Google Performance Max Campaigns for Local Business

If you have been running Google Ads for your local business, you have probably noticed Google pushing a campaign type called Performance Max (or PMax). It was introduced in 2021 and has become an increasingly prominent part of the Google Ads platform. But what exactly is it, and is it right for your local business?

This guide explains Performance Max in plain terms and helps you decide whether it belongs in your advertising strategy.

What Is Performance Max?

Performance Max is a goal-based campaign type that allows you to run ads across all of Google’s advertising channels from a single campaign. That means your ads can appear on:

  • Google Search
  • Google Maps
  • YouTube
  • Gmail
  • Google Display Network (banner ads on websites)
  • Google Discover feed

Instead of creating separate campaigns for each of these channels, Performance Max uses Google’s machine learning to automatically distribute your budget across channels based on where it predicts the best results.

You provide Google with your goals (such as leads or sales), your budget, your ad creative assets (text, images, videos), and your audience signals. Google’s automation handles the rest, deciding when, where, and to whom your ads are shown.

How Performance Max Differs From Traditional Campaigns

With traditional Google Search campaigns, you choose specific keywords, write ads, and control where and how your ads appear. You have granular control over every element.

Performance Max works differently:

  • You do not choose specific keywords. Instead, you provide audience signals and let Google’s machine learning find the right people.
  • You cannot control which channels your ads appear on. Google decides the mix based on performance data.
  • Reporting is less detailed. You get overall campaign performance data but limited visibility into which specific channels or placements are driving results.
  • Google’s automation handles bidding and targeting. You set the goal and budget; Google optimises the delivery.

Benefits of Performance Max for Local Business

Reach Across All Channels

Performance Max lets you appear on Google Search, Maps, YouTube, and more with a single campaign. For a local business that does not have the time or expertise to manage campaigns across multiple platforms, this is a significant advantage.

Google Maps Integration

For local businesses, one of the most valuable aspects of Performance Max is its ability to show your business on Google Maps through Local campaigns. When someone nearby searches for your type of service, your ad can appear prominently in Maps results.

Simplified Management

Rather than juggling multiple campaign types, Performance Max consolidates everything into one campaign. This can save considerable time for business owners managing their own advertising.

Machine Learning Optimisation

Google’s machine learning analyses vast amounts of data to optimise your campaign in ways that would be impossible to do manually. Over time, the system learns which combinations of creative, audiences, and channels deliver the best results for your specific business.

Potential Drawbacks

Limited Control

If you like having precise control over where your ads appear and which keywords trigger them, Performance Max can feel like a black box. You hand over significant control to Google’s automation.

Limited Transparency

Reporting in Performance Max is less detailed than traditional campaigns. It can be difficult to understand exactly where your budget is going and which elements are performing well or poorly.

Requires Quality Creative Assets

Performance Max works best when you provide a full set of creative assets: headlines, descriptions, images, and ideally video. If you only have basic text ads, the campaign’s reach is limited.

Needs Time to Learn

Performance Max campaigns need time to gather data and optimise. Expect at least four to six weeks of learning before the campaign hits its stride. During this period, results may be inconsistent.

Risk of Wasted Spend

Because you cannot control placements as precisely, there is a risk that some of your budget goes to channels or audiences that do not convert well for your business. This is particularly relevant for businesses with small budgets.

Setting Up Performance Max for Local Business

If you decide Performance Max is right for your business, here is how to set it up effectively.

For local businesses, linking your Google Business Profile to your Google Ads account is essential. This enables your ads to appear on Google Maps and in local search results with your business information.

Step 2: Set Your Goals

Choose the actions you want to optimise for. For most local businesses, this will be:

  • Phone calls
  • Contact form submissions
  • Direction requests
  • Store visits (if applicable)

Make sure conversion tracking is set up correctly before launching the campaign.

Step 3: Set Your Budget

Start with a budget you are comfortable with for at least six to eight weeks. Performance Max needs sufficient data to optimise, so too small a budget may not give the algorithm enough to work with.

A minimum of $30 to $50 per day is a reasonable starting point for most local businesses.

Step 4: Create Your Asset Groups

Asset groups are collections of creative elements that Google mixes and matches to create ads. Provide as many quality assets as possible:

Text assets:

  • Up to 15 headlines (maximum 30 characters each)
  • Up to 5 long headlines (maximum 90 characters each)
  • Up to 5 descriptions (maximum 90 characters each)
  • Your business name and display URL

Image assets:

  • Landscape images (1200 by 628 pixels)
  • Square images (1200 by 1200 pixels)
  • Portrait images (960 by 1200 pixels)
  • Your logo in square and landscape formats

Video assets (optional but recommended):

  • At least one video (YouTube hosted)
  • If you do not provide video, Google may auto-generate one from your other assets (the quality is often poor, so providing your own is strongly recommended)

Step 5: Add Audience Signals

Audience signals tell Google who your ideal customers are. While Google will target beyond these signals, they help the machine learning start in the right direction.

Useful audience signals for local businesses:

  • Your customer list (email addresses of existing customers)
  • Website visitors (through remarketing tags)
  • Search themes (keywords related to your business)
  • Interest and demographic categories

Step 6: Set Location Targeting

Critical for local businesses. Target your specific service area and select “Presence: People in or regularly in your targeted locations” to ensure your ads reach people who are actually in your area.

Best Practices for Local Business

Do not replace your Search campaigns immediately. If you have existing Search campaigns that are performing well, keep them running alongside Performance Max. Monitor performance over two to three months before making changes.

Provide strong creative assets. The quality and variety of your assets directly impact campaign performance. Invest time in creating compelling headlines, descriptions, and images.

Monitor and adjust. While Performance Max is automated, it is not set-and-forget. Review performance weekly and adjust your goals, budget, and assets based on results.

Be patient. Give the campaign at least six weeks before judging its effectiveness. Early results may not reflect long-term performance.

Check asset performance. Google rates your assets as “Low,” “Good,” or “Best.” Replace low-performing assets with new options to continually improve.

Is Performance Max Right for Your Business?

Performance Max can work well for local businesses that:

  • Want to reach customers across multiple Google platforms
  • Have a reasonable budget (at least $900 to $1,500 per month)
  • Can provide quality creative assets (images, headlines, descriptions)
  • Are comfortable with Google’s automation handling targeting
  • Have proper conversion tracking in place

It may not be the best fit if you:

  • Have a very small budget (under $500 per month)
  • Want precise control over where your ads appear
  • Only want to advertise on Google Search
  • Do not have quality images or creative assets available

Need Help With Google Ads?

At Cosmo Web Tech, we manage Google Ads campaigns for local businesses across Western Sydney, including Performance Max campaigns. We can help you set up, optimise, and monitor your campaigns to ensure you get the best return on your advertising investment. Contact us for a free consultation.

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