Google Performance Max campaigns (PMAX): The ultimate guide in 2025

Performance Max campaigns (PMAX) have become the centerpiece of Google Ads automation. What started as an experiment in 2021 is now the default campaign type for many advertisers.

With Google Performance Max campaigns, you can reach customers across Search Ads, Shopping, YouTube, Display, Discover, Gmail, and Maps, all from one setup.

Key Takeaways

Before diving into the details, here’s a quick overview of what you’ll learn in this article. These highlights will help you quickly understand why Performance Max is worth your attention.

• PMAX campaigns unify all Google Ads channels under one goal-driven strategy

• How automation in 2025 is smarter with audience signals, AI-driven bidding, and feed optimization

• Why advertisers must balance automation with strategic input (conversion tracking, negative keywords, feed setup)

• The reasons PMAX complements, not replaces, search campaigns

What is Google Performance Max (PMAX), and why is it important in 2025?

Performance Max has evolved into Google’s flagship campaign type. It’s designed to simplify complex advertising strategies by allowing AI to take over bidding, targeting, and ad placements, while giving marketers the flexibility to focus on strategy.

Performance Max is the new default beyond PPC optimization for launching ad campaigns, with the goal of smoothing out the performance and budget process to bring the best results for advertisers and businesses.

Google Performance Max campaigns: How do they work?

Understanding how Performance Max for Google works is important before launching your first campaign. At its core, it combines multiple Google Ads tools and channels into a single, automated campaign, but with strategic levers advertisers can still pull.

Performance Max campaigns simplify complexity by automating:

1. Asset optimization → Upload headlines, descriptions, logos, images, videos. Google tests and delivers the best-performing combinations.

2. Cross-channel advertising → Reach audiences on Search, Shopping, YouTube, Display, Discover, Gmail, and Maps simultaneously.

3. Smart bidding → Choose between Target CPA, Target ROAS, or Maximize Conversions. AI adjusts in real time.

4. Audience signals → Direct AI by providing signals and guidance (first-party data, remarketing, or custom audiences).

Performance Max vs Smart Shopping

Smart Shopping was the predecessor of Performance Max, and all campaigns were automatically upgraded by Google by the end of 2022. While they share the same foundation, PMAX has expanded far beyond Smart Shopping.

Key differences:

• Channel reach – Smart Shopping focused on Shopping and Display, while PMAX also covers YouTube, Discovery, Gmail, Search, and Maps.

• Campaign structure – Smart Shopping used ad groups and product groups. PMAX replaces these with asset groups (collections of creatives) and listing groups (organized product lists).

• Conversion goals – Smart Shopping optimized only for sales. PMAX lets you set multiple goals and assign different values to each.

• Visibility & AI – PMAX combines smart bidding with advanced targeting, making ads more visible and adaptable to business objectives.

In short, Smart Shopping was narrower and sales-focused, while Performance Max is broader, smarter, and aligned with multiple goals.

Advantages of using Google Performance Max

Why should advertisers switch fully to Performance Max in 2025? Beyond automation, PMAX provides a wider reach, more advanced AI targeting, and stronger integration with Google’s ecosystem.

Why advertisers chose PMAX:

1. More conversions – Machine learning improves targeting and ROI.

2. Time savings – Manage one campaign instead of many.

3. New customer growth – Advanced signals help acquire more audiences.

4. Complements Search campaigns – Expands reach without replacing core search.

5. One campaign, more reach – Covers all of Google’s ecosystem with a single setup.

Disadvantages of Using Performance Max

Like any use of technology, PMAX isn’t without challenges. Advertisers must balance automation with oversight, ensuring they don’t lose control over data transparency or campaign strategy.

1. Cannibalization risk – May overlap with existing campaigns if unmanaged.

2. Limited transparency – Granular keyword data is still missing for optimization.

3. AI dependency – Less manual control compared to traditional campaigns.

How to set up a Performance Max Campaign

Setting up a PMAX campaign is more streamlined than traditional Google Ads campaigns, but it requires thoughtful preparation. From budgets to assets, each step plays a role in determining success.

1. Log into Google Ads → New Campaign → Choose Goal (Sales, Leads, or Website Traffic).

2. Select Performance Max as the campaign type.

3. Set your budget & bidding strategy (Target CPA or Target ROAS).

4. Define targeting: locations, languages, conversion goals.

5. Create asset groups with images, logos, videos, headlines, sitelinks, and audience signals.

6. Review & launch.

Performance Max tips: Do’s and Don’ts

Even though PMAX is automated, advertisers can’t simply “set it and forget it.” Following best practices ensures the algorithm works in your favor while avoiding mistakes.

Do’s:

• Maintain accurate conversion tracking (CRM + offline imports recommended).

• Use lifestyle images instead of only Merchant Center product photos.

• Create a Performance Max category in GA4 for deeper insights.

• Segment campaigns by product groups for better budget control.

Don’ts:

• Don’t target your own branded keywords with PMAX.

• Avoid duplicating Merchant Center feed images in asset groups.

• Don’t rely solely on auto-generated videos.

Optimization areas for Performance Max

Optimization is where advanced advertisers gain an edge. Since Google automates most of the campaign, your job is to fine-tune inputs like feeds, audience signals, and creative assets to maximize results.

1. Feed optimization – Use custom labels, optimized titles, and A/B testing.

2. Account structure – Fewer campaigns = better data pooling. Minimum 20–30 conversions/month per campaign.

3. Asset groups – Test multiple groups (different products/audiences).

4. Video assets – Upload branded videos to avoid poor Google auto-creations.

5. Negative keywords – Currently account-level only.

6. Final URL expansion – Decide between sending traffic to all relevant URLs or just specified ones.

Useful features in 2025

Google continues to release new features that make PMAX smarter and more adaptable. These tools help advertisers improve campaign control without reducing the benefits of automation.

• New customer acquisition goals (NCA) – Separate new vs existing users.

• Audience signals – Guide AI without losing automation benefits.

• GA4 integration – Expanded PMAX reporting.

• Channable Integration – Simplify feed optimization & campaign management.

FAQs

Before wrapping up, here are answers to the most common Performance Max questions in 2025.

What is a Google Performance Max campaign?

It’s a fully automated campaign type that runs across all Google Ads channels to maximize conversions and ROI.

How long until results show?

Allow 1–2 weeks for the algorithm’s learning phase.

Is PMAX better than Smart Shopping?

Yes, it covers more channels and supports multiple conversion goals.

Should I replace search campaigns with PMAX?

No. Run both together. PMAX complements search but doesn’t replace it.

How can I optimize my PMAX campaigns in 2025?

Focus on feed optimization, audience signals, conversion tracking, and custom video assets.

Automation moving forward

Performance Max has become Google Ads’ backbone. It simplifies campaign management, improves efficiency, and enables advertisers to scale across multiple channels without losing sight of ROI. The key to success lies in combining automation with smart optimization strategies.

If you want to take your campaigns further, solutions like PPC optimization and Google Ads Automation inside Channable can help maximize your Performance Max results.

External Resource: Search Engine Journal: Google Ads Updates