Google Ads: What is Performance Max?

Google Ads remains one of the most comprehensive digital marketing channels, allowing your business to reach customers across a wide range of platforms online. As part of its ongoing evolution, Google regularly introduces new features to improve performance and simplify campaign management.

Performance Max (also referred to as PMax) is one such development — a newer campaign type designed to streamline ad management while expanding your reach. It leverages Google’s AI to determine the most effective channels and placements to help you achieve your advertising goals.

This post provides a straightforward overview of Performance Max for NZ businesses: how it works, who it’s for, and whether it’s worth exploring.

What is Performance Max?

Performance Max is a goal-based campaign type that uses machine learning to optimise your ads across all of Google’s channels, including:

• Search
  
• Display
  
• YouTube
  
• Gmail
  
• Maps
  
• Discover
  

Instead of setting up separate campaigns for each channel, Performance Max allows you to run one unified campaign using your creative assets, goals, and audience signals. Campaign objectives can include online sales, lead generation, or website traffic. Once you’ve set a specific conversion goal, Google’s AI will automatically identify the best placements and audiences to maximise your results. It’s a smart way to broaden your reach while getting the most out of your budget.

How is it Different from Traditional Google Ads?

Traditional campaigns require manual setup and management per channel — for example, separate campaigns for Search and Display. Performance Max, on the other hand, runs across all channels through a single, AI-driven campaign.

Rather than manually targeting keywords as you would in Search campaigns, you provide creative assets and business goals, and Google’s AI handles the rest. Using real-time machine learning, it determines where, when, and how to show your ads for the best outcome.

Performance Max also uses Google’s Smart Bidding system, which optimises for conversions or conversion value during auctions. In traditional campaigns, Smart Bidding can be combined with Broad Match keywords to widen the scope of potential search queries. These developments are part of a broader shift towards AI-powered tools — including Google’s AI Overview — that continue to shape the digital marketing landscape.

What Are the Pros and Cons?

Pros:

• Expanded reach with minimal manual effort
  
  
• AI optimisation for conversions
  
  
• Ideal for ecommerce or lead generation with clear goals
  
  
• Works well with strong creative assets
  

Cons:

• Reduced control and transparency
  
  
• Harder to see exactly where your ads are running
  
  
• May not suit niche targeting or businesses with limited data
  

Should NZ Businesses Use It?

Yes, if you’re looking to simplify your Google Ads setup, have a sufficient budget and data, and are working towards specific conversion goals (like form fills, online sales, or phone calls).

Maybe not if you prefer hands-on control, want to test individual keywords, or need to focus on highly specific placements.

Performance Max is particularly effective for retailers, service providers, and businesses using Google Shopping — those wanting to access Google’s full advertising ecosystem with minimal setup. In 2025, many NZ SMEs are turning to PMax to broaden their reach without managing multiple campaigns.

Thanks to Google’s AI, Performance Max makes digital advertising more hands-off than ever. But it's important to weigh whether this broad, automated approach aligns with your business goals, or if a more controlled, channel-specific strategy suits you better.

Conclusion

Performance Max offers a powerful and streamlined way to advertise — but it’s not a one-size-fits-all solution.

Want help deciding if it’s right for you? Get in touch with Adhesion’s expert digital marketing team to get the most out of your Google Ads strategy.