How to Set Up and Optimise Performance Max Campaigns for 2025

In this guide, we’ll walk you through the step-by-step process to set up your Performance Max campaigns in Google Ads. This guide covers the fundamentals of setting up Performance Max campaigns, offers strategic insights on the optimal time to launch them, and highlights key optimization techniques to make sure you’re getting the best return on investment.

Why Performance Max is a Secondary Campaign

Before we dive into the setup, it’s essential to understand how Performance Max campaigns fit into your broader Google Ads strategy. I consider Performance Max to be a secondary campaign. Here’s why:

• Performance Max campaigns work best as an extension to existing Search or Shopping campaigns, particularly in e-commerce.
• These campaigns utilize AI to drive additional conversions, but they rely heavily on existing conversion data.
• Without a robust baseline of conversion data, Google doesn’t have enough information to accurately target the best prospects for your business.

Pro Tip: To maximize effectiveness, don’t start a Performance Max campaign until you have at least three months of data and an average of 30 conversions per month.

 👉Get Google Ads Ready for 2025: How to Set Up Your Search Campaigns Step-by-Step

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

1. Prepare Your Assets and Research
   Ensure you have keyword research, ad copy, images, and YouTube links ready. For images, remember to have both landscape and square formats prepared in the correct dimensions.

2. Confirm Your Shopping Feed (For E-commerce)
   If you’re in e-commerce, make sure your Shopping feed is correctly linked in Google Ads. This connection is essential for Performance Max campaigns targeting specific products.

3. Create a New Campaign
   In Google Ads, select New Campaign and choose Performance Max. Remember, this campaign type uses smart bidding strategies, either maximizing conversion value or conversions.

4. Set Conversion Goals and Bidding

   • For lead generation or service-based businesses, select the Leads objective.
   • For e-commerce, select Sales to better align with product conversions.
   • Avoid setting a Target CPA or ROAS until you’ve established performance stability over time.

5. Location and Targeting
   Choose your geographic targeting carefully, especially if your business caters to specific regions or countries. This can be especially impactful for local businesses or regional e-commerce stores.

6. Asset Groups and Ad Copy
   Create descriptive, organized asset groups to keep track of your ad variations and their performance. Each asset group should have clear, relevant ad copy and images that match the interests of your target audience.

7. Audience Signals
   While Performance Max campaigns primarily rely on Google’s AI to expand your reach, adding audience signals helps guide Google towards ideal prospects. Start with at least 15 relevant audience signals to increase targeting accuracy.

8. Set Budget and Publish
   Google will suggest a budget, but it’s usually best to start with your own estimate based on your Google Ads budget strategy. After configuring all settings, you’re ready to publish.

Optimization Tips for Performance Max Campaigns

Once you’ve launched your Performance Max campaign, regular optimizations will help you refine and maximize your results.

1. Refine Listing Groups (For E-commerce)
   If you have an e-commerce brand, use Listing Groups to refine specific product categories. This can help target different product types within individual asset groups.

2. Exclude Branded Keywords
   To prevent ads from appearing on irrelevant search terms, use brand exclusions if you have specific keywords associated with your brand that don’t align with your campaign goals.

3. Monitor Automatic Text and Audience Expansion
   Performance Max uses dynamic ad copy and audience expansion by default. If precise messaging is critical to your brand, keep an eye on these elements to maintain control over your campaign narrative.

4. Exclude URLs for Specific Products
   For larger e-commerce stores, consider URL exclusions to ensure each Performance Max campaign is hyper-targeted to specific product categories, like separating women’s and men’s apparel.

5. Adjust Audience Signals Based on Performance Data
   Performance Max campaigns use loose targeting to expand reach. Regularly adjust your audience signals based on performance data from other campaigns to keep Google’s AI on the right track.

Frequently Asked Questions

Why Shouldn’t I Start a Performance Max Campaign Without Prior Conversion Data?

Performance Max campaigns use conversion data to identify patterns in user behavior, enabling more effective targeting. Without this data, the campaign may struggle to deliver quality leads or conversions initially.

What’s the Ideal Conversion Count to Start?

Aim for at least 30 conversions per month before launching a Performance Max campaign. This helps ensure Google’s AI has enough data to make informed targeting decisions.

Should I Use Target CPA or ROAS from the Start?

No. It’s generally better to let Performance Max campaigns run without a Target CPA or ROAS initially. This allows the campaign to collect data and grow without being restricted by tight bid constraints.

Final Thoughts

Performance Max campaigns are a powerful tool for generating incremental conversions in Google Ads, but they’re most effective when paired with well-performing Search or Shopping campaigns. With the right setup, monitoring, and optimizations, you can leverage Performance Max to significantly increase your reach and results.