07 Nov Understanding Performance Max – and Why It’s Crucial for Your Automotive PPC Strategy

Google recently announced a new campaign type called Performance Max that automotive dealers need to understand. As Google continues phasing out Expanded Text Ads in favor of Responsive Search Ads, Performance Max represents the next evolution in automotive PPC. In this post, we’ll explain what Performance Max is, how it works, and most importantly – why you need to incorporate it into your pay-per-click strategy if you want to stay ahead of the competition and maximize ROI.

What is Performance Max?

Performance Max campaigns are Google’s latest machine learning-driven solution for highly automated advertising. The concept combines the best of search and display ads across all devices into a single highly optimized campaign. Here’s how it works: Google’s artificial intelligence analyzes your business goals, historical campaign data, and high-value audiences to automatically serve ads in the locations and contexts where they are most likely to drive conversions and sales. Performance Max campaigns utilize Responsive Search Ads on Google Search and Responsive Display Ads on the Google Display Network. The AI-generated ad messaging dynamically adapts in real-time based on what content is resonating best with your target audience.

The Benefits of Performance Max for Automotive Dealers

There are several key reasons why Performance Max should be a major component of your dealership’s PPC strategy:

• Simplified Campaign Structure – Everything is contained within one campaign type instead of managing search, display, shopping, etc. separately.
• Automated Optimization & Adaptation – Google AI handles the ongoing tests and tweaks to maximize results.
• Improved ROI – The machine learning focuses budget on highest performing ads and targets for your goals.
• Expanded Reach – Your ads can show across more sites, formats and devices to increase visibility.
• Seamless Mobile Experience – Responsive ads adjust for optimal visibility on smartphones and tablets.

How to Utilize Performance Max Effectively

Here are some tips to implement Performance Max the right way for your dealership PPC campaigns:

• Set Specific Goals – Be sure to establish clear goals for sales, leads, site traffic, etc. so Google can optimize towards them.
• Use Audience Targeting – Layer on demographic, geographic, behavioral and custom intent audiences.
• Monitor Closely At First – Check performance daily initially to ensure the AI optimization is driving results.
• Let the AI Do Its Thing – Avoid excessive manual bid adjustments and limit targeting changes to let the algorithms work.
• Watch Trends – Look for upward/downward trajectory identification of high-performing elements.

The Bottom Line

Performance Max represents the next generation of automated marketing from Google. Dealers who want to maximize their advertising ROI through machine learning need to embrace this new campaign type. The key is properly configuring your Performance Max campaigns for your specific dealership goals and then leveraging Google’s AI capabilities to drive results. As the platform continues advancing, Performance Max is only going to get smarter. For any questions on implementing Performance Max or optimizing your dealership’s PPC strategy, contact the automotive digital marketing experts at LocalDealer.com. To learn more Schedule a Demo here.