If you want to maximize Performance Max, getting your conversion tracking and campaign goals right is crucial. Focus on your most valuable actions to ensure accuracy and guide the algorithm’s optimizations.
Setting up an effective bidding strategy in Performance Max is another prerequisite to scaling, but these will need to factor in the maturity of your business. Performance Max gives us three options:
- Maximize conversions
- Target ROAS
- Target CPA
Maximizing conversions is great for new businesses that don’t have a lot of data and need inputs to learn about customers. As your business matures and you have more information, you can start to play around with bidding strategies like target ROAS for ecommerce and target CPA for lead generation.
Also, Martin recommends a consolidated campaign structure and asset groups based on products in Performance Max, which gives you the ability to focus on gross profit segments rather than the entire product catalog. This also makes it easier for the automated systems to generate creative outputs with the right assets.
Speaking of which, Performance Max will need a range of high-quality creative assets to generate effective ads that convert customers in Google’s shopping placements.
In addition to creative assets, keep in mind that optimized Performance Max campaigns work best when you have:
- High search volume or a super niche product
- Shoppable products
- Higher budgets
- A warming-up period to guide the algorithm
- Lots of customer data
Finally, when you do start to scale, it’s extremely important to find the sweet spot for your target ROAS and increase it incrementally over time. Too high, and you’ll lose out on revenue due to a reduced number of clicks and impressions. Too low and you’ll end up with lower-quality traffic, which also leaves money on the table.