What Google PMAX can (and can't do)?
9 Sept 2025
5 min read

Performance Max (PMAX) is Google's answer to the increasing complexity of digital advertising channels. Instead of managing multiple campaign types simultaneously, PMAX consolidates all placements – from Search to Display to YouTube – into a single setup. Google Shopping is also an integral part of the campaign.
For many advertisers, this offers significant advantages: less manual effort, more automation, broader reach. At the same time, the black-box architecture of PMAX brings new challenges – especially when it comes to strategically managing budgets and evaluating product performance.
In this article, we will show you what PMAX can really achieve, where the limits lie, and how you can tap into the full potential of your campaigns with the right setup – including intelligent segmentation and data analysis.
What Google PMAX Actually Does (and What it Doesn't)
Performance Max is a campaign type that focuses on maximum automation. Instead of setting up separate campaigns for each channel – such as Search, Display, or Shopping – PMAX unites all channels under one roof. The foundation is your product data feed (in the case of e-commerce), combined with creatives, audience signals, and conversion goals.
What PMAX automatically handles:
Bidding strategies (e.g., target ROAS, maximize conversions)
Placement selection (Search, Display, YouTube, Discover, etc.)
Combination and distribution of assets
Targeting audiences through machine learning
What PMAX cannot automatically do:
A differentiated control at the product level
A clear separation of search queries or target audiences
Transparent evaluation of individual channels
Especially in e-commerce, PMAX quickly encounters limits: while many products can be advertised simultaneously, there is a lack of granular control. Which products actually generate revenue? Which ones just burn budget? Without targeted segmentation, many potentials remain untapped.
Google Shopping Tip: To segment, scripts or more user-friendly tools like the Labelizer from Label Up can help. You can find more information here: Custom Labels for Google Shopping |
All Channels at a Glance: Where Your Google PMAX Campaigns are actually displayed
Google Performance Max consolidates various placements into a single campaign type. That’s what makes PMAX so powerful, but also hard to comprehend. To understand how the campaign works, one should first look at the display channels.
Here you get an overview of where your ads can actually be displayed and what that means for your campaign strategy:
1. Google Search
PMAX generates dynamic text ads that appear with relevant search queries – similar to classic search campaigns. However, you have no influence over keywords or ad texts in detail.
2. Google Shopping
A central component for e-commerce. Your products appear in the shopping section of Google search results – based on your product feed. Right here, feed quality plays a crucial role.
3. YouTube
Video ads can be displayed before, during, or after videos. Requirement: You provide corresponding assets (e.g., short clips or animation graphics). Ideal for branding and attention.
4. Google Display Network
PMAX uses the entire Google Display Network to display your ads as banners or responsive ads on websites – scalable, but with potential wastage.
5. Gmail
Your ads also appear in the promotion tab of Gmail – especially in visually prepared formats. This is well suited for sales, newsletter campaigns, or retargeting.
6. Discover Feed
Native ads in the Discover feed (mobile) appear between news and content suggestions. The format is particularly visual and offers high potential for impulse purchases.
7. Maps, Apps & More
In certain cases, local displays (e.g., with location extensions) or ads in third-party apps may also occur – depending on audience and campaign setup.
Important: You cannot directly control where Google places your ads, but through high-quality assets, suitable audience signals, and clean tracking, you can significantly influence performance indirectly.
Challenges with Google PMAX
As powerful as PMAX appears on paper, many advertisers quickly hit limits in practice. The biggest complaint: lack of transparency.
Due to bundled displays across various channels and automated bidding management, it becomes difficult to track which products, placements, or audiences truly contribute to performance. Especially with large product feeds, it becomes almost impossible to sensibly control budget distribution.
A typical scenario: only a small portion of your products accounts for the bulk of your revenue. At the same time, other products continuously draw budget without converting – yet you can hardly identify them in the standard dashboard.
The consequences:
Inefficient budget allocation
Uncertainty about true revenue drivers
Hardly any leeway for strategic optimization
Google Ads Hack: In addition to complex scripts, there are also much simpler labeling tools that can help you tackle these challenges. Label Up offers a user-friendly, clear solution to categorize your products according to your needs.
You can find more about that here: Custom Labels for Google Shopping |
Audience in Google PMAX: How Much Control Is Still Possible?
A common misconception about Google Performance Max: Many assume that they can no longer control audiences. The truth is a bit more nuanced – while you can no longer give Google fixed targetings, you can certainly influence who sees your ads.
The Concept: Audience Signals
Instead of direct targeting, PMAX works with so-called audience signals. These are audience hints that you can provide during campaign setup. They serve as a starting point for Google's machine learning, helping to reach optimal display faster.
What Does This Mean in Practice?
Google uses your signals for initial steering but increasingly relies on its own data. You can no longer set up pure remarketing campaigns; for that, you need to work with separate campaign types.
Audience signals are not mandatory, but highly recommended. Because the better your input, the faster the algorithm learns.
Best Practices for Audience Signals:
Combine broad interest groups with clear remarketing target groups
Use your first-party data from CRM or newsletters
Test different signals in different campaigns
You set the direction – Google takes control. The better your starting signal, the more efficiently the algorithm will work.
Conclusion: What Google PMAX Campaigns deliver
Google Performance Max offers enormous reach, cross-channel display, and data-driven automation – ideal for scalable e-commerce marketing. But this automation also brings challenges: lack of transparency, limited control possibilities, and the risk of inefficient budget allocation.
Those who want to use PMAX successfully must understand where and how Google displays ads – and how the control can be regained with the right tools.