Data on Google ads from both Performance Max (PMax) and Search campaigns indicate that they can show simultaneously and overlap with each other. This isn’t ideal if both types of campaign are being used, so it’s necessary to optimise them to ensure the most beneficial ads are displayed to the right user at the right time.
According to recent research by Adalysis, 67% of PMax campaigns have search terms that overlap with Search keywords. Also, when the same search term exists in both a Search campaign and a PMax campaign, 45% of the time search terms triggered both Search and PMax ads.
This overlap can result in dramatically different user experiences for the same search term. Some users may see a PMax ad, while others may see a Search ad. The ad shown can make a significant difference as PMax outperforms Search for impression count, whereas Search outperforms PMax for CTR. (This difference in CTR could explain why PMax generates more impressions than Search).
Most notably, Search outperforms PMax for conversion rates and values, as in recent tests the former had higher conversion rates for overlapping search terms 84% of the time. Search also had higher conversion values 84% of the time.
If PMax campaigns are being run for lead generation, the top search terms should show with Search ads. Since Search usually outperforms PMax for the same search terms, this will likely lead to more clicks, higher CTRs, conversion rates, conversion values and more return on investment (ROI).
Google states that search ads should show for all search terms identical to keywords of any match type. For all other search terms, it will use the campaign with the highest Ad Rank of any eligible keywords and PMax asset groups.
This implies:
- If your search theme is the same as an exact match keyword, the exact match keyword is prioritised.
- If your search theme is the same as a phrase or broad match keyword, Google can show an ad from your Search or PMax campaign.
PMax can provide excellent value, especially for ecommerce and for lead generation as it often functions as a cross-channel backfill, serving ads across the display network, apps and remarketing.
For Search campaign optimisation review your top PMax search terms to see if they are already Search keywords. If they aren’t, add them as exact match keyword. This simple step will help to prioritise Search campaigns over PMax campaigns.
Also, ensure every Search ad group uses relevant ad copy and landing pages, as this should increase CTRs and conversion rates for those terms.
Another approach is to pause PMax and focus on expanding the Search and Display campaigns using the data gathered. Several large advertisers have adopted this strategy recently.
If you want to know more about how optimising Google Ads campaigns for Search over PMax campaigns can help to improve your business’s ROI, please get in touch.