Month 1-3: Performance Max Campaign Optimisations

In this blog post, I’ll dive into the optimization tactics we employ at my Google Ads agency for brand-new Performance Max campaigns during the critical first three months. Having utilized Performance Max campaigns since their inception about two and a half years ago, I’ll share our strategies to enhance campaign performance.

While a lot of my content focuses on the initial account build and how to set up a high-performing Performance Max campaign, this video specifically addresses what you should do from month one to month three after your campaign goes live.

Overview of the Optimization Process

To facilitate your understanding, there will be a link to a visual representation of our approach. Additionally, I’ll provide a detailed breakdown of what we do each month. Let’s summarize the three-month process:

1. Month 1: Learning Phase
2. Month 2: Testing Phase
3. Month 3: Scaling Phase

Month 1: The Learning Phase

The first month is all about gathering data, as Performance Max campaigns are unique and require substantial data to perform effectively. They are particularly sensitive to changes, making the learning phase crucial for optimizing your bidding strategy.

Key Tactics:

• Add a Performance Max Script: This allows us to gather additional data beyond what’s available on the Google Ads platform. It helps analyze how much spending is directed toward different types of assets—shopping, video, search, etc. This script aids in decision-making.

• Start Without a Target ROAS: In this phase, we avoid setting a target Return on Ad Spend (ROAS) to ensure maximum data collection. Typically, I recommend having around $500 worth of spend in a Performance Max campaign before implementing a target ROAS.

• Monitor Key Areas: We’ll monitor asset group performance, the insights tab, and product performance. The aim here is to gather hypotheses for testing in Month 2. This involves:some text
  • Asset Group Performance: Identifying which asset groups resonate best with users.
  • Insights Tab: Harvesting search themes and eliminating non-relevant audiences.
  • Product Performance: Evaluating which products are performing well and deserve more focus.

During this month, the main goal is to observe and gather enough data to make informed decisions for the next phase.

Month 2: The Testing Phase

By Month 2, we have a month’s worth of data, which, while not extensive, allows us to start forming hypotheses for optimization based on conversions—our primary focus. Testing different strategies to determine what works best for your specific account is essential.

Key Tactics:

• Review the Performance Max Script: Analyze where the spending is going. If a significant portion is directed toward shopping, we might consider complementing it with dedicated search campaigns.

• Review Insights Tab: This allows for introducing new search themes and removing underperforming audience signals.

• Asset Group Performance Review: We analyze which asset groups are consuming significant spend and driving conversions.

• Conduct Testing:some text
  1. Feed-Only Asset Group: Limit this asset group to three headlines, one long headline, one description, and no audience signals to encourage more spending in shopping.
  2. No Audience Signal: Test running the campaign based solely on Google Merchant Center data.
  3. Customer Data Only: Use only customer match lists to target previous purchasers, optimizing performance through tailored audiences.
• Review Product Performance: Focus ad spend on top-performing products, excluding those that do not yield a satisfactory return.

Month 3: The Scaling Phase

By Month 3, we should have identified which tests performed best. Our objective is to scale these high-performing strategies while refining our approach to maintain optimal performance.

Key Tactics:

• Pause Low-Performing Tests: Focus solely on strategies that yield results.

• Scale High-Performing Tests: Increase the investment in successful campaigns while applying further incremental tests to the identified winning formula.

• Review Product Performance Again: Concentrate on advertising the most profitable products instead of spreading the budget too thinly across many.

Conclusion

This structured approach to optimizing Performance Max campaigns during the first three months can significantly improve your advertising outcomes. While there is no specific checklist to follow, these foundational strategies will guide your optimization process.

If you're an e-commerce brand and would prefer professional assistance, feel free to reach out through the link to schedule a call. We can discuss your current performance and explore strategies for improvement.