Performance Max Best Practices: 10 Tips to Maximise Your Results

Did you know that businesses using Google Performance Max often see up to 40% more conversions than those who don't optimize properly?

Performance Max (PMAX) campaigns are powerful, but only if you use the right strategies. If you're running PMAX for a local business - think coffee shops, hair salons, or fitness studios - ignoring these best practices is like trying to drive a car without a steering wheel.

Let's get you back on the road. Here are 10 performance max best practices to maximise your results.

1. Start With a Solid Campaign Structure

Google Performance Max campaigns are designed to be all-in-one solutions, but that doesn't mean you can skip the basics. You still need a clear structure to guide your strategy.

Define Your Campaign Goals

• Brand awareness
• Store visits
• Lead generation
• Sales

Set up your campaign with one clear goal in mind. Don't try to do it all at once - pick one and measure your success from there.

Use Conversion Actions

Set up conversion tracking to understand what's working and what's not. For local businesses, common conversions include:

• Store visits
• Form submissions
• Phone call durations
• Website purchases

These should be your primary conversion actions in PMAX.

Split by Location or Audience

If you own multiple locations, split your PMAX campaigns by store. If not, use audience-based splits. For example, run a campaign targeting people who've visited your site (retargeting) and another for new visitors.

2. Prioritise High-Intent Keywords

Even though PMAX is automated, it still uses keywords to serve your ads. That means you should include high-intent keywords to improve targeting.

Use Keyword Planner

Find high-intent keywords related to your business. For example, if you're a hair salon, words like "haircut near me" or "best stylist in [city]" are great.

Group Keywords by Intent

• Awareness: "hair salons near me"
• Consideration: "best hair salon for curly hair"
• Purchase: "book a stylist now"

Use these groupings to help Google understand the intent behind each search.

Don't Overload the Campaign

Stick to 30-50 high-intent keywords max. Too many will dilute your campaign's focus and reduce performance.

3. Leverage Audience Targeting for Local Reach

Performance Max is great at reaching the right people, but you can boost local results by setting up smart audience rules.

Use Custom Audience Segments

Create audiences based on:

• People who visited your Google Business Profile
• Users who viewed your website but didn't convert
• People who searched for similar services in your area

You can build these audiences using Google Analytics and Google Ads.

Add Demographic Filters

Target users based on age, gender, and income level if it makes sense for your business. For example, a fitness studio might target people aged 25-45 with higher-than-average income.

Use Location Targeting

Make sure your campaign is only targeting your local area. If you're a coffee shop, you don't need to waste budget on people 100 miles away.

4. Create Compelling Ad Content

Even though Google Performance Max automates much of ad creation, you still need to provide strong content to guide it.

Use Multiple Ad Variations

Upload at least 5 different headlines, 5 ads, and 3 videos. The more content you give Google, the better it can test and optimise.

Include Local Language and Offers

Add phrases like "near me," "book now," or "local experts" to your ad copy. If you have a promotion or limited-time offer, highlight that in your ads.

Keep It Visual

Google uses images and videos to show your ads across platforms like YouTube, Google Maps, and Gmail. Include at least 10 high-quality images and 2 videos to cover all formats.

5. Set the Right Bidding Strategy

Performance Max uses automated bidding, but you should still set smart budgets and bid strategies to get the most out of your spend.

Start With a Smart Bidding Strategy

Use Target CPA or Target ROAS, depending on your goal. If you're trying to get more store visits, start with a Target CPA of $50-$100, depending on your average visit value.

Set a Realistic Budget

If you're just starting out, try a daily budget of $20-$50. Once you see good results, increase the budget slowly to test scalability.

Monitor and Adjust Bids Weekly

Performance Max campaigns will optimise on their own, but you should still review bid strategies every week and adjust if needed. If conversion rates drop, consider lowering the bid. If they improve, raise it.

6. Focus on Landing Page Relevance

Your Google Ads budget is only part of the equation. If your landing page isn't set up for conversions, your PMAX campaign won't perform well.

