Many advertisers struggle with the balance between Performance Max and search campaigns. Overlap in search terms can lead to inefficiencies, such as higher costs and less relevant ads. By understanding this interaction, you can achieve better results and strengthen your campaigns.
Insight into keyword overlap between pmax and search
The interaction between Performance Max (PMax) and search campaigns can be confusing. Many advertisers wonder whether PMax affects the performance of their search campaigns. Research from Adalysis indicates that there is significant overlap in search terms, which has direct implications for your advertising strategy.
The data shows that 67% of PMax campaigns overlap with search terms in search campaigns. While this may seem like a problem at first glance, the overlap at the level of individual search terms is only 2.8%. Nevertheless, these differences can impact which campaign your ad is shown in and how effectively it performs.
Impact on advertising performance
The priority order of Google determines which campaign activates a search query. Although search campaigns are generally more relevant due to specific ad texts, our research shows that PMax more frequently generates more impressions. For overlapping search terms, PMax had more impressions 61% of the time. This is likely due to a higher Ad Rank, even though search campaigns often perform better in terms of click-through rate (CTR) and conversion rates.
Search campaigns achieved a higher CTR in 65% of cases and a higher conversion rate in 84% of cases. This indicates that search ads are not only more effective at attracting clicks but also convert better into valuable actions.
Strategies to Manage Overlap
To ensure that search campaigns are prioritized for important keywords, it is crucial to add exact match keywords and regularly monitor your search terms. Use the insights from your PMax campaigns to identify missing keywords in your search campaigns.
Another option is to temporarily pause PMax and expand your search and display campaigns based on the collected data. For advertisers whose goal is lead generation, this has proven to be a successful strategy.
Conclusion
While Performance Max can add value, especially for e-commerce, it is often wiser to optimize search campaigns for lead generation. Ensure that your key search terms are prioritized in search campaigns. This results in higher CTRs, better conversion rates, and increased revenue. By making smart use of data and minimizing overlap, you can get the most out of your advertising budget.