Restructuring Google Performance Max Ads For 22% ROAS Improvement
An established brand and long-time client is always looking for ways to increase revenue from ads and reduce advertising costs.
Google Performance Max (PMAX) campaigns have a lot of positives: Advanced A.I. bidding, intent-based search and display visibility, and excellent retargeting ad coverage. But they also have a lot of negatives, the biggest of which is a lack of visibility into where ad dollars are going and how different products and terms are being bid against.
Historically, Google has advised advertisers to limit the number of PMax campaigns in their account, as this provides each campaign's A.I. model with more conversion data. However, as the A.I. models have improved, many of our clients have benefited from breaking products out into seperate campaigns by performance, product type, and brand (or non-brand).
We restructured our client's existing ads by brand and non-brand, reducing our bidding for branded traffic and freeing up additional budget for non-brand traffic.
After six weeks, we'd seen our client's ROAS increase 18% with no change in ad revenue but a reduction in spend. With additional tweaks and another 6 weeks, the total cost reduction was 22%, with no change in ad revenue.
Notably, the campaigns were not budget restrained, so it was not possible to spend more at the higher ROAS.