Friday, January 10, 2025

Google Ads Performance Max gets budget reallocation experiments

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Google Ads introduced a new way to evaluate the impact of reallocating budgets from Dynamic Search Ads (DSA) or Display campaigns to Performance Max (PMax) campaigns. The update could help marketers unlock greater efficiency and drive stronger results.

How it works:

  • Navigate to experiments: In your Google Ads account, head to the Campaigns section and select Experiments.
  • Create a new experiment: Click the plus button, choose Performance Max experiments, and select “Test vs. Search or Display campaign.”
  • Control setup: Choose an eligible DSA or Display campaign that meets statistical significance requirements.
  • Traffic split: Define how much traffic will be split between the control and PMax campaign.
  • Configure treatment: Build a new PMax campaign as the treatment group, ensuring assets, budgets, and bidding strategies align with goals.
  • Finalize and schedule: Name the experiment, set start and end dates, and launch it.

Why we care. This update allows you to run controlled experiments in Google Ads, providing clear insights into how reallocating budgets to PMax campaigns would perform compared to traditional campaign types like DSA or Display.

This data-driven approach helps you optimize your budget allocation with confidence, leading to more efficient ad spend and improved performance.

The big picture. Performance Max campaigns leverage Google’s AI to dynamically serve ads across Google properties, often yielding performance by optimizing creative, audience, and bidding in real time. This new experiment tool could help advertisers fine-tune their budget allocations with greater confidence.

What to watch. As Google continues pushing automation and AI-driven solutions, expect ongoing enhancements to PMax and more opportunities for advertisers to optimize for ROAS (Return on Ad Spend) at scale.

Dig deeper. Google Performance Max: Everything you need to know


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About the author

Anu AdegbolaAnu Adegbola

Anu Adegbola has been Paid Media Editor of Search Engine Land since 2024. She covers paid search, paid social, retail media, video and more.

In 2008, Anu’s career started with

 delivering digital marketing campaigns (mostly but not exclusively Paid Search) by building strategies, maximising ROI, automating repetitive processes and bringing efficiency from every part of marketing departments through inspiring leadership both on agency, client and marketing tech side.

 

Outside editing Search Engine Land article she is the founder of PPC networking event – PPC Live and host of weekly podcast PPCChat Roundup.

 

She is also an international speaker with some of the stages she has presented on being SMX (US), SMX (Munich), Friends of Search (Amsterdam), brightonSEO, The Marketing Meetup, HeroConf (PPC Hero), SearchLove, BiddableWorld, SESLondon, PPC Chat Live, AdWorld Experience (Bologna) and more.

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