What’s Better? Standard Shopping vs Performance Max Campaigns - Google Ads 2023

Summary

This video explains the pros and cons of using Standard Shopping versus Performance Max campaigns for e-commerce brands on Google Ads. The speaker shares insights based on personal experience, detailing different strategies, such as manual CPC and Target ROAS for Standard Shopping, and highlights the broader reach and scalability of Performance Max. The video emphasizes the importance of testing various campaign types to find what works best for each business. Additionally, the speaker provides advice for managing budgets and maximizing campaign performance, and invites viewers to work with their Google Ads agency for further assistance.

Takeaways

• 💡 Performance Max (pMax) campaigns replaced Smart Shopping in mid-2022, but Standard Shopping campaigns still have advantages.
• 🛒 Standard Shopping campaigns allow for more control over keywords, bid strategies, and negative keywords, which is useful for lower budgets.
• 📊 Target ROAS bidding strategy in Standard Shopping has been effective for optimizing conversions, especially for products not performing well in pMax.
• 💰 For smaller budgets, Standard Shopping can be more manageable since pMax can quickly consume ad spend without proper targeting.
• 🔑 Success with Google Ads, whether with pMax or Standard Shopping, requires testing different strategies to find what works best for each business.
• 📈 Performance Max offers broader reach across Google’s platforms (Search, Shopping, YouTube, Display, Gmail) and scales better with higher budgets.
• ⚙️ While pMax can automate campaigns for scalability, it offers less control, such as no negative keyword management or device bidding.
• 📉 In some cases, Performance Max campaigns can lead to irrelevant clicks from Display Network, increasing spend without conversions.
• 🧪 Segmentation in Performance Max is crucial; grouping products based on categories or price points can help optimize performance.
• 🔄 Both Standard Shopping and Performance Max require constant testing and adjustments to maintain consistency and profitability, with no one-size-fits-all strategy.

Q & A

What is the main purpose of the video?

The main purpose of the video is to compare standard shopping campaigns and performance Max (PMax) campaigns for e-commerce businesses, outlining the pros and cons of each, and helping viewers decide which campaign type is best suited for their business.

What does the creator say about the performance of standard shopping campaigns in the past?

The creator mentions that standard shopping campaigns performed very well in the past, with examples of high return on ad spend (ROAS) from campaigns that spent £50,000 with a 4.44 ROAS and £15,000 with a 5.4 ROAS.

Why is the creator starting to use standard shopping campaigns again?

The creator is using standard shopping campaigns again because they have found that certain products that didn’t perform well in Performance Max are now generating better results in standard shopping with a target ROAS bidding strategy.

What bidding strategy does the creator prefer for standard shopping campaigns and why?

The creator prefers using a target ROAS bidding strategy for standard shopping campaigns because it optimizes for conversions and conversion value, as opposed to manual CPC, which focuses on optimizing for clicks.

What are some advantages of standard shopping campaigns over Performance Max?

Standard shopping campaigns offer more control, including keyword management, the ability to exclude negative keywords, and more bidding strategies like manual CPC, maximize conversions, and target ROAS. This control is particularly useful for businesses with smaller budgets.

What are some of the disadvantages of standard shopping campaigns compared to Performance Max?

Disadvantages of standard shopping campaigns include being limited to the shopping network only, the inability to use advanced bid strategies like target ROAS without enough conversion data, and the fact that they don’t scale as easily as Performance Max campaigns.

What does the creator say about Performance Max campaigns in terms of scalability?

The creator explains that Performance Max campaigns scale much better than standard shopping campaigns, allowing for higher ad spend and consistent performance once they find success with the automated learning process.

What is a major challenge the creator faces with Performance Max campaigns?

A major challenge with Performance Max campaigns is the lack of control, such as the inability to manage negative keywords, individual bids, and device targeting. The creator also experienced random spikes in traffic from display ads, which led to unproductive clicks.

What strategy does the creator recommend for organizing products within Performance Max campaigns?

The creator recommends segmenting products into different asset groups based on categories or price points. For example, grouping products like leggings, tops, and shoes separately ensures that campaigns are better targeted based on product types and pricing goals.

What is the creator's final recommendation for choosing between standard shopping and Performance Max campaigns?

The creator recommends starting with standard shopping campaigns if you have a low budget, as they offer more control over spending. However, if you’re scaling and can afford higher ad spend, Performance Max campaigns may be a better choice due to their ability to scale and maintain consistency once optimized.