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.
Google ADS Search
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:
(Here you can include visuals or a diagram showing placements across Google Search, YouTube, Maps, Display Network, etc.)
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.
What is AI Max and how does it fit into this comparison?
In May 2025, Google launched AI Max — a new suite of features built directly into Search campaigns. It's not a new campaign type, but a set of three AI-powered features you can enable with a single click in your existing Search campaign settings.
AI Max does three things:
- Expands reach — shows your ads for queries your keywords don't directly cover, but where user intent is relevant
- Automatically optimises ad copy — generates headlines and descriptions based on your landing page content and the current search query
- Optimises URLs — directs users to the most relevant page on your website
According to Google data, advertisers who enable AI Max typically see a 14% increase in conversions at a similar cost. For campaigns still relying heavily on exact and phrase match keywords, the uplift can be as high as 27%.
How is AI Max different from PMax?
This is a question many advertisers are grappling with right now. The simple answer:
- PMax = automation across all Google networks (YouTube, Gmail, Display, Search, Maps)
- AI Max = a smarter Search campaign — you stay in Search, but with expanded reach and AI assistance
While PMax focuses on maximum reach across the entire Google network, AI Max centres on intelligent Search coverage using so-called Search Themes — topics the AI uses to match ads to user intent even without an exact keyword match.
Search, PMax or AI Max?
If you're targeting direct lead generation or sales with a clearly defined audience intent, use Search campaigns. Regular keyword and query reviews combined with ongoing ad copy optimisation are the foundation of their effectiveness.
If you're looking for efficient, broader reach, don't know exactly what your potential audience is searching for, want to reach competitors' customers and build brand awareness — PMax campaigns are the right fit for a wider-funnel marketing strategy.
Want the best of both worlds without losing control? Try AI Max.
AI Max isn't a new campaign type — it's a feature set you enable with one click inside your existing Search campaign. Google AI expands the reach of your keywords to relevant queries you'd otherwise miss, automatically adapts ad copy, and directs users to the most relevant page on your site. You stay in Search, but with smarter reach. According to Google, advertisers enabling AI Max see an average 14% increase in conversions at similar cost.
From our experience working with small and medium-sized businesses, combining PMax with Search campaigns helps effectively optimise budget allocation while increasing brand visibility across all Google channels. Running both campaigns together creates a full-funnel strategy — capturing users who are ready to buy via high-intent search queries, as well as those still in the early research phase across multiple channels.
Which campaign is right for you?
| Search Network | Performance Max | AI Max | |
|---|---|---|---|
| What it is | Text ads in search results | Automation across all Google networks | AI enhancement for Search campaigns |
| Control | High | Low | Medium |
| Where it shows | Search | Search, YouTube, Gmail, Display, Maps | Search + expanded queries |
| Keywords | Yes, manual | No | Optional — AI expands them |
| Best for | B2B, precise targeting, smaller budgets | E-commerce, branding, larger budgets | Campaigns with solid conversion tracking |
| Management effort | Medium | Higher | Low |
| When to use | When you need control and precise targeting | When you want maximum reach across all channels | When you want PMax benefits while staying in Search |
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.
FAQ
What is the difference between Search and Performance Max campaigns?
Search campaigns target specific keywords in Search, while Performance Max uses AI to serve ads across Google's entire inventory (YouTube, Gmail, Display).
When should you use a Performance Max campaign?
When you want to maximize conversions and reach users automatically across different stages of the buying process.
Does Performance Max replace traditional Search campaigns?
No, they work best in synergy - Search campaigns capture specific queries while PMax expands your reach.
What is AI Max and how does it differ from PMax? AI Max is not a standalone campaign — it's a suite of AI-powered features for existing Search campaigns. While PMax shows ads across all Google networks, AI Max stays in Search but expands reach to relevant queries your keywords don't directly cover.
Is it worth enabling AI Max? For most advertisers, yes — especially if you have conversion tracking properly set up. According to Google data, it delivers an average 14% increase in conversions at similar cost. We recommend testing it using the built-in A/B experiment feature in Google Ads.
