Performance Max (PMax) is Google’s powerhouse automated campaign type, designed to help you reach customers across YouTube, Display, Search, Discover, Gmail, and Maps from a single campaign. For Australian small businesses, it offers a way to leverage Google’s advanced AI to find high-value customers without needing to manage six different campaign types manually.
However, because PMax is so automated, it is easy to get wrong. If you don't provide the right data, Google's AI can spend your budget on low-quality traffic. This guide will show you how to set up a PMax campaign with the guardrails necessary to ensure a high Return on Ad Spend (ROAS).
Prerequisites
Before you begin, ensure you have the following ready:- A Google Ads Account: With an active payment method.
- Conversion Tracking: This is non-negotiable. PMax relies on data; if you aren't tracking leads or sales accurately, the campaign will fail.
- High-Quality Creative Assets: You’ll need at least 5-10 images, your logo, and ideally at least one 10-second (or longer) video.
- Audience Signals: A list of your current customers or a list of keywords your customers search for.
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Step 1: Start a New Campaign
Log into your Google Ads account. Click the blue plus (+) button and select + New campaign. What you’ll see: A screen asking for your campaign objective. For most Australian service businesses, select Leads. For e-commerce stores, select Sales. Avoid selecting "Create a campaign without a goal's guidance" unless you are an advanced user, as this disables some of the AI optimisations PMax uses.Step 2: Select Performance Max & Set Conversion Goals
On the next screen, choose Performance Max as your campaign type.Below this, you will see your conversion goals. Ensure only the most important actions are listed (e.g., "Submit lead form" or "Purchase"). If you see "Page views" or "Directions" as a primary goal here, remove them from this specific campaign. You want the AI to focus on the actions that actually put money in your bank account.
Step 3: Budget and Bidding
Enter your daily budget. For Australian businesses in competitive niches (like plumbing or legal services), we recommend starting with at least $30–$50 per day to give the algorithm enough data to learn. Bidding Strategy:- If you are a new account, start with Maximize Conversions.
- If you have historical data, you can set a Target CPA (Cost Per Acquisition).
Pro Tip: Don't set your Target CPA too low initially. If your average lead costs $50, setting a target of $10 will result in Google not showing your ads at all.
Step 4: Campaign Settings (Location & Language)
Under Locations, select "Enter another location" and type in your specific service area (e.g., "Brisbane, Queensland" or a 20km radius around your shop). Crucial Setting: Click on Location Options. Change the selection from "Presence or interest" to "Presence: People in or regularly in your targeted locations". This prevents your ads from showing to people overseas who are just searching for information about Brisbane.Set your language to English.
Step 5: Final URL Expansion
This is a "hidden" setting that can make or break your budget. By default, Google will send traffic to any page on your website it deems relevant.- Recommendation: Leave it ON, but use the Exclusions feature to prevent Google from sending paid traffic to your Privacy Policy, Terms and Conditions, or Blog pages. You want them on your landing pages or service pages.
Step 6: Build Your Asset Group
This is where you provide the "building blocks" for your ads. Google will mix and match these to create ads for different platforms.- Images: Upload up to 20 images. Use a mix of landscape (1.91:1) and square (1:1). Use real photos of your Australian team or projects rather than generic stock photos.
- Logos: Upload your square and landscape logos.
- Videos: If you don't provide one, Google will create a generic slideshow video for you—and they are usually quite poor. Try to upload a simple 15-second video shot on an iPhone; it performs better than a robotic slideshow.
Step 7: Craft Compelling Copy
You need to provide:- 5 Headlines (30 characters each)
- 5 Long Headlines (90 characters each)
- 5 Descriptions
Step 8: Add Audience Signals
This is the most important step for "steering" the AI. Click Add an audience signal.Don't just select broad interests like "Real Estate." Instead:
- Custom Intent: Create a list of the top 10-15 keywords people use to find you.
- Customer Lists: Upload your CSV of past customer emails (hashed for privacy).
- Website Visitors: Target people who have previously visited your site.
Step 9: Use Ad Extensions (Assets)
Extensions make your ad larger and more clickable. At a minimum, add:- Sitelinks: Links to other pages (e.g., "Our Services," "Contact Us," "Gallery").
- Callouts: Short snippets like "Free Quotes," "ABN Registered," or "24/7 Emergency Service."
- Call Assets: Add your Australian phone number so people can click-to-call directly from the ad.
Step 10: Review and Launch
Review your settings. Google will likely give you an "Optimization Score." Take this with a grain of salt—Google often suggests things that increase your spend but not necessarily your profit. Check your location settings one last time, then hit Publish Campaign.---
Common Mistakes to Avoid
- The "Set and Forget" Trap: PMax takes about 2-4 weeks to "learn." Don't make any changes during this period, or you will reset the learning phase.
- Low-Quality Images: If your images look like spam, people won't click. Invest in professional photography of your local business.
- Ignoring Negative Keywords: PMax doesn't allow you to add negative keywords easily within the interface. You must contact Google Support or use a "Negative Keyword List" at the account level to prevent your ads from showing for "jobs" or "free" searches.
Troubleshooting
- Zero Impressions: Check if your budget is too low or your Target CPA is too restrictive. Also, ensure your conversion actions are verified.
- High Spend, No Leads: Check your "Final URL Expansion." Google might be sending people to your "About Us" page instead of a high-converting landing page. Turn off URL expansion or add exclusions.
- Poor Lead Quality: This usually happens when you don't have enough Audience Signals. Refine your Custom Intent keywords to be more specific (e.g., change "Plumber" to "Emergency Hot Water Repair Brisbane").
Next Steps
Once your campaign has been running for 30 days, it's time to look at the Insights tab. This will tell you which search terms are driving conversions and which assets are performing the best. Use this data to swap out low-performing images or headlines.Need help scaling your Google Ads? Our team at Local Marketing Group specialises in helping Australian businesses dominate their local market. Contact us today for a strategy session.