Performance Max Campaign Strategy for eCommerce
Switching to Performance Max campaign type for e-commerce businesses makes a lot of sense in that it is the main vertical that has an abundance of additional data points to feed into the automated Machine Learning (AI) that powers this campaign type. As Google rolls out more features as requested by its Users then it will become more useful and importantly more trustworthy.
You can make a choice and any business has a number of different options as how to deliver this. My advice it to do both but quickly build out fallback Search Campaigns and Standard Shopping Campaigns. This is Omnichannel with Multi-Channel Support. It will deliver measurable incremental sales, revenue and ROAS.
Growth Strategy and Rollout of an eCommerce Business from Launch to Maturity
Create Product, Brand (App) Videos and image library. Populate Google Merchant Centre Feed(s)
Got an App?
Launch App Campaign
Define and build 1st Party Audiences and Identify 3rd Party Audience Targeting
100% Automation?
Launch Performance Max Campaign(s)
Got Branded Competitors or resellers?
YES
Launch Brand Search Campaign(s)
Standard Shopping Matured?
YES
Launch Product Search Campaign(s)
Product Search Matured?
YES
Expand into DSA Campaign / Ad Group + Broad Match
Product Search Matured Again?
YES
Launch Display / Discovery / Video Campaign(s)
STOP HERE
Launch (Dynamic) Remarketing Campaign(s)
Audiences Matured?
YES
Performance Max for Shopping Campaign Strtucture
As with Google Ads Smart Bidding Strategies there is a Best way to roll out the campaign structure of Performance Max campaigns and its based on the same fundamental principles that AI and Machine Learning algorithms need Good Data In, in order to get Good Data Out. Good Data out for ecommerce means maximising sales, revenue and ROI.
The Primary Signal that Performance Max campaigns use as their guiding light is the Target ROAS (tROAS) Bid Strategy. I expand on the fundamentals of this in the link above.
Maximum Account Level PMax Performance = Realistic Campaign Level tROAS Bid Strategy Setting + Max Data Throughput (conversions) at Campaign Level
“Avoid having more than one campaign per realistic tROAS”
1. One Campaign per ROAS
In practice this means avoiding having multiple campaigns competing for ROAS. The main improvement of the PMax Campaign type is not just Omnichannel, it is having a diverse number of creative assets available for use within the Campaign Structure. This means there shouldn’t be any product overlap between Campaigns* and products that compete at a similar ROAS should be added to the same Campaign within their own Asset Group.
“* Any Business Priority Products will need to be included in a separate campaign and given its own lower ROAS which can include product duplication, if needed.”
2. One Campaign as an Override (Lowest ROAS)
This is the Campaign that can take priority and override “normal” best practice because the business has a higher need e.g.
We’ve got tonnes of spare stock
We need to get rid of old stock
We have a new product line to promote
We have a sale on
It may be an “always-on” Campaign depending on the business need.
It takes priority by having the lowest target ROAS and hence the most aggressive bid strategy to outbid the competition (and any other PMax Campaigns within the Account.
It doesn’t matter if these items are also in the other Campaign(s) as it should outbid them unless a higher ROAS is expected thus overriding the override!
Maxing Out On “Max Conversion Value” for New Advertisers or Those with Limited Budgets
The scenario is
For whatever reason you have no conversion data yet for the products within the Campaign or indeed the whole business as a whole is launching
AND/OR there are conversions but less than 30 / month at Campaign level and therefore most Product Groups have way less than 30 conversions / month
AND/OR budgets are constrained compared to the size of the market
Sounds Familiar?
Adopt a Max Conv Value Bid Strategy for your Account. If there are multiple campaigns with no overriding business objective for having them, then consolidate them all into a single Campaign with a well segmented Product Group structure and great creative ad assets.
“A Max Conversion Value Bid Strategy with 1 or 2 Campaigns should be the most common account structure in Google Ads..... but it is rare to see this.... The secret to success is found from within the Campaign Structure at Product Group Level...”