Using Performance Max & Demand Gen in the same account
Mar 26, 2025
Are you running both Performance Max and Demand Gen campaigns in the same Google Ads account?
If so, there’s one thing you need to get right: your campaign structure.
These campaign types can work brilliantly together—but only if you avoid the common mistakes that cause budget waste, targeting conflicts, and poor performance.
In this guide, you’ll learn exactly how to use Performance Max and Demand Gen campaigns together effectively—without overlapping audiences or sabotaging your results.
Why Performance Max and Demand Gen Can Clash (If You’re Not Careful)
One of the most common issues advertisers face when running both campaign types is internal competition. That’s why I live by this Golden Rule for Google Ads:
Never target the same keywords or users with the same ads across multiple campaigns in the same Google Ads account.
When Performance Max and Demand Gen are set up incorrectly, you end up:
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Competing against yourself
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Targeting the same users twice
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Wasting budget on the wrong goals
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Confusing Google’s AI optimization
But when structured correctly, these campaigns can complement each other and drive serious results.
Can You Run Performance Max and Demand Gen in the Same Google Ads Account?
Yes—you can, and you should.
But only if each campaign has a clear, separate purpose in your Google Ads funnel.
Here’s the difference:
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Performance Max (PMax) focuses on converting high-intent users already close to purchase
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Demand Gen builds brand awareness and warms up new audiences
If you're wondering how to structure these campaigns without overlap, you're in the right place.
👉How & When to Use Performance Max & Demand Gen Campaigns in 2025
How to Structure Performance Max and Demand Gen the Right Way
To run both campaigns successfully, follow these four essential Google Ads settings. These prevent overlap, protect your budget, and optimize each campaign’s performance.
1. Turn OFF Optimized Targeting in Demand Gen
Problem: By default, Google enables Optimized Targeting in Demand Gen, which expands your audience beyond your selected signals.
Why it’s bad: This causes your Demand Gen campaign to overlap with Performance Max, diluting your targeting strategy.
How to fix it:
Go into your Demand Gen settings and disable Optimized Targeting.
This ensures your ads are only shown to the audience signals you’ve carefully chosen.
2. Set Performance Max to Target New Customers Only and Exclude Brand Terms
Problem: Performance Max will often scoop up easy conversions from people searching for your brand—resulting in misleading performance data.
How to fix it:
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Enable “New Customers Only” bidding in PMax settings
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Exclude brand keywords to stop PMax from serving ads to users already searching for your brand
This helps you focus Performance Max on acquiring new customers—its true strength.
3. Use Campaign-Specific Conversion Goals
One of the most overlooked settings in Google Ads is goal segmentation.
Problem: If both PMax and Demand Gen campaigns are tracking the same soft goals (like page views or low-quality leads), Google’s AI will optimize incorrectly.
How to fix it:
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For eCommerce: Use conversion values tied to purchases
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For Lead Gen: Set up offline conversion tracking using enhanced conversions or CRM integrations
You can use tools like:
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Google’s enhanced conversions
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CRM integrations such as Salesforce, HubSpot, or Zoho
This ensures your campaigns are learning from real outcomes, not just surface-level interactions.
4. Use Unique Ad Creatives for Each Campaign Type
Problem: Using the same ad creatives in both campaigns confuses the algorithm and muddles your messaging.
How to fix it:
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Demand Gen creatives should focus on awareness and emotional engagement
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Performance Max creatives should be focused on conversion-driven messaging
Create tailored assets for each audience type and funnel stage to give Google’s machine learning the signals it needs to optimize correctly.
Recap: What’s the Role of Each Campaign?
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Performance Max: Converts high-intent users using your current conversion data
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Demand Gen: Builds brand awareness and nurtures colder audiences
When you set them up with clear goals, distinct audiences, and unique creatives, they can work together beautifully.
But when you don’t? You’ll burn through your budget, confuse Google’s algorithm, and miss out on the results you’re aiming for.