Understanding Google’s Performance Max (PMax) Campaigns

Google launched Performance Max (PMax) campaigns for all advertisers in November 2021 after a year of beta testing, following an initial announcement in late 2020. PMax campaign type was designed to leverage machine learning and automation to help businesses reach potential customers across multiple Google-owned platforms.

What Are PMax Campaigns?

Performance Max is a fully automated Google Ads campaign type that aims to:

  • Generate leads
  • Drive sales
  • Increase in-store visits

It does this by distributing ads across Google’s entire ad network, which reaches 90% of global internet users, including:

  • Search
  • YouTube
  • Display Network
  • Gmail
  • Maps
  • Discover

How Do PMax Campaigns Work?

Performance Max campaigns:

  • Extend visibility by covering additional platforms like Google Maps and Discover.
  • Leverage Google’s AI and data insights to determine the best audience and placements.
  • Focus on cross-channel promotion, allowing businesses to reach potential customers across different ad formats.

Replacement of Smart Shopping Campaigns

In September 2022, all Smart Shopping campaigns were automatically upgraded to Performance Max. Advertisers who had not made the transition manually were forcibly migrated, leaving them with little choice but to adapt to the new system.

Why Some Advertisers Feel Scammed by Performance Max

google performance max

1. Over-Promising, Under-Delivering

Google promotes Performance Max as a breakthrough in automation and optimization, but many advertisers find the results inconsistent:

  • While impressions, clicks, and leads may increase, the quality of conversions doesn’t always improve.
  • Many businesses see higher ad spend with lower returns, especially if they cannot track lead quality effectively.

2. Lack of Transparency in Ad Placements & Budget Allocation

  • Ads are distributed across multiple networks, but Google does not provide a detailed breakdown of where the budget is being spent.
  • A significant portion often goes toward low-performing placements (such as Display and YouTube ads), which may have lower engagement than Search ads.

3. Limited Advertiser Control

  • In traditional Search and Display campaigns, advertisers can control:
    • Bidding strategies
    • Audience targeting
    • Ad placements
  • Performance Max removes these options, leaving Google’s AI in charge.
  • This is problematic for businesses that know their audience better than Google’s algorithm does.

4. Google’s Financial Incentives

Many critics argue that Performance Max is designed to benefit Google more than advertisers:

  • Ad budgets are funneled into underutilized Google platforms like Discover and YouTube—increasing Google’s overall ad revenue.
  • Since CPMs (cost per thousand impressions) are higher on these platforms, advertisers often end up paying more for less qualified traffic.

5. Misleading Conversion Data

  • Google reports on conversion numbers, but it doesn’t differentiate between high-value conversions (such as sales) and low-value ones (such as accidental form fills).
  • Since Performance Max uses data-driven attribution, advertisers cannot see the specific path a user took before converting, making ROI evaluation difficult.

6. Google Ads Support’s Aggressive Push for PMax

  • Many advertisers report feeling pressured by Google Ads representatives to switch all campaigns to Performance Max, even when existing campaigns perform well.
  • Some advertisers claim Google reps made changes to their campaigns without permission, forcing them into Performance Max.

7. Poor Targeting & Generic Messaging

  • Google’s AI makes broad targeting decisions, which often results in wasted ad spend on:
    • Irrelevant audiences
    • Users outside the intended location
    • Low-intent users who won’t convert
  • PMax campaigns generalize ad messaging, making them less effective for niche businesses that rely on personalized messaging.

8. Not Ideal for Service-Based Businesses

  • E-commerce businesses benefit more from Performance Max because conversions are tied directly to sales.
  • Service businesses, however, rely on calls, forms, and emails, which Google’s AI doesn’t optimize well for.
  • Lead quality tends to suffer, and advertisers have little control over filtering out bad leads.

Why Google Is Heavily Pushing Performance Max

Google’s aggressive push for Performance Max aligns with its larger goal of dominating the ad landscape through automation and AI-driven campaigns. Here’s why Google is so invested:

1. Maximizing Ad Inventory

  • Some of Google’s platforms, like Discover and YouTube, are underutilized compared to Search.
  • By forcing advertisers into Performance Max, Google ensures ad spend flows into all its platforms, boosting its overall revenue.

2. Data Collection & AI Development

  • By consolidating all campaigns into Performance Max, Google gathers more comprehensive data on user behavior.
  • This helps Google refine its AI algorithms while keeping advertisers dependent on its automation.

3. Selling “Easy Automation”

  • Performance Max is marketed as a solution for businesses that lack advertising expertise.
  • While this benefits small businesses, larger or more sophisticated advertisers lose strategic control.

4. Adapting to Privacy Restrictions

  • With cookie deprecation and iOS privacy updates making it harder to track users, Google is moving toward AI-driven predictions.
  • Performance Max allows Google to replace third-party tracking with machine learning models that guess user intent.

The Downsides of Full Automation

While automation can increase efficiency, it also comes with serious drawbacks:

1. Expertise Becomes Less Valuable

  • Skilled advertisers who used to manually optimize campaigns now have fewer levers to pull.
  • This limits their ability to refine targeting, reduce waste, and improve ROI.

2. Wasted Spend on Broad Targeting

  • AI “explores“ new audiences, often leading to ads being shown to irrelevant users.
  • Businesses targeting local customers might see ads being delivered internationally.

3. Over-Reliance on AI

  • AI is not perfect—it misinterprets data, leading to poor targeting decisions.
  • Example: A luxury brand’s ads might be shown to bargain shoppers, diluting the brand’s perception.

4. Difficulty Comparing Performance Across Channels

  • Since Performance Max aggregates all channels together, advertisers cannot isolate the success of:
    • YouTube vs. Search
    • Display vs. Shopping
  • This makes budget allocation difficult, as businesses cannot identify which platform is actually driving the best results.

How to Navigate Performance Max Without Losing Control

google performance max

If you’re feeling pressured to switch to Performance Max, here are strategies to test it wisely:

1. Start Small

  • Run a test campaign with a limited budget before committing fully.
  • Compare results with your existing Search/Display campaigns.

2. Use Audience Signals

  • Upload customer lists, site visitors, or demographics to guide the AI’s targeting.
  • While Google doesn’t allow full targeting control, these signals help steer the algorithm.

3. Define High-Value Conversions

  • Instead of optimizing for generic conversions (like clicks or form fills), focus on actual revenue-driving actions.

4. Audit Conversion Quality

  • Regularly analyze lead quality and track post-conversion behavior to ensure Performance Max isn’t wasting ad spend.

5. Push Back Against Google Reps

  • If a Google Ads rep pressure you to migrate, ask for data proving its success in your industry.
  • Request case studies before making changes.

6. Use a Hybrid Approach

  • Keep your high-performing Search or Display campaigns while testing Performance Max separately.
  • Compare which strategy yields better results.

Final Thoughts

While Performance Max isn’t inherently a scam, Google’s aggressive push prioritizes its own revenue growth over advertiser success. Businesses must test carefully, analyze results, and push back when necessary to avoid wasted ad spend.

If you need help setting up a Performance Max strategy, Search Engine Projects will guide you through optimizing campaigns under Google’s evolving framework. Search Engine Projects is your digital marketing partner. A top choice for businesses seeking a full-service experience, in Google Ads Management and drive value to our clients.