Google Ads Showdown: Performance Max vs. Search Campaigns

Table of Contents

If you’ve explored Google Ads, you’ve likely run into the Performance Max vs. Search Campaign debate. Both are powerful but work differently. 👀

Performance Max (PMax) is for advertisers who trust Google’s AI to optimize ads across all platforms, Search, Shopping, Display, YouTube, and more.

Just set a goal, upload assets (headlines, images, audience signals), and let Google handle the rest.

Keep reading to learn about PMax vs. Search Campaigns, their strengths and weaknesses, and how to improve your results with PPC tools!

What is Performance Max?

What is Performance Max?
Via Google Help

Performance Max is Google’s most automated ad campaign type, designed to help businesses reach customers across all Google platforms: Search, Shopping, Display, YouTube, Gmail, Discover, and Maps. 

Instead of manually choosing where your ads appear, you provide assets (headlines, images, videos), set your goals, and let Google’s AI handle the rest.

Originally replacing Smart Shopping in 2022, Performance Max optimizes placements, bidding, and audience targeting using machine learning. It doesn’t rely on keywords but instead analyzes audience signals to find high-converting users.

Search Atlas OTTO Google Ads Blog Banner Ad Automation Launched in Minutes

Performance Max Benefits and Features

Performance Max is built for automation, using AI to optimize bidding, placements, and targeting based on your campaign goals.

  • Goal-Based Optimization: Maximizes conversions based on objectives like sales, leads, or store visits.
  • Automated Bidding & Budgeting: Uses Smart Bidding to adjust bids in real-time for better efficiency.
  • Cross-Channel Reach: Runs ads across Google’s entire network to expand visibility.
  • Asset Groups: Combines images, videos, and text dynamically to test and improve performance.
  • Audience Signals: Uses advertiser-provided data to refine targeting and find high-value users.
  • URL Expansion: Directs traffic to the most relevant pages and adjusts headlines based on intent.

Performance Max Pricing

Performance Max campaigns have an average CPC of $0.68, lower than Google Ads’ $0.85 average. If your CPC is high, it’s worth testing.

Optimized for purchases, Performance Max sees a 1.83% conversion rate, close to the Google Ads average of 1.96%.

Costs vary based on goals, competition, and bidding, but AI-driven optimization helps maximize efficiency.

What is a Search Campaign?

What is a Search Campaign?
Via G2

Google Search Campaigns are keyword-based ads that appear when users search for specific terms on Google. Think of them as a direct response tool, you target people actively looking for what you offer.

Unlike Performance Max, Search Campaigns give you full control over keywords, ad copy, bidding, and targeting. You decide which searches trigger your ads, ensuring they reach high-intent users.

This precision makes Search Campaigns great for businesses that want to capture demand rather than create it. If someone searches for “best dark chocolate gift box,” your ad can appear at the perfect moment, increasing the chance of a click and conversion.

Search Campaign Benefits and Features

Search Campaigns allow advertisers to target users actively searching for specific keywords, giving them full control over bidding, ad copy, and audience targeting:

  • Precise Targeting: Ads appear only when users search for specific keywords you choose.
  • High Intent Traffic: Captures users actively looking for your product or service, increasing conversion potential.
  • Full Control Over Bidding & Keywords: Advertisers set bids and select keywords, allowing for strategic budget allocation.
  • Clear Performance Insights: Analyze keyword performance and optimize campaigns based on real-time data.
  • Ad Creation & Optimization: Google optimizes responsive search ads by testing different headlines and descriptions for better engagement.
  • Reporting & Analytics: Track conversions, keyword effectiveness, and ad schedule performance to refine strategy.

Search Campaign Pricing

Google Search Campaign costs vary by industry, competition, and targeting. In 2025, businesses spend $100–$10,000/month, with search ads averaging $0.11–$0.50 per click and $0.51–$1,000 per 1,000 impressions.

Costs are higher in competitive industries like law and lower in niches like handmade chocolates. Budget efficiency depends on bidding strategy, targeting, and ad relevance.

Performance Max vs. Search Ads: Which Delivers Better ROAS?

Let’s break down the real differences between Performance Max and Search Ads, how they work, where they win, and which drives better results.

Plus, we’ve got a strategy to help you get the best ROAS, no matter which one you choose.

1. Reach and Channels

Reach and Channels
Via Google

Performance Max campaigns leverage multiple Google platforms, including Search, YouTube, Gmail, and Display Network, helping advertisers reach broader audiences by automating ad placements and targeting high-conversion users.

email marketing
Via G2

Search Ads are confined to Google Search results, targeting users who actively search for specific keywords and their keyword intent, which can refine your targeting but limit your reach to those searching with purchase intent.

Winner: Performance Max

Performance Max expands your reach across multiple channels, allowing ads to appear on more platforms for broader exposure and automated optimization.

2. Reporting

Navigation guide
Via Google

Performance Max provides limited reporting, offering broad performance insights without detailed breakdowns of specific platforms or search terms driving conversions, making it harder to pinpoint exactly where results are coming from.

