Google's Performance Max vs Smart Shopping: What you need to know

As of the end of 2022, Performance Max (or PMax) campaigns have gradually been replacing all Google Smart Shopping and Local campaigns, as they are designed to offer more dynamic advertisement.

PMax campaigns serve ads across the entire Google Network, leveraging channels including Search, Maps, Display, YouTube, Gmail, and Discovery. Advertisers can also employ many different asset groups for their advertisements, such as pictures, text, logos and videos. 

Despite PMax now being available across all accounts as a substitute for Smart Shopping ads, many users still struggle to understand the differences and benefits. That’s exactly what the TG experts are exploring today 👇

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The Basics: Performance Max and Smart Shopping Campaigns

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Before we dive into the comparison, let's briefly understand what Performance Max and Smart Shopping campaigns are.

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Performance Max Campaigns

Performance Max campaigns are Google's latest offering designed to simplify and streamline the advertising process. These campaigns leverage machine learning and automation to optimise your ads across multiple Google networks, including Search, Display, YouTube, and Discover. Performance Max campaigns allow you to reach a wide audience and achieve maximum performance with minimal effort.

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Smart Shopping Campaigns

Smart Shopping campaigns, on the other hand, only ran on Search, 3P Display, and O&O Display, including Gmail and YouTube. Budgets in Smart Shopping Campaigns were also frequently isolated and siloed by network or objective.

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PMax vs Smart Shopping: Benefits and differences

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Targeting Capabilities

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Both Performance Max and Smart Shopping campaigns offer sophisticated targeting options to help you reach your desired audience. Here's a breakdown of their targeting capabilities.

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Performance Max targeting

Performance Max campaigns provide advanced audience targeting options. You can define your target audience based on factors such as demographics, interests, and behaviours. Additionally, you can leverage Google's audience insights to refine your targeting and ensure your ads are delivered to the most relevant users. Location targeting is also available, allowing you to focus on specific geographic areas.

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Smart Shopping targeting

Smart Shopping campaigns used automated targeting, primarily based on user intent and product relevance, users had significantly less control over specific audience targeting parameters.

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Ad formats and creative assets

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Another crucial aspect to consider is the variety of ad formats and creative assets supported by each campaign type.

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Performance Max ad formats

Performance Max campaigns support various ad formats, including responsive display ads and dynamic search ads. Responsive display ads automatically adjust their size and appearance to fit the available ad space, while dynamic search ads dynamically generate headlines and landing pages based on the user's search query. These flexible ad formats help ensure your ads are visually appealing and relevant to your target audience.

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Smart Shopping ad formats

Smart Shopping campaigns primarily utilised automated product ads. These ads displayed product images, titles, prices, and store names to potential customers. 

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Optimisation and Machine Learning

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Both campaign types heavily rely on machine learning and automation to optimise performance. Here's how they differ in terms of optimisation techniques.

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Performance Max optimisation

Performance Max campaigns leverage Google's powerful machine learning algorithms to automatically optimise your ads across different networks. The campaign uses real-time data and learns from user interactions to improve targeting, bidding, and ad delivery. This automation eliminates the need for manual adjustments and allows you to focus on your overall marketing strategy while Google handles the optimisation process.

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Smart Shopping optimisation

Smart Shopping campaigns also harnessed the power of machine learning for optimisation. The campaign automatically adjusted bids and ad placements to maximise conversions and deliver the best results. The machine learning algorithms analyse various signals, such as user behaviour, device type, time of day, and more, to determine the most effective way to showcase your products and drive sales.

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Reporting and insights

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Understanding the performance of your campaigns is crucial for making data-driven decisions. Let's explore the reporting and insights available for each campaign type.

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Performance Max reporting

Though Google is gradually adding new reporting features to Performance Max, some marketers find that the all-in-one approach to campaign management has hampered their ability to effectively understand and act upon reporting data. PMax is yet to provide specific metrics on different asset performance, instead simply labelling them ‘low’, ‘good’, or ‘best’; not ideal for diligent digital marketers.

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Smart Shopping reporting

In Smart Shopping campaigns you could track metrics such as clicks, conversions, conversion value, and return on ad spend (ROAS). Additionally, you could access product-level insights, which provide valuable information on the performance of individual products within your campaign. 

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Final thoughts

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PMax campaigns have emerged as a powerful replacement for Google Smart Shopping campaigns, offering advertisers a more dynamic and comprehensive advertising solution. As advertisers continue to navigate the evolving landscape of digital advertising, understanding the differences and benefits between Performance Max and Smart Shopping campaigns is crucial. 

With its broader reach, advanced targeting capabilities and diverse ad formats, Performance Max campaigns provide a robust solution for advertisers looking to maximise their advertising performance and effectively engage with their target audience across multiple Google networks.