Google Ads Launches Budget Tests for Performance Max

Performance Max campaigns are known for their ability to use artificial intelligence to optimise across channels. This makes them a powerful tool for reaching customers and increasing conversions. With the new method, advertisers can simulate the potential impact of budget shifts, allowing them to make data-driven decisions and maximise return on investment.

How to Shift Budgets to Performance Max

To test the effectiveness of budget shifts, follow these steps:

• Click the Campaigns icon in your Google Ads account and navigate to the Experiments page.
• Click the “+” button and launch a new Performance Max experiment.
• Select an eligible existing DSA or Google Display Ads (GDA) campaign. Ensure it is active and not part of another experiment.
• Split the traffic percentage between control (DSA or GDA) and test campaign (Performance Max).
• Create a new Performance Max campaign to serve as the test group. Ensure creatives, budgets, and bidding strategies are set to support your objectives.
• Review assets, budget, and bid settings in the migration flow. When satisfied, click Create experiment.
• Rename the experiment and set start and end dates before scheduling.

Why Use Budget Shifts in Google Ads

1. Traffic Split

This feature allows advertisers to decide what portion of traffic to direct to the original campaign and what portion to the new Performance Max campaign. This gives you control over testing and better ability to analyse performance.

2. Recommendations Based on Statistical Significance

Google marks campaigns with sufficient historical data as “Recommended”. This means these campaigns have the potential to deliver reliable experiment-based results.

3. Clear Performance Analysis

Experiments offer clear comparison of key metrics, enabling better understanding of the benefits of shifting budgets from original campaigns to Performance Max.

Benefits for E-commerce

The Google Ads update promises useful tools to facilitate campaign management and more efficient budget utilisation. Marketers should better understand ad performance and make informed decisions about future advertising. Let’s look at the expected advantages:

Budget Optimisation Based on Performance

Through data analysis, you can precisely identify which campaigns deliver the best results. This allows you to shift budgets where they have the most impact, ensuring maximum ROAS.

Advanced Targeting and Optimisation Options

Performance Max offers innovative tools that simplify the campaign targeting and optimisation process. These options enable more precise targeting of your audience, leading to more effective customer engagement.

Data-Driven Strategic Decisions

The update enables experiments with statistically significant results. This data provides marketers with reliable insights for making decisions based on real facts, not estimates.

Testing Budget Change Impacts

Simulation tools allow testing how budget shifts between campaigns would affect overall performance. This way, you can maximise campaign efficiency before making any changes.

The update is designed to give marketers a competitive advantage in the dynamic digital advertising environment and help them fully utilise the possibilities offered by Google Ads. With these tools, marketers can more effectively achieve their business objectives.