Performance Max vs Search Campaigns: Which Should You Use?

If you have been managing Google Ads accounts recently, you have probably noticed Google pushing Performance Max campaigns pretty hard. Every time you log in, there seems to be another prompt suggesting you switch.

But is Performance Max actually better than traditional Search campaigns? The answer, like most things in marketing, is "it depends." Let us break down what each campaign type does well and when you should use one over the other.

What is Performance Max?

Performance Max is Google's newest campaign type. It launched in late 2021 and has been getting more features and more Google attention ever since.

The basic idea is that you give Google your conversion goals, some creative assets like images and ad copy, and a budget. Then Google's machine learning figures out where to show your ads across all of Google's properties. That includes Search, Display, YouTube, Gmail, Discover, and Maps.

You do not pick keywords. You do not choose which placements to target. Google handles all of that automatically based on what the algorithm learns about your audience and what drives conversions.

What are Search Campaigns?

Search campaigns are the original Google Ads format. They have been around since the platform launched over twenty years ago.

With Search campaigns, you choose specific keywords you want to target. When someone searches for one of those keywords, your text ad can appear in the search results. You have granular control over which searches trigger your ads, what your ads say, and how much you bid.

Search campaigns only show ads on Google Search and search partner sites. They do not run on YouTube, Display, or other Google properties.

The Key Differences

Feature Search Campaigns Performance Max
Control High. You pick keywords and placements. Low. Google decides where ads show.
Transparency High. You see exactly which searches triggered ads. Limited. Reporting shows less detail.
Reach Search only All Google channels
Setup Effort More work upfront for keyword research Easier to launch with basic assets
Creative Needs Text ads only Images, videos, and text all recommended

When Search Campaigns Work Better

Search campaigns tend to outperform Performance Max in certain situations.

When you need precise control. If you are in a competitive industry where certain keywords are profitable and others are not, Search campaigns let you focus your budget exactly where you want it. You can bid aggressively on your best keywords and exclude everything else.

When transparency matters. Search campaigns show you exactly which searches triggered your ads and how each one performed. Performance Max hides much of this data. If you need to report on exactly where your money went or need to understand user intent in detail, Search is better.

When your budget is limited. Performance Max needs data to learn. If you do not have enough budget to generate significant conversions across all channels, the algorithm may struggle. Search campaigns can work well even with smaller budgets because you are focusing on high intent traffic.

For B2B lead generation. B2B sales cycles are often long and complex. Leads that come from someone actively searching for a solution tend to be higher quality than leads from display or video ads. Search campaigns capture that intent directly.

When Performance Max Works Better

Performance Max has its own strengths that make it the better choice in some cases.

For ecommerce with large product catalogs. If you sell hundreds or thousands of products, managing individual Search campaigns for all of them is nearly impossible. Performance Max can dynamically create ads for your entire product feed and figure out what works.

When you want maximum reach. Performance Max shows your ads everywhere Google has inventory. If brand awareness is part of your goal, this broader reach can be valuable.

When you have great creative assets. Performance Max can use images, videos, and other creative formats that Search campaigns cannot. If you have strong visual content, Performance Max puts it to work across YouTube and Display.

When you trust automation. Some advertisers prefer a more hands off approach. If you do not have time for detailed keyword management and are comfortable letting Google optimize, Performance Max simplifies things.

Can You Use Both?

Yes, and many advertisers do. Google says Performance Max and Search campaigns complement each other.

The way it works is that Search campaigns take priority for exact and phrase match keywords. Performance Max fills in the gaps by capturing additional traffic that your Search campaigns do not cover. This includes brand terms if you are not targeting them in Search, as well as traffic on Display, YouTube, and other channels.

One approach we often recommend is running focused Search campaigns for your most important keywords and using Performance Max to expand reach beyond that core. This gives you control where it matters most while still taking advantage of Google's automation for incremental growth.

Watch out for: Performance Max can cannibalize your Search traffic if not set up carefully. Make sure your Search campaigns have enough budget and are not being outcompeted by your own Performance Max campaigns.

The Transparency Problem

The biggest issue with Performance Max is how little information Google provides. You cannot see exactly which searches triggered your ads. You cannot see which YouTube videos or websites your display ads appeared on. You get aggregate data and that is about it.

This makes troubleshooting difficult. If performance drops, it is hard to figure out why. If you want to exclude certain placements or queries, you have limited options.

Google has been slowly adding more reporting features to Performance Max, but it still lags far behind Search campaigns in transparency. For advertisers who want to understand exactly what is happening with their money, this is a real drawback.

Our Recommendation

There is no universal right answer. The best approach depends on your business, your goals, and how much time you want to spend managing campaigns.

For most of our clients, we start with Search campaigns focused on high intent keywords. Once those are performing well and we have solid conversion data, we test Performance Max as a complement. This gives us a foundation of control and transparency while still exploring what automation can add.

We do not recommend jumping straight into Performance Max without any Search campaigns, especially for new advertisers. You give up too much control and insight before you understand what actually works for your business.

The bottom line is that both campaign types have their place. The key is matching the right tool to your specific situation rather than assuming one is always better than the other.

Not Sure Which Approach Is Right for You?

We can analyze your business and recommend a campaign structure that makes sense for your goals.

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