How to Set Up and Optimise Google Performance Max Campaigns (PMax) in 2025

google ads optimisation performance max campaign Nov 11, 2024

If you’re wondering how to set up a Performance Max campaign in Google Ads and actually get results — you’re in the right place. Performance Max (PMax) campaigns can be incredibly powerful when used correctly, but they’re not a one-click solution. Without the right setup and optimisation strategy, you risk wasting ad spend with little to show for it.

In this 2025 guide, we’ll walk you through everything you need to know: how to create a Performance Max campaign from scratch, how to optimise it for conversions, and how to maximise your ad spend using the latest Google Ads best practices. Whether you’re running lead gen or e-commerce campaigns, this setup process will help you get better performance with less guesswork.

Key Takeaways

Don’t launch too early — wait until you have at least 30 conversions/month from existing campaigns.
Use Performance Max as a secondary layer — it’s most effective when paired with strong Search or Shopping campaigns.
Guide the algorithm — upload high-quality creative assets and use audience signals to steer early performance.
Hold off on Target CPA/ROAS — let the campaign learn before adding bid constraints.
Exclude branded traffic — protect brand keywords if they’re already handled in other campaigns.
Track real conversions — define success based on lead quality or actual sales, not fluff metrics.
Split asset groups strategically — use separate groups for different services, audiences, or product types.

What Is a Performance Max Campaign in Google Ads?

A Performance Max campaign - or PMax - is Google’s fully automated campaign type designed to simplify and scale your ad reach across the entire Google ecosystem. Unlike traditional campaign types where you manage placements, bids, and targeting separately, Performance Max uses AI to automatically serve your ads across Google Search, Display, YouTube, Discover, Gmail, and Maps.

Instead of selecting keywords, you provide creative assets, audience signals, and conversion goals. Google then uses machine learning to generate ad combinations, determine placements, and adjust bids in real-time - all in pursuit of your set objective, whether that’s lead generation, sales, or website traffic.

Because of this automation, Performance Max is especially useful for advertisers who already have strong conversion data and are ready to scale their reach. But it also means you’re giving up a level of control - which is why strategy, structure, and timing are key to making it work.

When to Use (and Avoid) Performance Max Campaigns

Performance Max campaigns can be incredibly effective — but only when used in the right context. Treating them as your primary Google Ads campaign, especially for new accounts or businesses without conversion history, is a common mistake.

Here’s when to use them — and when to hold off.

When to Use Performance Max

You already have conversion data: PMax relies on existing signals to optimise. Aim for at least 30 conversions per month before launching.
You want to scale beyond Search: If your Search and Shopping campaigns are already profitable, Performance Max can extend your reach across YouTube, Display, and more.
You have strong creative assets: Since Google builds ads dynamically, the quality and variety of your images, videos, and copy directly affect performance.
You want to test automation: Performance Max works well when you’re ready to let Google’s AI take the lead — with the right guardrails.

When to Avoid Performance Max

You’re starting from scratch: With no historical data, Google has nothing to optimise toward. You’ll risk burning budget on low-quality traffic.
You need tight keyword control: Unlike Search campaigns, you can’t choose exact keywords — only guide performance with audience signals and exclusions.
You lack tracking or conversion accuracy: If you’re not 100% confident in your conversion tracking setup, avoid PMax until that’s resolved. The AI is only as smart as your data.

Think of Performance Max as a way to scale what’s already working — not a magic shortcut to fix underperforming campaigns.

Step-by-Step Guide to Set Up a Performance Max Campaign

Setting up a Performance Max campaign requires more planning than simply ticking boxes. Follow these steps to ensure Google’s automation has the right signals and structure to work with from day one.

1. Prep Before You Build

Gather your assets: Prepare all required images, headlines, descriptions, and YouTube videos. Include square (1:1) and landscape (1.91:1) image formats at high resolution.
Check your conversion tracking: Verify that all key conversion actions (like form submissions, purchases, or calls) are being tracked correctly.
Ensure Shopping feed is ready (if applicable): For eCommerce, make sure your Merchant Center feed is clean, approved, and linked to Google Ads.

2. Create the Campaign

Go to Google Ads > New Campaign
Choose your goal: Sales (for eCommerce) or Leads (for service-based businesses)
Select Performance Max as the campaign type

You’ll notice that Google automatically applies smart bidding here — you can’t use manual CPC.

3. Choose Conversion Goals and Bidding

Use only relevant conversion actions: Click the dropdown to deselect conversions that don’t reflect your real business goals (e.g., page views).
Start with Maximize Conversions or Conversion Value: Avoid adding Target CPA or ROAS until the campaign stabilises (usually 2–4 weeks).
Set your budget: Start with a daily budget based on your average cost per conversion × expected daily conversions.

4. Target Locations and Languages

Define your geo-targeting carefully. Use “Presence: People in or regularly in your targeted locations” to avoid showing ads outside your market.
Set the language to match your ad copy (typically English unless you're targeting other markets).

