PMax vs. Demand Gen: Which is Right for Your B2B Google Ads Strategy?

By: Jyll Saskin Gales, Google Ads Coach

Using Google Ads effectively can be particularly challenging for B2B marketers. With various campaign types available, choosing the right one for your specific needs is crucial. Are you wondering whether Performance Max (PMax) or Demand Gen campaigns are the better fit for your B2B clients?

In this article, we'll discuss:

• The key differences between PMax and Demand Gen campaigns.
• The strengths and weaknesses of each campaign type for B2B marketing.
• Why Demand Gen might be a good starting point for search-focused B2B advertisers.
• How to test and evaluate the effectiveness of visual campaigns.
• When and why PMax might be the next step after Demand Gen.

Understanding the Key Differences: Performance Max vs Demand Gen

Let's start by clarifying the fundamental differences between PMax and Demand Gen. PMax is an all-encompassing campaign type that leverages all of Google's advertising channels, including Search, Display, YouTube, and Gmail. Demand Gen, on the other hand, focuses on visual campaigns across YouTube, Discover, and Gmail; it does NOT include Search inventory.

One of the biggest advantages of PMax is this ability to tap into Search inventory, which is often a primary channel for B2B marketers. However, PMax doesn't offer any control over targeting, whereas Demand Gen lets you specifically choose your audiences.

Demand Gen: A Stepping Stone for B2B

Despite its name, Demand Gen isn't solely for generating new demand. It's a versatile campaign type that excels at engaging specific target audiences through visual ads. For B2B advertisers who have traditionally relied on Search campaigns, Demand Gen provides an opportunity to explore the effectiveness of visual mediums.

Demand Gen allows you to use Lookalike audiences, which can be invaluable for reaching potential clients who share characteristics with your existing customers.  Additionally, it offers detailed asset-level reporting, providing insights into which visuals and messages resonate best with your audience.

Testing Before Going All In

Before diving headfirst into PMax, consider testing Demand Gen first. This approach allows you to gauge the effectiveness of visual campaigns and audience targeting. If Demand Gen, combined with Search, yields positive results, then PMax might be a logical next step.

However, if Demand Gen fails to deliver satisfactory outcomes, it's unlikely that PMax will succeed unless it primarily serves ads on Search inventory. This testing phase is crucial for making informed decisions and optimizing your B2B advertising strategy.

When to Consider PMax for B2B

If Demand Gen proves successful, PMax can offer even broader reach and potentially higher conversion volume. PMax's ability to leverage all of Google's advertising channels can help you reach a wider audience and capture leads across various touchpoints.

Think of Demand Gen as a trial run, and PMax as the full-scale production. By testing Demand Gen first, you can gather valuable insights and ensure that your PMax campaigns are set up for success.