Why automation has become part of the baseline

How to Use Performance Max and Other Automated Formats Effectively

Automation is now a standard in PPC advertising…it not only helps advertisers save time, but it can also identify customers and conversions that would otherwise go unnoticed. Performance Max campaigns (in both Google Ads and Microsoft Ads) represent the most advanced generation of such automated solutions: machine learning optimizes bidding, audiences, and placements across channels for you.

Before we look at specific optimization steps and common mistakes, it is useful to understand what results advertisers are achieving with automation and what alternatives are available to them.

Performance Max is not a standalone “magic tool” that should automatically replace all other formats. It is a supporting component within a range of PPC solutions that together create a functional advertising mix:

• Google Ads P.Max combines performance across Search, Display, YouTube, Gmail, Maps, and other formats within a single campaign.

Source: Search Engine Land

• Microsoft Ads P.Max performs similar optimizations across Microsoft inventory and can be used alongside other campaign types.

Source: Microsoft Ads

In both systems, P.Max therefore represents more of an evolution of campaigns rather than a complete replacement of existing formats.

Google reports that advertisers who deploy Performance Max see, on average, a ~27% increase in conversions or conversion value at a similar cost per action (CPA or ROAS) compared to previous campaigns.

Advertisers who enable Final URL Expansion see 9% more conversions or conversion value at the same CPA/ROAS.

If P.Max also optimizes for new customer segments, it can lead to an increase in return on ad spend for new customer groups of up to ~5%, with a lower acquisition cost.

These figures are average values based on advertiser experience and reflect performance across different business verticals and objectives.

Many references also show that part of the improvement comes from the fact that P.Max covers a broader cross-channel reach, rather than focusing on a single network or segment.

Microsoft Advertising presents Performance Max as an AI-powered solution, that:

Microsoft does not publish official average percentage improvements comparable to Google Ads. However, several case studies published by Microsoft and its partners show that P.Max campaigns were able to:

While such high-performing examples are not a “typical average,” they confirm that the tool itself can significantly improve performance campaigns when used with clear objectives and the right inputs.

Performance Max is the most versatile format, but that does not mean it is the only solution for every goal. Other automated or semi-automated formats still play an important role:

• Display campaigns – work very well for brand awareness, remarketing, and reaching audiences in the decision-making phase (where users may not convert immediately but can be re-engaged later).
• Search campaigns – still capture intent most precisely through keywords and often deliver strong conversions at a lower CPC for high-intent queries.
• Audience / feed-based campaigns in Microsoft Ads – effectively reach audiences via product feeds or customer segments without the need to run P.Max.

Each of these approaches has its place in a strategy:

A key trend in today’s performance marketing is this: automation does not replace strategy, it extends it.

The greatest benefit of automated campaigns comes when:

In this context, Performance Max campaigns prove to be a useful addition, capable of delivering more conversions and insights that would be difficult to cover manually in an efficient way.

Automated campaigns like P.Max work best where there is sufficient data volume (e.g., e-commerce with many conversions), the goal is to scale performance across multiple channels, and discovering new customer segments is important.

This does not mean that smaller accounts or niche audiences cannot try P.Max – rather, the decision to use it should be based on strategy, not on the automatic assumption that it works the same way for every brand.

…when Automation Truly Makes Sense

In practice, automated campaigns deliver the best results when they are built on high-quality data, a clear product structure, and a well-defined strategy. This is where tools that simplify working with product feeds, segmentation, and cross-platform campaign optimization can significantly help advertisers and agencies.

One such solution is our BlueWinston, a tool from the WinstonBros portfolio, which enables effective automation and optimization of product campaigns in both Google Ads and Microsoft Ads. With BlueWinston, you can:

Thanks to this, you can leverage the benefits of Performance Max and other automated formats without losing visibility into performance and the business logic of your e-commerce store.