5. Build Your First Asset Group

An Asset Group is the core creative block of a Performance Max campaign.

Include:

Headlines (short and long)
Descriptions
Business name
Final URL
Images (square and landscape)
Logo
Call-to-action
YouTube video (recommended, not required — but helps a lot with reach)

Use variations that reflect your audience segments or product categories. If you serve different customer types or offer multiple services/products, use separate asset groups.

6. Add Audience Signals (Not Targeting)

Audience signals are not strict targeting — they simply help Google learn faster. Start with at least 3–5 audience suggestions per asset group:

Website visitors
Customer list (if available)
Custom segments based on keywords or interests
In-market audiences related to your service/product

The better your audience signals, the faster PMax can optimise toward high-converting users.

7. URL Expansion and Exclusions

By default, PMax enables Final URL Expansion, which lets Google choose landing pages on your site. Unless you’re confident in your full site’s structure, toggle this off and set specific URLs.

Also:

Add brand exclusions to prevent cannibalising branded search terms.
Use URL exclusions to stop PMax from promoting pages that don’t align with your campaign’s goal.

8. Review and Launch

Before hitting publish:

Double-check conversion goals and bidding strategy
Review your asset previews
Ensure all audience signals are applied correctly
Confirm budget and location settings

Once launched, monitor the campaign but avoid making significant changes in the first 2–3 weeks. Let Google’s algorithm collect enough data before you begin optimising.

Optimisation Techniques for Performance Max Campaigns

Once your campaign is live, the real work begins. Performance Max is not a “set and forget” system — its automation works best when guided with ongoing input. Here’s how to refine and improve your campaign performance over time:

Monitor Asset Group Performance

Google doesn’t provide full asset-level data, but you can still track which asset groups drive conversions. Use this insight to:

Identify top-performing headlines, descriptions, and images
Replace low-performing creatives with new variations every 3–4 weeks
Test separate asset groups for different products or service types

If performance is uneven across asset groups, try splitting them into separate campaigns for better control.

Review and Adjust Audience Signals

While Google will expand targeting beyond your inputs, audience signals still influence early campaign learning. After 2–4 weeks:

Remove signals with poor conversion rates
Add new custom segments based on search terms or converting traffic
Incorporate retargeting segments if enough site traffic is available

This helps Google focus on higher-quality user profiles.

Exclude Unwanted Traffic

One common mistake with PMax campaigns is allowing Google to waste budget on branded queries or irrelevant pages. To tighten up your targeting:

Add brand exclusions (if your Search campaign is already covering your name)
Use URL exclusions to block low-intent product categories or pages not meant for advertising
Exclude Shopping categories (if applicable) from the listing group to avoid showing out-of-stock or low-margin products

Track Real Conversion Quality

PMax can drive low-quality leads if your conversion tracking is too broad. Focus on:

Qualified conversions only (e.g., calls over 60 seconds, forms with complete submissions)
Creating a lead scoring system if you get a high volume of inbound enquiries
Removing fluff goals like time-on-site or page views from your conversion settings

This tells Google’s bidding system what a real conversion looks like.

Refine Bidding Strategy Over Time

After about a month of data:

If conversions are stable and profitable, consider adding a Target CPA or Target ROAS to control spend and scale volume
Set the target based on actual results, not hopes — e.g., if your average CPA is $50, start with a $55–$60 target

Don't introduce a bidding target too early. Let the system learn before applying constraints.

Leverage Listing Groups for Product-Level Optimisation

For eCommerce businesses:

Break products into groups by category or margin level
Use Listing Group exclusions to remove underperforming SKUs
Track sales by product group and consider creating separate campaigns for high-volume product lines

This gives you granular control and helps isolate performance signals.

Run Periodic Campaign Experiments

Since PMax campaigns don’t support ad rotation or split testing by default, consider:

Running separate campaigns with different asset strategies
Testing one audience signal or one creative set at a time
Reviewing results across 30-day periods to allow for proper learning windows

Even in an AI-driven campaign, structured experimentation helps you stay in control.

FAQ

When should I start a Performance Max campaign?

You should only launch a Performance Max campaign once your account has at least three months of stable data and 30+ conversions per month. Without this, Google’s algorithm won’t have enough signals to optimise effectively.

Is Performance Max better than Search or Shopping campaigns?

Not necessarily. Performance Max works best as a complement to existing Search or Shopping campaigns—not a replacement. It’s ideal for scaling once your core campaigns are already performing well.

Should I add a Target CPA or ROAS from the beginning?

No. Let the campaign run without bid constraints at first so it can gather data. Once you have 4–6 weeks of consistent results, you can test adding a target CPA or ROAS.

Can I control where Performance Max ads appear?

Not directly. Performance Max automates placements across Google’s properties. However, you can exclude URLs, add audience signals, and use brand exclusions to guide performance and improve control.

What are audience signals in Performance Max?

Audience signals are optional inputs that help Google’s AI learn faster. They include custom audiences, remarketing lists, and demographic targets—useful for guiding early performance and improving relevance.