Via Google

Search Ads offer comprehensive reporting, with detailed insights into keyword performance, search terms, ad placements, and conversions, enabling more precise optimization of campaigns based on actual data.

Winner: Search Ads

Search Ads provide full reporting transparency, allowing advertisers to closely track keyword performance and make precise adjustments for better targeting and improved conversions.

3. Asset Types

Performance Max campaigns use multiple asset types, including text, images, and videos. Advertisers upload these assets, and Google’s AI combines them to create optimized ads across various channels.

Search Ads rely solely on text-based assets, where advertisers create targeted headlines and descriptions to match specific keywords and appear in relevant search results.

Winner: Performance Max

Performance Max offers more flexibility with asset types, enabling broader reach and more creative ad formats, unlike Search Ads which are limited to text.

4. Negative Keywords

Performance Max campaigns do not allow for the use of negative keywords. Google’s AI manages targeting automatically, which can limit control over unwanted traffic or irrelevant audience segments.

Search Ads allow advertisers to add negative keywords, placements, topics, and audiences at the campaign or ad group level, providing more control over which searches trigger their ads.

Winner: Search Ads

Search Ads offer more control with negative keyword targeting, helping to refine traffic and reduce wasteful spending.

5. Keyword Targeting

Performance Max uses automated targeting, meaning advertisers don’t have control over specific keywords or placements. Google’s AI determines which search terms and audiences are targeted based on campaign goals.

Search Ads allow for manual keyword targeting, giving advertisers control over keyword bids, audience demographics, and placements. This approach requires more hands-on effort but offers greater customization for experienced marketers.

Winner: No clear winner

Performance Max lacks control over optimal keyword selection, prioritizing Google’s interests. While Search Ads offer more control, they still require manual management.

We’ll share the best solution later.

6. Bidding

Performance Max uses cross-channel smart bidding, automatically optimizing bids across different channels. However, it doesn’t allow for precise targeting, and the campaign tends to require a higher budget compared to search ads.

Search Ads provide multiple bidding options like CPC, CPM, and CPV. Advertisers have full control over their bids and budgets, offering flexibility and the ability to run campaigns with lower budgets than Performance Max.

Winner: Neither of the options

Performance Max prioritizes Google’s strategy, not yours, resulting in less control. While Search Ads allow control, they require considerable manual work. We’ll present an alternative that optimizes for your strategy.

Performance Max vs. Search Campaign: How OTTO Google Ads Enhances Affordability

Search ads demand extensive manual work and expert guidance to find the best strategy, while Performance Max prioritizes Google’s profits over optimal results.

OTTO Google Ads offers a smarter alternative, maximizing your Search Campaigns effortlessly, outperforming Performance Max in every way.

What is OTTO Google Ads?

otto googler ads launch wizard dashboard

OTTO Google Ads, built by Search Atlas, takes the guesswork out of Google Ads. It automatically selects the best keywords, structures your campaigns, and writes high-performing ad copy, giving you better results than Performance Max with none of the wasted spend.

Which Tasks Does OTTO Google Ads Handle for You?

OTTO Google Ads automates campaign setup, keyword selection, and ad creation, ensuring your ads reach the right audience without the manual effort.

otto Google ads approve ads

Unlike Performance Max, which prioritizes Google’s revenue over your success, OTTO focuses on maximizing your ROAS. 💲

How OTTO Google Ads Optimizes Your Ad Strategy

By connecting your website and Google Ads account, OTTO uses advanced AI to refine your campaign structure, improve targeting, and continuously optimize ad performance.

Unlike Performance Max, OTTO gives you full control and transparency while still automating the tedious work.

OTTO Google Ads Pricing

OTTO Google Ads by Search Atlas cuts costs and boosts ROAS, optimizing campaigns efficiently for better results at a lower price than competitors.

Starter planGrowth plan Pro planEnterprise
Price$99 monthly$199 monthly$399 monthlyCustom
Free OTTO SEO Activation113Custom
User Seats235Custom
GSC Sites515UnlimitedCustom
GBP Accounts 31025Custom
Regular AI Quota100250UnlimitedCustom

Performance Max vs Search Campaign: Smarter Automation, Higher Profits

Performance Max sounds simple, right? But here’s the problem: It’s a black box. You won’t always know where your ads show up or which searches drive results.

That’s why Search Campaigns are great. They give you full control over keywords, ad copy, and targeting. If you like hands-on optimization, Search is the way to go. ➡️

But the real winner? Using an AI tool better than Performance Max to save time, monitor, and optimize. That’s where OTTO Google Ads comes in.

It automates the process, refines targeting, and maximizes your budget—so you get better results with less effort.

Try OTTO Google Ads with our FREE TRIAL today, effortless campaigns, smarter results, no commitment. ✨

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Picture of Luccas Alves
Content Strategist
Luccas Alves is a Content Strategist at Search Atlas. He has over 6 years of content marketing and SEO experience. He's passionate about mastering content strategy, diving deep into digital marketing tools, exploring AI innovations, and staying ahead with modern marketing approaches.

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