If you’re managing Google Ads for your business, you probably know how crucial Performance Max campaigns can be in reaching customers across various platforms. Recently, Google announced a significant update to Performance Max (PMax) campaigns, particularly for businesses running both PMax and standard Shopping campaigns. The update, which started rolling out quietly in October 2024, may impact how your products are prioritized and displayed across Google Ads.
This blog breaks down the update, explains what changes you should be aware of, and offers some essential tips on adjusting your campaigns to maximize effectiveness.
What’s the Big Change with Performance Max and Standard Shopping Campaigns?
Previously, if you were running both PMax and standard Shopping campaigns for the same product, Performance Max would automatically be prioritized. This meant that PMax would win the ad auction over the standard Shopping campaign every time, ensuring that your PMax campaign reached your target audience first.
With the new update, Google is changing this prioritization. Now, if you’re running overlapping campaigns, your PMax campaign will no longer automatically win over standard Shopping campaigns. Instead, Google will determine which campaign shows your ads based on Ad Rank.
Ad Rank: The New Decider in Campaign Priority
So, what exactly does it mean for Ad Rank to decide the winner? Let’s take a closer look:
Bidding Strategy Matters More Than Ever:
Ad Rank is Google’s way of determining which ad to display based on factors like bid amount, ad quality, and relevance. With this new change, if your standard Shopping campaign has a higher bid or more aggressive bidding strategy than your PMax campaign, it could actually take priority and show your ads more frequently. This is a departure from the previous method, where PMax was always shown first regardless of its bid relative to standard Shopping.Competition Within Your Own Campaigns:
This new system puts PMax and standard Shopping campaigns on equal footing. In effect, both campaigns will now be vying for visibility based on their Ad Rank. This competition means that your standard Shopping campaign could end up winning the auction and getting more clicks and impressions than your PMax campaign if it’s optimized with a higher bid and more relevant ad components.
What Does This Mean for Your Campaign Strategy?
With Ad Rank now playing a central role in which campaign displays your ads, it’s essential to rethink your approach to overlapping campaigns. Here are some tips to help you optimize your strategy:
Evaluate Bidding Strategies Across Campaigns:
Take a close look at the bids for your PMax and standard Shopping campaigns. If your standard Shopping campaigns are set with lower bids than your PMax, you may want to consider increasing those bids, especially if you’re noticing that the standard Shopping campaign is not showing up as often as expected. By adjusting your bid strategy, you can increase the likelihood of your standard Shopping campaign winning the ad auction when it’s relevant.Optimize Ad Quality for Higher Ad Rank:
Ad Rank is not solely dependent on your bid; it also factors in the quality of your ad and its relevance to the user’s search. Focus on creating high-quality ad creatives that are relevant to your target audience. This can help your campaign gain an edge in the Ad Rank system, especially if the bid competition between PMax and standard Shopping is close.- Monitor Campaign Performance Carefully:
Since the changes started rolling out gradually, keep a close eye on your performance metrics. Google may not notify all advertisers directly about this update, so monitoring your impressions, clicks, and conversion rates can help you spot any changes in campaign performance that might be tied to the new prioritization rules. If you notice your standard Shopping campaign outperforming PMax, consider allocating more budget to that campaign if it’s providing better results.
Pros and Cons of the New Performance Max Prioritization
This update from Google could work in your favor or against you, depending on your campaign setup. Here’s a quick rundown of potential pros and cons:
Pros:
- Greater Flexibility: With Ad Rank as the deciding factor, advertisers have more control over which campaign gets prioritized based on their bidding and quality.
- More Control for Standard Shopping Campaigns: If you have a highly optimized standard Shopping campaign, it now has a better chance to show over PMax, potentially leading to increased visibility for specific products.
Cons:
- Higher Competition: The update effectively makes PMax and standard Shopping campaigns competitors. To get the most out of both, you may need to closely manage each campaign’s bid strategy, ad quality, and budget allocation.
- Possible Increased Costs: Since Ad Rank depends on bid amounts, you might see higher costs if you engage in aggressive bidding to keep standard Shopping competitive with PMax.
Final Thoughts: Navigating the New Performance Max Update
While this change may seem like a curveball, it’s also an opportunity to fine-tune your ad strategy. By optimizing your bid strategies and ad quality in standard Shopping campaigns, you can take advantage of the updated Ad Rank prioritization and potentially get more value from both types of campaigns. As with any Google Ads update, it’s essential to stay adaptable and monitor your campaign performance closely to ensure you’re maximizing results.
Need Help Optimizing Your Performance Max Campaigns?
This latest update may feel a bit challenging, but you don’t have to navigate it alone. Partnering with a Performance Max expert can help you fine-tune your campaigns for maximum impact and ensure you’re making the most of the new prioritization rules. Get expert advice, tailored strategies, and ongoing support to drive better results for your business.
Click here to connect with a PMax expert and start optimizing today!