Advertising intermediate 45-60 minutes

How to Build a Performance Max Campaign Strategy

Learn how to master Google’s AI-driven Performance Max campaigns to drive more leads and sales for your Australian business.

Michael 28 January 2026

Performance Max (PMax) is Google’s most powerful automated campaign type, allowing you to access all of Google’s advertising inventory—from Search and Shopping to YouTube and Maps—from a single campaign. For Australian small businesses, this matters because it uses Google’s advanced AI to find your customers wherever they are, significantly reducing the time spent on manual keyword management while focusing on what actually matters: conversions.

Prerequisites: What You’ll Need Before Starting

Before you dive into the Google Ads dashboard, ensure you have the following ready:

  • A Google Ads Account: Active and in good standing.
  • Conversion Tracking: This is non-negotiable. PMax relies on data; if your conversion tracking (e.g., GA4 or Google Ads pixel) isn't working, the AI will fail.
  • High-Quality Creative Assets: You’ll need at least 5-10 headlines, 4nd-5 descriptions, 15+ images, and at least one video.
  • A Clear Budget: PMax works best with a daily budget that is at least 10x your target Cost Per Acquisition (CPA).

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Step 1: Define Your Conversion Goals

Performance Max is a goal-based campaign. Before clicking a single button, decide exactly what you want to achieve. Are you looking for online sales, phone calls, or physical store visits to your Brisbane shopfront?

What you should see: In the Google Ads dashboard, click the '+' button to create a new campaign. You will see a screen titled "Select the goal that would make this campaign successful for you." Pro Tip: Stick to one primary goal (e.g., 'Purchases' or 'Lead forms') to help the algorithm focus its efforts.

Step 2: Select the Performance Max Campaign Type

Once your goal is set, choose 'Performance Max' from the campaign type list. Unlike Standard Search or Display, this campaign will automatically distribute your ads across the entire Google ecosystem.

Step 3: Set Your Budget and Bidding Strategy

In the Australian market, competition can be fierce. Start with a daily budget you are comfortable with, but remember that PMax requires a 'learning phase' of about 2-3 weeks.

  • Bidding: Choose 'Maximize Conversions' if you are new to the platform. If you have historical data and a specific target in mind, you can set a 'Target CPA' (Cost Per Acquisition).

Warning: Avoid setting your Target CPA too low initially. If the AI can't find conversions at your price point, it will stop spending your budget entirely.

Step 4: Configure Campaign Settings (Location & Language)

Targeting is crucial for local businesses. In the 'Locations' section, don't just select 'Australia'. Be specific. If you only serve South East Queensland, select 'Brisbane' and surrounding regions.

What you should see: A map interface allowing you to enter specific postcodes or cities. Ensure 'Presence' is selected rather than 'Presence or Interest' if you only want to reach people actually located in your service area.

Step 5: Enable Final URL Expansion

By default, Google will send traffic to the URL you provide. However, 'Final URL Expansion' allows Google's AI to find other relevant pages on your website that might match a user's search query.

Common Mistake: Forgetting to exclude irrelevant pages. Make sure to exclude your 'Privacy Policy', 'Terms and Conditions', or 'Blog' pages from being used as landing pages.

Step 6: Build Your First Asset Group

An 'Asset Group' is the heart of your PMax campaign. Think of it as a folder containing all the ingredients Google needs to bake your ads.

  • Images: Upload up to 20 high-quality images. Use a mix of landscape (1.91:1) and square (1:1) formats. Avoid heavy text on images.
  • Logos: Ensure your logo is clear and follows the square/landscape requirements.
  • Videos: If you don’t upload a video, Google will automatically create one using your images. These are often poor quality. We highly recommend creating a simple 15-second vertical or horizontal video to maintain brand control.

Step 7: Craft Compelling Headlines and Descriptions

Write headlines that focus on benefits, not just features. For example, instead of "Plumbing Services," try "Emergency Plumber Brisbane - 24/7 Support."

  • Headlines: Up to 15 (min 3-5).
  • Long Headlines: Up to 5.
  • Descriptions: Up to 5.
What you should see: On the right side of the screen, Google provides an 'Ad Strength' indicator. Aim for 'Good' or 'Excellent'.

Step 8: Define Your Audience Signals

This is the most critical step for Australian SMEs. An 'Audience Signal' tells Google: "This is the type of person I think is most likely to buy."

  • Custom Segments: Use keywords your customers search for (e.g., "best digital marketing agency Brisbane").
  • Your Data: Upload your customer email list (if you have over 1,000 users) or target visitors to your website.
  • Interests: Select relevant categories like "Small Business Owners" or "Home Improvement Enthusiasts."

Step 9: Add Ad Extensions (Assets)

Extensions make your ad larger and more useful. In Australia, mobile search is dominant, so ensure you add:

  • Sitelinks: Links to specific pages like 'About Us' or 'Services'.
  • Call Extensions: Your Australian phone number so customers can click-to-call.
  • Location Extensions: Link your Google Business Profile so your Brisbane address shows up on Maps.

Step 10: Review and Launch

On the final summary page, check for any errors. Google will highlight missing assets or budget issues. Once satisfied, hit 'Publish Campaign'.

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Pro Tips for Success

  • The 14-Day Rule: Performance Max uses machine learning. Do not touch the campaign for the first 14 days. Every change you make resets the learning phase.
  • Negative Keywords: You cannot add negative keywords directly to PMax campaigns in the standard interface. You must contact Google Support or use a 'Negative Keyword List' at the account level to prevent your ads from showing for irrelevant terms.
  • Check the 'Insights' Tab: This is a goldmine. It tells you which search themes are driving conversions and which audiences are performing best.

Troubleshooting Common Issues

  • Low Spend: If your campaign isn't spending, your Target CPA might be too restrictive, or your Audience Signals might be too narrow. Try increasing your CPA or removing some targeting layers.
  • Poor Lead Quality: If you are getting 'spam' leads, check your 'Location' settings (ensure 'Presence' is selected) and consider adding a reCAPTCHA to your website forms.
  • Ad Strength is 'Poor': This usually means you haven't provided enough variety in your headlines or images. Add more unique selling points (USPs) to improve the score.

Next Steps

Building the campaign is just the beginning. Once your PMax campaign has been running for a month, you should:

  • Analyse the 'Asset Detail' report to see which images are 'Low' performing and replace them.
  • Review your 'Search Term Insights' to see if you need to exclude certain themes.
  • If you need professional help auditing your campaign performance, contact the experts at Local Marketing Group.

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