Google Ads are one of the most popular methods of marketing a website or product. There are many different ways to approach Google Ads depending on your goals, with Google recently adding PMAX campaigns into the mix.
At Squarebird, we believe in staying at the cutting edge of marketing tactics to help you get the most bang for your buck. In this article, we’ll discuss PMAX campaigns – what they are, how they work with PPC and your overall marketing strategy, and the pros and cons. By the end, you should have a firm idea of whether this is the right direction for you, and what steps to take next.
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What is a PMAX campaign?
In 2021, Google introduced Performance Max (PMAX) campaigns as a way for performance-based marketers to access all their ad channels from a single source, working alongside other marketing efforts to achieve specified goals.
PMAX campaigns use Smart Bidding to help optimise your PPC expenditure. It uses Google AI across a variety of campaign features, including:
- Bidding
- Budget optimisation
- Audience analytics and targeting
- Creative outputs
- Attribution
Effectively, this means taking your goals and using AI to produce ads designed to meet them.
All of these features are based around your specified objectives and can utilise any provided data feeds. Although PMAX has been met with controversial opinions in the past, recent innovations in AI could make PMAX campaigns a lucrative option for your business.
What is PPC?
PPC stands for Pay Per Click. It’s used by advertising platforms like Google Ads, taking funds out of a pre-allocated pool whenever a user clicks on an advert. This can help keep costs down, as while it doesn’t guarantee a complete conversion, it does mean you’re usually only paying for user engagement from those interested in your offering.
In contrast to advertising that charges a flat fee or is based on impressions – the number of people that see the ad – PPC can be greatly cost-efficient depending on your overall marketing strategy.
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How to set up a PMAX campaign for PPC
A PMAX campaign provides AI support for your PPC across a variety of Google-owned touchpoints. To get started, Google has a handy guide which we’ve made even handier by summarising below:
- Provide information about your business, including things like name, services, and Google Business Profile.
- Link your Google accounts. These can be unlinked at any time, and include: YouTube, display, search, discover, Gmail, Google Maps, mobile, and Merchant Centre.
- Create your campaign, choosing the goal, specifying the themes, and providing any additional information.
- Supply text, visuals, and assets to create your ads; Google will test different combinations and provide feedback on ad strength.
- Create a bid strategy which assigns how money should be spent and what the metrics should be that determine success.
- Continually review and update your PMAX campaign so it stays relevant with your goals, resources, and available assets.
As you can see, setting up a PMAX campaign is no small process. You’ll need all the assets and resources in place for the AI to utilise, as well as a well-defined outline for your goals, bidding strategy, and creative direction. Continual review and provision of new information and direction is also required to make sure you don’t fall behind.
While it requires a lot of work, once it gets going, a PMAX campaign can be a valuable asset. Although it’s not the be-and-end-all of digital advertising, it can be a useful tool when given the right circumstances.
When should you use a PMAX campaign?
As we’ve alluded to, PMAX campaigns aren’t always your best bet. Here we’ll outline the pros and cons so you can make an informed decision when it comes to your own marketing and ad campaign strategy.
The pros
Google understands that PMAX campaigns aren’t the right fit for everyone, and offers a list of times when PMAX may be the best option. Here’s an outline of those, as well as more general benefits of this campaign type:
- A powerful solution when you already have specific goals in mind.
- Helps you maximise the performance of campaigns.
- Delivers ads across multiple touchpoints from a single campaign interface.
- Works in tandem with your keyword-based search campaigns.
- Provides an easier point of entry for new users.
- Puts full emphasis on strategic performance.
- Can provide great results when used in the right situation with the right goals and monitoring.
A case study of company MoneyMe showed a 22% increase in conversions, $800,000+ increase in revenue, and 20% reduction in CPA (Cost Per Action). While this is an isolated case, it does show the extreme power that PMAX can have in the right scenario.
The cons
Alongside the benefits comes a number of considerations that could mean a PMAX campaign isn’t right for your goals. Here are common cons you might encounter:
- Clear goals are required, and setting skewed goals can massively alter your results.
- There is little in terms of strategy to differentiate you from competitors using the same campaigns.
- You have less control over the output of a Smart Campaign.
- There is still a large need for user input, so it can never be fully autonomous either.
- Some users find it hard to get insights for campaigns and their components.
Hatch your next marketing strategy with Squarebird
Whether or not you think a PMAX strategy is the one for you, the first step is to figure out the fundamentals and decide on the best first step. Rigorous auditing, reliable reports, and actionable objectives are the backbone of your PPC and SEO efforts, and that’s exactly what you’ll get at Squarebird.
Our in-house marketing and PPC teams are here to provide a unique strategy for your business, helping you to find the right marketing route to convert more customers. To find out more, get in touch today.
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