Performance Max vs. Shopping
Recently, Google made a big announcement just ahead of peak: Performance Max (pMax) campaigns will no longer take priority over Standard Shopping if both run together. So, if your agency’s not talking about it or just keeps pushing pMax, it might be time to reevaluate!
Why does this matter?
Standard Shopping means every dollar you spend is laser-focused on Shopping ads. No mysterious display, video, or search ads nibbling away at your budget without your say. For most eCommerce, at least 80% of your budget should be on Shopping – Capturing Search demand for your products.
pMax campaigns were originally set up to simplify things (and force you to spend on non-performance channels…) by creating this blackbox cross-channel campaign type, but this isn’t always best for you. pMax definitely has its place for some advertisers but when you understand Google Ads like we do, you can get much better results by managing each channel individually.
So, what should you do now?
Check your pMax spend: Look at the product-level costs in pMax and see how they stack up against the total. If less than 70-80% is going to Shopping, Google is sneaking into more non-Shopping channels than you’d like.
Watch CPCs & CTRs: If you’re seeing super-low CPCs (<$1) and high CTRs (2%+), odds are more spend is being allocated outside Shopping.
Take control: As we're just heading into peak, you want approach this change with caution. Try running Shopping along side pMax with a slightly lower ROAS to avail of higher ad ranking. Shift more budget towards shopping as you see performance improvements.
Most importantly: work with a team that knows how Google Ads truly works. At Glassbox, with over 20 years of insider knowledge, we focus on aligning your spend with your performance goals, not just what’s easy to manage.
