Performance Max vs. Standard Shopping: Which is better for ecommerce?

 By: Jyll Saskin Gales, Google Ads Coach

Are you an ecommerce business owner or marketer trying to decide between Performance Max and Standard Shopping campaigns for your Google Ads strategy? Both options offer unique benefits, but the best choice for you depends on several factors. Let's break down the key differences between these two campaign types and help you determine which one aligns best with your business goals and resources.

What is Performance Max?

Performance Max is Google's AI-driven campaign type, designed to maximize your reach and conversions across all of Google's channels, including Search, Display, YouTube, Discover, Gmail, and Maps. It uses machine learning to optimize your bids, targeting and creative, making it a potentially powerful tool for driving results.

What is Standard Shopping?

Shopping campaigns let you show ads solely on Google Shopping, allowing you to promote your products directly in search results and on the Shopping tab. It offers more control over your targeting and placements compared to Performance Max.

When to Choose Standard Shopping over Performance Max

Standard Shopping is often the better choice for beginners or businesses with limited budgets. It's a simpler campaign type to manage and provides more transparency into your performance data. 

If you're new to Google Ads or have a budget of less than $50 per day, starting with Standard Shopping can help you learn the ropes and establish a solid foundation before venturing into Performance Max.

Here are some specific scenarios where Standard Shopping might be the better option:

• New Google Ads accounts: If you're just starting with Google Ads, Standard Shopping is a great way to test the waters and learn how the platform works.
• Small budgets: With a limited budget, you'll want to focus your resources on the channels that are most likely to drive conversions. Standard Shopping allows you to do this by focusing solely on Google Search & Shopping.
• Unknown or new brands: If your brand is not well-known, you'll need to focus on building awareness and generating demand. Standard Shopping can help you reach potential customers who are actively searching for products like yours.

When to Choose Performance Max over Standard Shopping

Performance Max can be a valuable tool for businesses that are already seeing success with Google Ads and want to scale their campaigns. It's also a good option for businesses that want to expand their reach beyond Google Shopping and tap into other Google channels.

Here are some specific scenarios where Performance Max might be the better option:

• Established Google Ads accounts: If you're already running successful Google Ads campaigns, Performance Max can help you take your performance to the next level by automating your targeting and placements at scale.
• Larger budgets: With a larger budget, you can afford to experiment with different channels and strategies. Performance Max can help you identify the most effective combinations for your business.
• Desire for increased demand: If you're looking to generate more demand for your products or services, Performance Max can help you reach a wider audience across multiple channels.

Making the Right Choice for Your Business

Ultimately, the best way to decide between Performance Max and Standard Shopping is to consider your specific business goals, budget, and resources. 

If you're a beginner or have a limited budget, start with Standard Shopping. If you're an experienced advertiser with a larger budget and want to scale your campaigns, Performance Max might be the way to go.

No matter which campaign type you choose, remember that optimization is key. Continuously monitor your performance, test different creative, and make adjustments as needed to ensure you're getting the most out of your Google Ads investment.