Case Study: Generating High Returns With Google PMAX
- Jade Javier
- Apr 2
- 5 min read
There has been tremendous chatter on which is better: PMAX is better vs. Google Shopping campaigns for sales conversions. YRV Dynamics took to task and analyzed PMAX vs. other Google placements. Before we begin, let's discuss PMAX briefly.
PMAX launched in November 2021; it's more recent than other Google products. In September of 2022 (roughly 10 months later), Smart Shopping campaigns were eventually replaced by PMAX.
PMAX is a goal-based placement that shows advertiser ads across Search, Demand Gen, Gmail, Display, Shopping, and YouTube.
The benefits and drawbacks of MAX
It's all-in-one, meaning two audiences should be included: one with CRM/RET signals and an ACQ audience. PMAX will then take those seed audiences, extrapolate top-performing segments, and scale the buy.
There is limited control between placements, meaning it’s a black box regarding reporting. You cannot get nuanced Search or Display/ YouTube creative reporting in PMAX. Therefore, informing other portions of your campaign, such as SEO from PMAX results, won't be an option.
Content is uploaded, by placement criteria. These include 20 images (Display and Demand Gen), 5 videos (will only accept YouTube links), shopping feed from the merchant center, and standard headlines and descriptions.
Do not include Search or Display partners. Keep advertising with the respective platform—for instance, flighting Search with Google Search, not Search Display Partners. The same applies to YouTube; ads should stay with YouTube, not video display.
Traditionally, there’s a long lead time earning results with PMAX. Recently, this has normalized. However, PMAX will spend funds for 1+ weeks for its internal experiments before yielding results. 12 months after debuting, the learning period was one month.
You can use various bidding strategies for PMAX, ranging from CPA, tROAS & CPL
Side note: Ensure your conversion tracking is linked via GA4 or GTM. Page View, ATC, IC, Submit Lead Form. These will all be used to push users to a path of conversion. Ensure “Primary” and “Secondary” labels are set up correctly.
Now, onto our comparison: Per our result below, PMAX has over 10+ ROAS for nearly 60 days.
PMAX was used for all product SKUs in the merchant center
Seed audiences used: email and remarketing + men and women apparel Google audiences (fashion vertical)
Placements: Shopping, Display, and Search were used; YouTube videos were unavailable. Unless you turn off pre-roll, PMAX will make videos based on your static assets. Look for the “automatically create assets” box and ensure this is off.
tROAS of 3.5 ROAS, but earning roughly three times that projection. Our approach was a low tROAS to enter as many auctions as possible. Using tROAS above 4 will delay the algorithm entering auctions unless it knows it can win. This is one of the main reasons buyers who aim for a higher tROAS spend little or minimally. The best approach with PMAX is to set the tROAS as 2.25 to 3.5. This will allow it to enter as many auctions as possible with high-value products. For tROAS, this is the equivalent of the Maximum Conversion Value option. Meaning if you enter more bids, PMAX will gravitate to shoppers the highest return on ad spend.
Standard Shopping is over a 5.4 ROAS for the same flight, again same client.
This is a traditional standard shopping campaign. The return is compelling, but there’s 55% less return on ad spend vs. PMAX, which is still above the benchmark.
The tROAS for this campaign was set lower at 3.25 but still yielded a solid result of 5.5. The Google algorithm prioritizes PMAX when Standard Shopping and PMAX are used concurrently. I recommend a wide product set + a wider audience, so placements do not bid against each other. However, if Standard Shopping and PMAX target “shoes,” + males, PMAX will take priority, and Standard Shopping will not spend. By flighting both placements, Standard Shopping can focus on “dresses” or “t-shirts,” while PMAX focuses on “shoes” SKUs for that day. Again, this works for a wide product set + a wide audience. This strategy will not work if the audience and product sets are too narrow.
Brand Search is over a 17.3 ROAS in the same time comparison.
Brand terms were only used. Therefore, the results are skewed to users already aware of our fashion client. However, since this is fashion, conquesting your brand terms is a compelling strategy leading into the holiday season. We also wanted to increase awareness for a Black Friday promo code in November. The goal was to target fence-sitters who searched our brand and motivate them to purchase.
Since Search is used in PMAX and brand, PMAX will steer clear brand terms to prevent double bidding. This is an advantage with PMAX, as the search terms will be non-brand. The problem is that you cannot view what non-brand terms PMAX uses — -again, it's a black box.
It's a solid spend as we currently have an 80% impression share with brand terms. Ideally, 90%+ is better when targeting brand KWs. However, I like to conduct experiments with non-brand terms and analyze the search terms used to target those users. You can only view that data with Search campaigns.
In conclusion, PMAX is a solid fit for any e-commerce client. Instead of relying on shopping campaigns, PMAX allows Google to scale its reach for greater purchase consideration. We also recommend using PMAX in conjunction with other placements; as you can see above, this resulted in a compelling return on spend across the board.
Click here to follow the conversion on YouTube with my video “Google Ads: Tips and Tricks to Boost Performance.” We also have a weekly podcast you can view by clicking here.
Yousaf is the CEO and Founder of YRV Dynamics. Let us know how we can help your company stay ahead and give your brand a compelling roadmap. Discover other industry tips by visiting our agency’s site, YRV Dynamics. Unlock your potential today by having us shape your brand’s digital story.
Yousaf Yunes is the CEO/ Lead Founder / Principal at YRV Dynamics, with more than 15 years of expertise in the advertising industry. He’s garnered a Top Rated Plus status on Upwork, earning a perfect job satisfaction score of 100% with twenty-one 5-star reviews from his Upwork clients. Yousaf earned certifications in Google Search and YouTube/Video and holds dual Blueprint certifications in Meta’s planning and buying. Yousaf has also won the Monty McKinney Award for the Institute of Advanced Advertising Studies (IAAS).
During his downtime, Yousaf is the lead moderator for the largest Meta group focused on Blueprint, known as “Facebook Blueprint Certification Prep,” which boasts a membership of over 30,000 individuals.
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