Google Ads Performance Max Becomes The New Standard for Smart Shopping and Local Campaigns

Google established a schedule for transitioning Smart Shopping and Local campaigns to Performance Max.

After a launch event, Performance Max will quickly get to be the sole campaign type available to brands conducting Smart Shopping and Local campaigns.

Let’s review the critical updates you should be aware of.

  • Upgrades to the Campaign Commencing in April 2022
  • Transitioning to Performance Max campaigns take place in stages.

Google has launched an easy-to-use one-click interface for marketers to upgrade. This tool enables you to update selected campaigns individually or in bulk. Beginning in June, local campaigns will be eligible to upgrade to Performance Max. If no action is done by July on Smart Shopping or Local campaigns, these will be updated automatically. By September 2022, the automated improvements should be complete.

What Will Be Different With Campaign Upgrades?

Advertising for Performance Max will be based on existing Smart Shopping and Local campaigns setups. This assures that the majority of previous settings will remain unchanged. This is great news for many advertisers.

Performance Max campaigns provide the following enhancements:

  • Additional ad inventory will be now available
  • Additional automation insights
  • Expand advertising inventory throughout Search, Youtube, Discovery, Display, Gmail & Maps.

    Image: Screenshot from, May 2022.

Tips for Getting Performance Max Started

Advertisers seeking greater control over Performance Max upgrades have a few alternatives in addition to one-click or automated upgrades. Rather than employing Google’s one-click tool, you may now develop fresh Performance Max campaigns. These Performance Max campaigns will have accessibility to the content now available to Smart Shopping as well as Local campaigns. If you haven’t tested Performance Max campaigns before, now is the time to do so.

When testing Performance Max campaigns, avoid running them alongside current campaigns that have targeting enabled. Campaigns classified as Performance Max will take precedence over other campaign categories such as Smart Shopping.

Best Practices for Performance Max

Google revised its best practices guidance for Performance Max ads recently.

If you’re unsure where to begin, note the following key points while starting a new campaign.

  1. Expand your asset group with extra creative assets: Additional creatives are necessary to allow Google to combine them automatically into suitable ad forms. This automation enables you to have increased access to accessible ad inventory. It’s critical to remember that each asset category should contain assets that are all tied to a single subject.
  1. Incorporate audience indications that suggest a visitor’s likelihood to convert: In an automated environment, including audience indications is critical for advertising effectiveness. Audience signals aid in the optimisation of campaigns and assist you in acquiring new clients.

  2. Establish an appropriate budget and bid strategy: Finally, your budget and bid approach should be mutually reinforcing. If your daily budget is too low and your goal CPA is set too high, your campaigns’ chances of scaling up are poor.


Additional automation is on the horizon. Advertisers should embrace automation wherever feasible while preserving some degree of control. These layers of control include messaging, bidding, budgeting, and audience segmentation, among others.

In order to get ready for the Performance Max upgrades, make sure you know what the campaign type is and use Google’s tools to have a better understanding of how the transition will function.

Insil is a boutique Australian Marketing Agency, providing customers with a holistic approach to Design Thinking and Marketing Services
If you’re interested in generating more salesincreasing traffic and attracting higher quality leads, sign-up to receive a free, no-obligation strategy session TODAY

Get in Touch

Sign up for our Newsletter

Sign up to receive great tips, tricks and updates on the latest Marketing, Sales & Software solutions. 

Scroll to Top