Google Announces Updated Timeline for the Rollout of Performance Max

Today, Google shared an important update on the rollout of Performance Max, including new details about the upgrade process for Smart Shopping and Local Shopping campaigns, as well as an estimated timeline for when we can expect these changes to take place.

Catch Up Quick: In November 2021, Google announced Performance Max campaigns will become the next generation of Smart Shopping and Local campaigns, with both upgrading to Performance Max in 2022. Performance Max will offer the same “foundational features, while adding brand new inventory and automation insights” to help advertisers achieve increased scale and access to improved automation.

From July through September of this year, Smart Shopping campaigns will automatically upgrade for advertisers, with Local campaigns upgrading from August through September. Once the automated transition occurs for existing campaigns, advertisers will no longer be able to create new Smart Shopping or Local campaigns in Google Ads. 

While Product Listing Ads (PLAs) will still be available after the Performance Max rollout, those who don’t adopt Performance Max campaigns before Q4 will be at a strategic disadvantage, which can include higher CPCs and limited scale. 

Image by Google

Beginning this April, advertisers can upgrade their Smart Shopping campaigns to Performance Max using a one-click tool within Google Ads to help seamlessly transition campaigns into the new format while providing access to new inventory and formats across YouTube, Google Search text ads, and Discover. Advertisers will be able to upgrade their Local campaigns with the one-click tool starting in June. 

According to Google, learnings from existing campaigns will be used in the new Performance Max campaigns to maintain consistent performance during this process. In early tests, advertisers who upgraded from Smart Shopping campaigns to Performance Max saw an “average increase of 12 percent in conversion value at the same or better return-on-ad-spend (ROAS).” Though it’s important to note that this is in addition to gains seen from advertisers migrating from Product Listing Ads (PLAs) to Smart Shopping campaigns. Additionally, it’s a possibility that more sophisticated advertisers with robust campaigns serving across inventory types may not see the same results. 

“It’s of the utmost importance that advertisers test into Performance Max prior to the auto migration later this year to ensure they have a sound SEM strategy and solid understanding of this new campaign type,” said Jason Hartley, head of search, shopping and social at PMG. “For advertisers who utilize third-party bid management platforms, Performance Max campaigns are currently not supported, but we’re hopeful access will be available soon.” 

To help advertisers ease into this transition, Google recommends new campaigns should be launched as Performance Max campaigns, offering a great way to learn more about the campaign type functionality for those who are eager to jump in and familiarize themselves before the transition period begins.

In the months to come, PMG will be working closely with our Google partners to make the upgrade process as smooth as possible while preparing client accounts with testing and adoption strategies to stay ahead of the competition.

To learn more about Performance Max, we recommend attending Google’s webinar on February 22, 2022 that will share best practices for creating Performance Max campaigns.