Smart Shopping and Local campaigns, Google PMax will include new inventory and automation insights features. These features will enable stores to boost omnichannel sales by “unlocking all of Google’s ad inventory from a single campaign with a product feed.”
Example:
Marketers will be able to transform their Video ads into a digital storefront while highlighting their top products on YouTube – right where valuable customers are watching relevant video content every day.
According to Google, Performance Max will help eCommerce marketers achieve their goals in four main ways:
- Increasing conversions and value
- Reaching new customers
- Adding PPC automation
- Accessing richer insights
[Source: Google]
In a nutshell: After upgrading to Google’s Performance Max you will have access to additional inventory and formats across YouTube, Search text ads, and Discover. Here are the top benefits.
Google Performance Max Benefits
According to Google, benefits of Performance Max upgrades include that it:
- Simplifies eCommerce Google campaign management and optimization
- Offers more transparent insights
- Reaches new audiences across Google’s channels and network
- Drives better performance against goals
- Uses campaign inputs to steer automation
3. Performance Max Requirements and Eligibility
Before we get into more detail on role-out, benefits, features, and optimization of Performance Max campaigns, let’s discuss eligibility and requirements.
As it stands now, Google lists the following eligibility and requirements for retailers with a Merchant Center feed who want to create PMax campaigns:
- In Europe: Performance Max campaigns can be used with any Comparison Shopping Service (CSS) a brand works with.
- Advertisers will be able to create up to 100 Performance Max campaigns, with Google suggesting marketers consolidate where possible.
- Any eCommerce marketer with a Merchant Center feed can create Performance Max campaigns. Additionally, those with established feeds will not need to add creatives to the campaign Asset group.
Additionally, according to Google, Performance Max is the best option for marketers when:
- Marketers want to be able to reach all of Google’s channels from a single campaign.
- Brands want to maximize campaign performance and ensure they are not limited by specific channels.
- Store advertisers have set specific advertising and conversion goals.
- Marketers are looking for additional reach and conversion value beyond keyword-based search campaigns.
Read the rest of this article at Google Ads Performance Max Replaces Smart Shopping & Local Campaigns.