Google Performance Max vs. Demand Gen Campaigns

This blog is your guide to mastering Google Performance Max (PMAX) and Google Demand Gen—complete with clear, actionable use cases tailored to different needs.

‍

What's the Difference Between Demand Gen and PMAX?

‍

First, let’s clarify the key differences between PMAX and Demand Gen campaign types and where they overlap.

Placements
1. Demand Gen: YouTube, YouTube Shorts, Google Discovery, Gmail
2. PMAX: Demand Gen placements + Search, Shopping, Display network, Google Maps
Targeting
1. Demand Gen provides more control over targeting, ad placements, and reporting insights.
2. PMAX relies on Google to control who sees what ads when and where.

‍

‍

When Does it Make Sense to Use Performance Max?

‍

PMAX offers a broad, full funnel approach, where users are engaged at all funnel stages from awareness to conversion, due to the large variety of placements PMAX runs on, such as Display, Shopping, and Google Maps.

‍

PMAX is a great option if you

Are struggling to scale search campaigns and looking for a campaign type that can act as a supplement to your search efforts.
Want a campaign that does all the work - after you provide it creative assets:

1+ square image(s)
1+ landscape image(s)
1 square logo
Primary Headline(s) - copy running outside of image
Primary Text(s) - copy running outside of image

Want efficient cost-per-lead (CPL) - however lead quality can sometimes be an issue.
1. If you run PMAX make sure you are using UTMs to track lead quality in your CRM.

‍

PMAX Targeting Capabilities

‍

PMAX relies on automated audience optimization using audience signals to expand targeting based on performance.

Overcome this by:

Submitting negative keyword lists to Google Support to avoid irrelevant searches (you cannot set negative keywords for PMAX in Google Ads at this time)
Install Google Ad scripts that give you insight into a channel breakdown report and other performance insights that Google doesn't show you within their platform

‍

PMAX Limitations and Workarounds

PMAX does not offer performance by placement, search term or channel, but offers insights into search themes and audience performance in Google’s UI. Marketers can address these gaps by:

Using tools like Google Analytics
Leveraging custom reporting solutions
Using scripts to extract channel performance data

Performance Max doesn’t directly support negative keyword implementation at the campaign level, but advertisers can use:

Account-level negative keywords (applied across all campaigns) in the Google UI

‍

When Does it Make Sense to Use Demand Gen? Targeting.

‍

Demand Gen is a top and mid-funnel campaign type, where users are targeted at the awareness and interest stages in their buying journey. Despite being top-to-mid funnel focused, Demand Gen is a great option if you are focused more on quality control rather than rapidly scaling your paid media efforts.

Targeting: The biggest differentiating factor between the two campaign types is that Demand Gen does offer more audience targeting controls, rather than giving the reins over to Google's AI. This allows advertisers to select specific audiences or opt out of optimized targeting entirely. The drawback to Demand Gen: Your reach will be smaller than PMAX since ads are served on less networks

‍

For example: When opted in to optimized targeting, your audiences effectively work as audience signals - the same as PMAX. If you opt-out, you target those audiences specifically. By default, advertisers are now opted in.

‍

Reporting: Demand Gen lacks granular transparency, particularly regarding performance across networks like Gmail, YouTube, and Discover, where only basic segmentation is available, however it now provides visibility into YouTube channel placements.

‍

Strategy Summary - When & How to Use Demand Generation vs. PMAX Campaigns

‍

Demand Gen (Mid-Funnel): #1 Priority is targeting control and pushing users down the funnel to the conversion stage - lead quality and campaign control is a top priority since you have more ability to review targets/placements. Use Demand Gen for brand awareness or targeting specific audiences, such as using lookalike audiences.

‍

Performance Max (Lower Funnel): The #1 priority is scaling campaigns quickly and efficiently to maximize reach and conversion volume across multiple Google inventory types. Use PMAX for efficient lead generation and to quickly scale.

‍

Testing: PMAX can start with a lower budget compared to Demand Gen, making it a more accessible option for testing. To evaluate performance, tests should ideally run for 4-6 weeks, though duration depends on budget and goals. It’s important to note that both campaign types require quality conversion signals. Industries without conversion tracking (e.g., restrictive healthcare) should avoid testing these.

‍