Google works hard to push the use of Performance Max campaigns for any purpose from trying to make eCommerce sales, through to generating leads (even for complex B2B solutions where typically lead generation is a result of being on the 'day one' consideration list ... more on this in upcoming content)
I've seen it time and time again that Performance Max generates compelling "headline figures" (particularly for eCommerce where advertisers often enjoy a strong ROAS, according to Google justifying further investment into Performance Max).
However, Performance Max campaigns often generate a great deal of their supposed "performance" from two areas:
- Branded search - i.e. capturing prospective customers who have heard about your business somewhere else (e.g. viewing a Facebook post, or seeing a billboard, or via referral/WoM) who then go on to Google your brand name.
- Retargeting/remarketing - follow up ads that chase you around the Internet. Once again implying/requiring an existing experience with your brand.
At a basic level, what Performance Max often does is helps you to pay Google to bring you customers who may well have otherwise purchased from your business, or inquired about your services/solutions (without having needed to click on your Google ad).
With a cynical hat on, Performance Max therefore can help Google take credit for purchases that would have otherwise occurred as the purchase decision had been influenced elsewhere, giving an impression of better performance than might really be the case.
At the same time, Google is able to sell you lower quality inventory (e.g. poorly targeted display ads) by hiding this within the context of strong headline figures relating to conversions, conversion rate, ROAS etc - depending on your objectives.
That isn't to say that Performance Max cannot bring "new" customers/leads to the table, but at the very least you need to be aware of the opaque nature of what is typically happening and make decisions accordingly.
If you are running Performance Max campaigns for your business and you aren't sure exactly what you're getting performance-wise, contact me for an independent analysis.