In the ever-evolving world of online advertising, Google Ads remains a cornerstone for driving business growth.
However, deciding which campaign type to choose often leaves business owners and marketing managers uncertain.
Should you take advantage of AI-powered Performance Max campaigns, or rely on the proven effectiveness of traditional Search campaigns?
In this article, we’ll help you understand how both approaches work, outline their advantages, and show you how to get the most out of your advertising budget.
Search Campaigns
Search campaigns are the foundation of Google Ads.
They are keyword-based and appear directly in Google Search results. These text ads aim to deliver targeted messages — answers to what potential customers are actively searching for.
With Search campaigns, you have full control over who sees your ads and how they appear. You can manage everything manually — from keywords and ad copy to bidding strategies.
In recent years, Search campaigns have evolved significantly. Machine learning mechanisms now make it possible to achieve better performance even within traditional setups.
These changes primarily affect bidding strategies.
Smart bidding focused on conversions helps identify the value of individual clicks and target users who are more likely to convert.
An example of how Smart Bidding uses signals in a Search campaign for one of our clients:
Search Ads and How They Appear in Google Search
Ad texts appear above organic search results. The overall look of Google Search has changed significantly in recent years — results no longer consist of plain text links only.
They now include logos and image previews taken directly from the website’s content.
This innovation naturally extends to advertising as well.
In addition to text, search ads can now display the advertiser’s logo and relevant images, depending on the search context and the type of device used.
In our campaigns, we use responsive search ads.
In practice, this means we provide several headlines (up to 10) and multiple descriptions (up to 5), from which Google’s system automatically generates ad combinations.
Through machine learning, Google selects the combinations most relevant to each search query and prioritises those with the best performance.
Examples of Search Ad Display
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What is a Performance Max (PMax) campaign?
Performance Max is a new type of Google Ads campaign that leverages the power of machine learning and automation.
What makes PMax unique is its comprehensive, cross-channel approach, unlike standard Search campaigns.
It uses smart bidding strategies and a variety of ad formats across all Google properties — including Search, Maps, Gmail, YouTube, Discovery, and the Display Network.
The main advantage lies in its ability to optimise ad placement using audience signals and machine learning, offering greater reach and performance than manual campaigns could typically achieve.
Example of using audience signals for a client promoting green roof installations:
With PMax campaigns, we can reach audiences actively interested in green roof solutions — those who search for related information, visit industry websites, read expert articles, or explore competitor pages.
PMax also includes remarketing, ensuring that besides reaching new relevant audiences, the campaigns also help reinforce brand awareness and re-engage previous visitors.
We reach these audiences through visual display ads, which appear across all Google networks.
Where Performance Max ads appear:
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PMax ads can appear across various Google channels, and their appearance may differ significantly from traditional text-based search ads — depending on the platform.
When creating PMax campaigns, we prepare asset groups consisting of multiple headlines, long headlines, descriptions, images, and even videos for use across the Display Network, Gmail, YouTube, and Discovery channels.
Google then uses these assets to automatically generate the most effective combinations for each of its five major advertising networks.
Performance Differences Between Search and PMax Campaigns
PMax campaigns offer the ability to target either new or existing customers, allowing you to tailor your advertising strategy accordingly.
This means you can reach only new users who have never interacted with your brand before, or also include existing users who have previously engaged with your business — through a purchase, website visit, or app usage (remarketing).
Here’s how performance typically compares between Search and PMax campaigns under similar bidding conditions:
- Click-through rate (CTR):
Higher for Search campaigns. This is because PMax ads run across channels (such as Display or YouTube) where CTRs are generally lower. - Average CPC (cost per click):
Usually lower in PMax campaigns, as they have access to a broader and more affordable ad inventory beyond keyword auctions.
PMax also benefits from visual ad placements - even if users don’t click, they see your brand more often, boosting awareness at no extra cost (you only pay for clicks). - Conversions:
Vary by campaign type and targeting settings. PMax often achieves lower conversion rates, but can deliver higher total conversions at a lower cost when combined with remarketing across multiple channels. - Cost per conversion:
Depends on targeting strategy. With refined targeting and remarketing, PMax can achieve similar or even better cost-per-conversion results compared to Search campaigns due to lower CPCs. - Conversion rate:
Search campaigns usually show a higher conversion rate, as they target users with strong intent through specific keywords.
However, PMax can still perform well when targeting broader audiences at different stages of the funnel.
Search or PMax – Which Campaign Type Is Right for You?
If your goal is direct lead generation or sales from users with clear purchase intent, Search campaigns are the way to go.
Regular keyword review, search term analysis, and ad copy optimisation are essential for maintaining performance.
If you aim for broader reach and brand awareness, want to engage potential customers at earlier stages, or target competitor audiences, then PMax campaigns are ideal for top-of-funnel marketing strategies.
Run Both Search and PMax Campaigns Together
Combining both campaign types is often the most effective approach, delivering measurable results.
For small and medium-sized businesses, we’ve found that running PMax alongside Search campaigns helps optimise budget allocation and increase overall brand visibility across Google’s ecosystem.
By launching both campaigns simultaneously, you can cover the entire customer journey —
from users ready to buy (high-intent searches) to those still in the research phase, reached through multiple Google channels.
Conclusion
Both Performance Max and Search campaigns offer distinct advantages suited to different business goals.
Success in Google Ads depends on aligning your campaign type with your objectives.
Whether used independently or in combination, these campaigns are powerful tools in your digital marketing arsenal.
Proper setup, measurement, and ongoing optimisation are key to achieving the best results.
Need help choosing the right strategy?
If you’re unsure how to set up your campaigns or which targeting strategy to use, get in touch with us for a free consultation.
We’ll help you find the right Google Ads approach to grow your business.
