Google is implementing changes to the auction process for Performance Max and Standard Shopping campaigns starting in October.
Key changes:
- Performance Max will no longer automatically outperform Standard Shopping campaigns.
- The ad with the highest Ad Rank will now be chosen for overlapping campaigns.
- This aligns these campaigns with the auction behavior of other campaign types.
Why we care. This update changes how these campaigns compete, potentially affecting strategies and outcomes during a crucial sales period. While offering more flexibility, it necessitates adjustment for successful holiday campaigns.
By the numbers:
- During Q4 2023 holiday peak, Performance Max achieved 17% higher ROAS than AI-powered social campaigns, according to a TransUnion study.
Between the lines. Google aims to provide more flexibility and simplify testing while maintaining or improving overall performance.
What they’re saying. Google anticipates a “neutral or positive impact on performance at the account level.”
A change was shared by Mike Ryan, Head of Ecommerce Insights at Smarter Ecommerce, expressing positive sentiments about Google’s recent decisions.
What to watch:
- How advertisers adjust budgets and targets in response
- Impact on campaign management strategies
Best practices for advertisers:
- Adjust budgets and targets as needed
- Ensure Performance Max campaigns follow fundamentals:
- URL Expansion
- Strong asset groups
- Quality creatives and video
The big picture. This update aligns with Google’s drive towards AI-driven advertising while offering advertisers more control.
Bottom line. Advertisers should prepare to optimize their strategies to take advantage of these changes during the holiday shopping season.
About the Author:
Anu Adegbola is the Paid Media Editor at Search Engine Land since 2024. She covers topics such as paid search, paid social, retail media, and video. Anu began her career in 2008, focusing on digital marketing campaigns and strategy development. She is also the founder of the PPC networking event, PPC Live, and hosts the weekly podcast, PPCChat Roundup. An accomplished international speaker, Anu has presented at numerous events worldwide.
