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The Truth About Performance Max and Demand Gen in 2025 – And How to Use Them Correctly ✅

by Aaron Young
Jan 20, 2025
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In 2025, the Google Recommendations tab & Google Reps will be selling the benefits of Performance Max & Demand Gen campaigns harder than Jordan Belfort was selling penny stocks in the early 1990s.

While I do use both Performance Max & Demand Gen campaigns, I have a very clear framework for when & how I use these campaigns.

Before I get to that framework, let me start with my problem with both campaign types and the current way they are being sold.

Unfortunately, they are being sold as the secret sauce for any Google Ads account, with endless conversions & money flowing into your business.

The truth is that these campaigns will generally see a “honeymoon” period of anywhere between 1–3 months before they get stuck.

Over the past 12 months, I have seen countless Google Ads accounts that are stuck.

Stuck at a certain level of profitability that they just can’t break free from. 😡

 

Why does this happen?

It is because Performance Max & Demand Gen have this in common—they work best at finding new customers for your business.

And this is the best & worst thing about these new types of campaigns.

Yes, they do convert… but they will always (ALWAYS) find the easiest conversions.

So if you let them…

  • Target branded traffic, they will
  • Target people at the bottom of your funnel, they will
  • Target your high-converting search terms, they will


The problem is that they will continue to target these same areas time & time & time again until there are no more conversions left.

 

So, what is the solution?

The solution is to only use Performance Max & Demand Gen campaigns to “bid on new customers,” while you use what I call the “primary campaigns” of:

  • Search
  • Shopping (Search & Shopping if eCom)
  • Display Remarketing


To target & own my:

  • Branded traffic
  • People at the bottom of my funnel
  • High-converting search terms

 

Important Note: To make sure that your Performance Max & Demand Gen campaigns only target new customers, you need to:

  • Remove brand terms
  • For PMAX, set it to “only bid on new customers”
  • Exclude your audiences, like website visitors, customers, etc.

It is what I call the “bottom-up funnel” and has allowed us to produce results for real businesses like below.

NOTE: Goal ROAS was 200% to be profitable. The focus in 2025 was scaling, as they needed to be spending over $3.5K per week to meet quotas.

If you are starting a new campaign, this is easy to incorporate as you can start from the bottom & build up.

But if your account is heavily reliant on Performance Max & Demand Gen campaigns, it takes some time—but you can achieve these same results by initially introducing more focus on your “primary campaigns.”

For me, this is the biggest issue & challenge in 2025, and it is why I am presenting a live masterclass called “Google Ads in 2025” this week in my updated Google Ads Mastery Community to explain how this works in great depth.

If you want to attend the live training or get access to the replay, plus also get direct Google Ads support from me, consider joining my newly updated Google Ads Mastery Community.

This week is the best time to join, as you can get a 20% off lifetime discount.

Join My 10x Google Ads Community With 20% Off! 

Have a great week in Google Ads,

Aaron


  • Monday 20th January, 8pm AEST: Advanced Google Ads Strategies Are A Waste Of Time
  • Wednesday 22nd January, 8pm AEST: How & When I Use Performance Max & Demand Gen Campaigns in 2025

Head Over To My YouTube Channel 👇

Aaron Young | Google Ads | Define Digital Academy

 


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