Strategies for Achieving Ecommerce Success: Maximizing Performance with Max
In the world of ecommerce, Performance Max (PMax) advertising spend towards Shopping Ads is significant. However, many marketers struggle to leverage its full potential. The key to achieving success lies in the campaign structure. At SMX Advanced 2024, Andrew Lolk, founder of Savvy Revenue, shared valuable insights on optimizing Google’s Performance Max campaigns for ecommerce businesses.
Performance Max has become the dominant campaign type for ecommerce, with shopping ads accounting for up to 95% of the spend. Despite this dominance, Performance Max still lacks crucial insights and control compared to traditional campaign types.
Andrew Lolk compared Performance Max to Meta Ads, highlighting that Google’s Performance Max algorithm lags behind Meta’s in terms of ad targeting and optimization without search intent. He explained that Google doesn’t necessarily need to catch up to Meta as search ads are still a significant source of revenue for the company. Creating an algorithm similar to Meta’s is not an easy task, and Google’s struggle to effectively utilize its diverse ad inventory across YouTube, Display, and Search is evident.
When it comes to campaign structures, Lolk provided several strategies for better performance. He emphasized the importance of including first-party data and customer lists in the campaign setup. By leveraging audience data from sources like Klaviyo and email lists, marketers can enhance their targeting efforts. However, caution should be exercised when it comes to new customer acquisition settings. Lolk advised only touching it if one knows how to do it effectively.
Separating brand and non-brand campaigns can lead to better budget control and performance. Marketers should evaluate whether to include search ads and display/video based on their specific needs and ability to manage potential waste. While search ads can be an easy extra revenue source, they offer low visibility into search terms. Without insights in Performance Max, it can become highly wasteful. However, standard shopping campaigns still offer valuable control through priority settings and focused ad inventory. Lolk highlighted that standard shopping campaigns are not to be overlooked and can be particularly useful when doing a brand and non-brand split.
To maximize performance, Lolk suggested advanced campaign structures. These include separating campaigns for main products and accessories, splitting high and low performers into separate campaigns, creating distinct campaigns for different seasons or collections, and considering separate campaigns for new products, best sellers, and underperforming items in large catalogs.
Lolk emphasized the importance of tailoring Performance Max campaign structures to solve specific business issues and align with overall marketing strategies. While Performance Max offers simplicity, advanced structures can significantly improve performance for ecommerce advertisers.
In conclusion, achieving ecommerce success with Performance Max requires careful consideration of campaign structures. By leveraging first-party data, separating brand and non-brand campaigns, and utilizing advanced structures, marketers can maximize their performance and drive optimal ROI. While Performance Max may still lack some crucial insights and control compared to other campaign types, it remains a dominant force in the ecommerce advertising landscape.
