Google has unveiled significant updates to Performance Max (PMax), backed by impressive results showing 17% higher ROAS compared to AI-powered social campaigns in Q4 2023, according to MMMs run by TransUnion among Retail & Consumer Electronics advertisers in the U.S.
New Asset Experiments and AI Generation
A new experiments feature is rolling out to the Experiments page in early November, allowing retailers to measure the impact of adding images, text, and video assets beyond their product feed. Advertisers can also test Final URL expansion to determine if dynamic landing page selection improves performance by better matching user search intent.
Google is upgrading its image generation capabilities with Imagen 3, their most advanced text-to-image model. This AI system is specifically tuned with ads performance data to create higher-performing visuals for Performance Max, Demand Gen, App, and Display campaigns.
The platform is also expanding its shareable ad previews feature to include Performance Max campaigns with product feeds and travel goals. These previews can be accessed without a Google Ads login, streamlining creative review processes.
Video Enhancement Capabilities
New AI-powered video features are now rolling out, offering automatic enhancement options:
- Video Flipping: Automatically adapts original videos to new aspect ratios while preserving key elements
- Video Shortening: Creates condensed versions of ads while maintaining core messaging
- Quality Control: All enhanced videos undergo extensive quality evaluation before approval
- Customizable Controls: Advertisers can opt out of enhancements at various levels:
- Performance Max: Remove specific enhanced videos via asset reporting
- Video Action campaigns: Disable enhancements in campaign settings
- Demand Gen campaigns: Opt out at video ad-level (shortening coming in 2025)
- App campaigns: Feature can be disabled through Google account managers
Shopping Campaign Management Updates
A significant change is coming to the interaction between Performance Max and Standard Shopping campaigns. Performance Max will no longer automatically take priority when campaigns target the same products within the same account. Instead, Ad Rank will determine which campaign serves an ad, aligning with how Performance Max interacts with other campaign types like Demand Gen.
These updates arrive strategically as advertisers prepare for the peak holiday season, where AI capabilities become crucial for adapting to rapidly shifting demand and trends.