Create a Dedicated Landing Page

Avoid sending visitors to your homepage. Instead, create a landing page with a clear call-to-action. For a coffee shop, that might be a "Book a Table" or "Order Online" button.

Match Ad Message to Landing Page

If your ad says "Book a Free Consultation," your landing page should have a form for scheduling consultations.

Optimise for Mobile

Over 70% of local searches happen on mobile. Make sure your landing page is mobile-friendly, loads quickly, and has a clear contact method.

Need help setting this up? Check out our guide on cross-channel retargeting.

7. Use Smart Bidding with Performance Max

Smart bidding is the heart of Performance Max. Done right, it can boost your ROI. Done wrong? It can waste your budget.

Choose the Right Goal

• Conversion-based: Use Target CPA or Target ROAS
• Impression-based: Use Target Impression Share

For local businesses, conversion-based goals are usually the best.

Test Different Bidding Strategies

If you're unsure which strategy to use, test a few and compare results over time. Use 2-4 different campaigns with different bidding strategies and see which gives the best ROI.

Monitor for Fraud and Invalid Clicks

Google Ads has tools to help detect fraud, but you should still watch for high click-through rates with low conversion rates. This could indicate fake traffic.

8. Leverage Google Business Profile Integration

Performance Max works best when it's integrated with your Google Business Profile (GBP). This helps you show up in more places like Google Maps and local search.

Make Sure Your GBP is Optimised

• Use a consistent name, address, and phone number
• Add high-quality photos
• Add services and categories
• Get reviews from real customers

Track GBP Performance

Use Google Business Profile insights to see how many people are finding your business through search, maps, and calls. Use that data to optimise your PMAX campaigns.

Need help with GBP? Learn how to optimise yours here.

9. Use Audience Insights to Refine Campaigns

Google Ads provides a ton of audience data. Use it to refine your Performance Max campaigns.

Analyse Audience Demographics

See which age groups, genders, and income levels are converting the most. Adjust your targeting to focus on those segments.

Identify High-Value Locations

Use location insights to see where your best customers are. If you notice a lot of conversions from one city, consider boosting bids for that area.

Use Competitor Insights

See who's searching for similar keywords and when. This can help you adjust your ad scheduling and budget.

10. Run A/B Testing with Multiple Performance Max Campaigns

Even though Performance Max is automated, different versions of the same campaign can perform very differently.

Test Different Goals

Run one campaign aimed at conversions and another aimed at store visits. Compare the results to see what works best.

Test Different Audiences

Try one campaign targeting new users and another targeting people who have already visited your site.

Test Bidding Strategies

Run campaigns with different bidding strategies and see which gives the best ROI.

Frequently Asked Questions

Is Google Ads worth it for small businesses?

Yes, if done correctly. Google Ads can help local businesses get more visibility and drive conversions. Just make sure you set realistic goals and monitor your campaigns closely.

Is $10 a day enough for Google Ads?

It can be, but it depends on your industry and goals. For small local businesses with lower cost-per-click industries (like fitness or local services), $10/day can get you decent results. Use a Performance Max campaign and track conversions to make the most of it.

Is $100 enough for Google Ads?

$100/day is a solid starting point for most small businesses. It gives you enough budget to test different audiences, keywords, and ad content. Just don't expect instant results - let the campaign run for at least 2-3 weeks before making big changes.

Is $20 a day good for Google Ads?

$20/day is a good budget for small businesses just starting with Google Ads. It gives you room to test different strategies and collect data without breaking the bank.

How much should a small business spend on Google Ads?

There's no one-size-fits-all answer. It depends on your industry, competition, and goals. Start with $10-$20/day and scale based on performance. If you're seeing good ROI, increase your budget gradually.

Ready to Boost Your Google Performance Max Campaigns?

Performance Max is a powerful tool for local businesses, but it's not a magic button. It takes strategy, testing, and optimisation to get the most out of it.

If you're struggling to get results from your PMAX campaigns, our team at DataLatte can help. We specialise in helping local businesses like yours run effective Google Ads, local SEO, and retargeting campaigns. Let's turn your ads into real customers.

Get in touch with us today and let's take your marketing to the next level.