Tomahawk Blog

Prepare for Performance Max

byEllis Jansen

Google has launched a new campaign format: Performance Max. In short, an automation upgrade of Google Smart Shopping. Intended to maximize sales and leads. What does this mean for e-commerce businesses?

Control over the funnel

With Performance Max, Google is introducing new automation technologies. These make it possible to roll out one campaign on all channels in which the target group is active. So in addition to Gmail, also on YouTube, Maps, Search, Discovery and Display. This gives e-commerce companies more control over the entire marketing funnel.

Sharper budgets

In addition to reaching a broad target audience, it is now possible to set budgets more tightly. This reduces the cost per click(CPC). Based on the input, Performance Max automatically generates different campaign types, tailored to all channels individually.

As in the following example:

Figures

According to figures from Google, 54% of consumers used 5 or more channels to make purchases during the holiday season. Preliminary results are promising: based on initial testing, Google sees an "average 12% increase in conversion value for the same or better return on ad spend (ROAS).

Prepare

What does this mean for crossborder e-commerce businesses? And what can you do to make the transition as smooth as possible?

A few tips from our senior SEA marketing consultant Monika:

Ensure extremely tight conversion tracking and the right attribution model. With the introduction of Performance Max, it has become even more important to have all the data in order. A smart algorithm only really works when the front end is right.
Be ready for a shift in advertising. Images and videos will become even more important. Google Machine Learning uses this information to offer the most relevant combination to the right audience, on the right channel. Very important, then, to add good product images and videos to an ad. Otherwise, Google will use automatically generated content.
If we look at crossborder marketing in general, it looks like Performance Max is mostly changing the visual aspect of campaigns. And that offers opportunities: after all, we are all stimulated by images. Anywhere in the world.

What happens to ongoing campaigns?

Existing Smart Shopping campaigns will be converted to Performance Max campaigns during 2022. Very wise, then, to revisit those and test out the new features.

Want to know more about Performance Max?