Performance Max vs Demand Gen: Which Google Ads Campaign Is Right for You?
Mar 24, 2025If you're running Google Ads campaigns, you've likely been hit with suggestions to try Performance Max (PMAX) or Demand Gen in the last week.
But how do you know which campaign type will give you the best results?
In this post, we're comparing Performance Max vs Demand Gen across 5 key areas so you can choose the best strategy for your goals—and avoid wasting ad spend.
1. Campaign Objective: Why Google Created PMAX and Demand Gen
What Is Performance Max?
Performance Max campaigns are designed to maximize conversions and conversion value by using Google’s AI across its entire ad network. That includes:
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Search
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Display
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YouTube
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Discover
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Gmail
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Google Maps
Why it matters: PMAX creates a persona based on your conversion history, audience signals, and demographics, then uses automation to find more users likely to convert.
Caution with PMAX:
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You need strong conversion data already in place—or PMAX can burn your budget fast.
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Add brand exclusions or you’ll get a lot of branded traffic, which may skew performance.
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Lead generation businesses must import offline conversions to avoid spammy leads.
Because of these limitations, PMAX is best used as a secondary campaign, not your main strategy—unless your account is well-established.
What Is Demand Gen?
Demand Gen campaigns focus on creating brand awareness and demand generation through visual placements like:
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YouTube
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Gmail
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Google Discover
Why it matters: Demand Gen is perfect for reaching people in the consideration phase, especially when they're not actively searching.
You should use Demand Gen when:
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You've maxed out Search or Shopping campaigns and face CPC resistance
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You're introducing a new product or brand and need to build awareness
Bottom Line:
Use PMAX if you're optimizing for conversions and already have strong data.
Use Demand Gen if you're building interest, entering a new market, or scaling your visibility.
👉How & When to Use Performance Max & Demand Gen Campaigns in 2025
2. Audience Targeting: How Much Control Do You Have?
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PMAX uses audience signals, but Google ultimately decides where your ads show.
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Demand Gen allows more manual control, including custom segments, lookalike audiences, and in-market categories.
Bottom Line:
If you want more targeting control, Demand Gen is the better option.
If you trust Google's machine learning to find high-intent users, PMAX works well—assuming you have good data.
3. Ad Placements & Inventory: Where Your Ads Show
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PMAX campaigns run across all Google Ads inventory: Search, Display, YouTube, Gmail, Discover, and Maps.
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Demand Gen ads are limited to visual platforms: YouTube, Gmail, Discover. You can even run YouTube Shorts-only campaigns.
Bottom Line:
Choose PMAX for multi-channel reach.
Choose Demand Gen for high-impact visual engagement.
4. Reporting & Control: Transparency in Campaign Performance
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PMAX offers limited reporting. Much of the campaign is automated with minimal visibility into where your budget is going.
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Demand Gen gives you more granular insights—see performance by audience, placement, clicks, and even conversions.
Bottom Line:
If reporting transparency matters to you, Demand Gen gives you far more control and insight.
5. Conversion Tracking & Attribution Differences
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PMAX uses enhanced conversions, leveraging first-party data and AI for improved accuracy.
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Demand Gen includes View-Through Conversions (VTC), which measure if users saw your ad, didn’t click, but later converted.
VTC helps advertisers understand brand impact and ad influence—similar to what you see in Meta (Facebook/Instagram) Ads.
Important: VTC doesn’t replace your conversion setup but it does inform smart bidding in Demand Gen.
Bottom Line:
If you want to measure the full influence of your ads—not just direct clicks—Demand Gen’s VTC tracking is a huge advantage.
Final Thoughts: Performance Max vs Demand Gen — Which Should You Choose?
In many cases, the best strategy is to use both PMAX and Demand Gen campaigns—but only when used strategicallyand at the right stage of your funnel.
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Use PMAX to scale conversions once your data is strong and your funnel is optimized.
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Use Demand Gen to build brand awareness, fill the top of the funnel, and reach users in the discovery phase.