Google has added new AI-driven features to its Performance Max campaigns, a game-changer for businesses to enhance their advertising campaigns. According to Google, Performance Max campaigns drove 17% higher ROAS (Return on AD Spend) than other campaigns during the holiday peak cycle in Q4 2023.
The AI-powered features being rolled out focus on the following campaign elements,
- Asset testing
- Visual creation and video optimization
- Campaign management
These advanced enhancements enable advertisers with tools to optimize campaign management for maximum ROI during high-traffic holiday seasons. For businesses looking to generate high-value conversion and sales, outsourcing to a digital marketing services company is a feasible choice.
What Are Performance Max Campaigns?
Performance Max Campaigns are goal-based, unique campaign types designed to work with Google’s AI for maximizing campaign’s performance across multiple channels such as Search, Display, and Discover. The advantage of Performance Max is that it allows advertisers to access the entire Google Ads inventory from a single campaign. This platform enables companies to expand their potential customer reach based on specific business requirements such as budget, business goals and conversions. The various input asset information given is analyzed to optimize bids using Smart Bidding. By leveraging Google’s real-time optimization and machine learning algorithms, advertisers can unlock new customer segments and increase lead generation.
Key Features of the AI-driven Updates
- New Asset Testing Capabilities
Beginning early November, Google will introduce new experimental tests in beta within the Experiments page. The goal of this new feature is to let retailers gain access to tests that measure the effectiveness of adding supplementary assets such as images, text, and videos to product-feed campaigns. Google also implemented the Final URL expansion testing feature. It allows advertisers to determine the performance of alternate landing pages to select the version with better conversion rates by best matching with user intent.
- AI Image Generation
Google updated image generation capabilities into Google Ads by integrating a version of Imagen 3, their most advanced text-to-image model. This AI system is tuned by leveraging the advertising performance data across industries to create higher-performing visuals for Performance Max, Demand Gen, App, and Display campaigns. With the AI-powered technology, advertisers can optimize creative workflow by generating high-quality images that resonate with users and drive better campaign performance.
- Shareable Previews
Google is introducing the shareable ad previews feature, which allows advertisers to share previews from Performance Max campaigns with product feeds and travel goals. The highlight of this expansion is that anyone can access the ad preview, including users without Google Ads login credentials. With this update, businesses can simplify their creative reviews and approvals process within Performance Max campaigns.
- Video Enhancement Tools
Google has upgraded new video enhancements that allow automated creation of alternate versions of the existing videos to unblock YouTube inventories and performance opportunities.
- Flip video ads – Automatic new aspect ratio adaptation for YouTube’s diverse formats from the original video format while preserving the key elements of the video.
- Shorten video ads – Creates smart short videos by selecting key moments from the videos to retain the original message and appearance.
- Quality evaluation – All AI-enhanced videos roll out only after undergoing extensive quality evaluation for approval.
- Granular control – Advertisers have the option to customize this feature for enhanced ad quality at various levels:
- Performance Max – Remove unwanted enhanced videos or disable this feature via the asset reporting tab.
- Video Action campaigns – Disable video enhancements from campaign settings.
- Demand Gen campaigns – As only flipping capabilities are available in Demand Gen at this time, opt-out of video enhancements at the video ad-level (shortening capabilities to be available in 2025).
- App campaigns – Disable this feature in the Google account manager.
- Manage Performance Max and Standard Shopping Campaigns Together
Google has also restructured how Performance Max and Standard Shopping campaigns work together. When Performance Max and Standard Shopping campaigns run together, Google no longer automatically prioritizes Performance Max when both campaigns are in the same account. A new system called Ad rank is introduced instead, which will determine what campaign is relevant based on their performance when both campaign types target the same products within the same account.
Looking Ahead
Google has revealed the AI-powered updates to Performance Max campaigns strategically for businesses to maximize their advertising efforts and conversions at the peak seasonal traffic. This data-driven approach to online advertising streamlines the campaign strategies for boosted conversion value and maximize return on investment. Companies can take their digital advertising efforts to the next level by outsourcing to a provider of digital marketing services and realize their specific business goals within a defined timeframe.
