What's better? Google Shopping or Performance Max

Summary

This video guides e-commerce brands on choosing between Google Shopping and Performance Max campaigns for 2024. The speaker emphasizes that the decision depends on product type, search volume, and past conversion data. For new businesses, it's recommended to start with Google Shopping and Search campaigns, moving to Performance Max once there's enough conversion data. The video discusses the pros and cons of both campaign types, stressing the importance of optimizing ads correctly for success. The speaker also offers a Google Ads e-commerce optimization checklist to help businesses improve their campaign performance.

Takeaways

• 🛍️ Focusing on the right campaign type (Shopping vs. Performance Max) depends on factors such as product type, search volume, and current performance.
• 🔍 Products with little or no search volume need educational campaigns (Google Display, Video), while high-search volume products can start with Google Shopping.
• 🎯 New Google Ads users should start with a combination of Google Shopping and Search campaigns rather than jumping straight into Performance Max.
• ⚙️ Performance Max campaigns are ideal only after accumulating sufficient conversion data (at least 1 transaction per day for 30 days).
• 📊 Google Shopping allows for more optimization through keyword targeting, negative keywords, and tweaking product titles based on search terms.
• 💡 Performance Max campaigns target new customers by using conversion data to generate customer profiles and reach similar audiences.
• 🚫 It's important to avoid switching to Performance Max too early, as it relies heavily on existing data for effectiveness.
• 📈 A well-performing Google Shopping campaign should not be replaced with Performance Max unless scaling is necessary or performance declines.
• 📝 For e-commerce success in 2024, campaigns need to be optimized regularly through negative keywords, product title modifications, and targeted ads.
• 👨‍💻 Combining Performance Max and Shopping campaigns strategically can enhance overall e-commerce performance, especially when focusing on new customer acquisition.

Q & A

What is the primary focus of the video?

The video focuses on helping e-commerce brands decide between using Google Shopping or Performance Max campaigns to increase sales and optimize return on ad spend (ROAS) in 2024.

What key factors should an e-commerce business consider before choosing between Shopping and Performance Max campaigns?

The business should consider the type of products being sold, whether there is existing search volume for the product, and the current performance of their Google Ads campaigns, especially in terms of conversions over the last 30, 60, and 90 days.

When is it recommended to use Google Shopping campaigns over Performance Max?

If the e-commerce business is just starting with Google Ads, it is recommended to start with a combination of Google Shopping and Search campaigns, especially if the product has high search volume and the business is not yet generating consistent conversions.

What is the advantage of using Google Shopping campaigns?

Google Shopping allows businesses to review search terms, add negative keywords, adjust product titles, and refine the searches their ads appear on. This level of control helps optimize the performance of ads and target more relevant searches.

Why should businesses wait to use Performance Max campaigns?

Businesses should wait to use Performance Max until they have sufficient conversion data, ideally at least 30 conversions over 30 days. Performance Max relies on existing conversion data to create an effective customer profile and find similar audiences.

What does Performance Max campaign do differently compared to Google Shopping?

Performance Max uses machine learning to target potential customers who are not actively searching for your product. It leverages existing conversion data to find audiences similar to those who have already made purchases, expanding reach beyond typical search users.

When should Performance Max campaigns be considered in a Google Ads strategy?

Performance Max should be considered when an e-commerce business has built up a good amount of conversion data from Shopping campaigns, and is looking to scale their reach by targeting new potential customers that may not be directly searching for their products.

What role does search volume play in deciding between Shopping and Performance Max?

Search volume is crucial when deciding between the two campaigns. If a product has low or no search volume, Performance Max might not be effective initially. In this case, businesses may need to focus on market education through display or video ads, while still running Google Shopping campaigns to capture any traffic that arises.

How can product titles in Google Shopping campaigns influence search term targeting?

In Google Shopping campaigns, product titles heavily influence which search terms trigger ads. Businesses should optimize titles with relevant keywords, brand names, and product modifiers to ensure they appear in searches that align with their products.

Why is conversion data so important for Performance Max campaigns?

Conversion data helps Performance Max campaigns identify the demographics, audiences, and types of searches that are most likely to convert. This data enables the campaign to optimize targeting and maximize conversion potential by reaching similar users.