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Performance Max: the evolution of automation in Google Ads

As we know, the Google Ads ecosystem underwent one of its biggest changes with the advent of the Google Ads campaigns. Performance Max (PMAX). This type of campaign marked a before and after, as it is a fully automated model that uses artificial intelligence and machine learning to optimise spend across all Google channels (Search, Display, discover, Gmail and Maps) from a single configuration. 

Its main objective is to simplify management and maximise performancereplacing the traditional fragmented model to create a more unified, data-driven vision. 

By centralising management and applying real-time predictive models, PMAX changes the way we manage campaigns: it is no longer a matter of manually adjusting each campaign, but rather of feeding the system with quality signals, clear strategies and well-defined objectives..

In the following article we will detail how the campaigns have evolved. Performance Max from its beginnings until today, highlighting its most relevant and recent improvements with the aim of exploiting its full potential and maintaining a balance between automation and human control.

The origins

PMAX

This campaign model was launched between late 2021 and early 2022. Google wanted to take a risk with automation and artificial intelligence at a time when they were not yet at the height of their popularity in the advertising industry. The aim was to unify all Google Ads inventory into a single campaignThe algorithms were left to optimise performance in real time.

However, as good as the idea sounded, the reality was different. Why? Because it assumed relinquishing much of the manual control and, in addition, it had a number of limitations, the most important of which were the following:

  • Lack of visibility in search terms and locations.
  • Limited control over audiences and targeting.
  • Basic reportswith few options for detailed analysis.
  • Low capacity for manual optimisationby relying almost entirely on the algorithm.

Ultimately, it appeared to be an effective system, but with little transparency about how the algorithm made decisions or what it was based on.

Over time, Google has been responding to these criticisms by incorporating more data, controls and functionalities. The most recent versions of PMAX have significantly improved the transparency and access to key informationIt has become a more fine-tuned tool that is more consistent with the way we manage campaigns today.

The evolution of the system

PERFORMANCE MAX

Before we dive into what's new in PMAX campaigns today, it's worth briefly reviewing the evolution of PMAX and how Google has adapted to the current needs of the market, thus perfecting the system.

As already mentioned in the previous section, the Pmax had a number of limitations that meant that many of them had to marketing professionals we would not want to implement them, especially because of mistrust and insecurity

In this way, Google initially focused on improving machine learning and especially in collecting information such as:

  • How platform users set up their campaigns.
  • What types of creative, budgets or audience signals worked best.
  • What performance patterns were repeated by sector, target or conversion type.

On top of that, it listened to existing needs by offering more concrete product improvements every year:

2022: consolidation phase. The system focused on optimising ad delivery and improving the quality of results. 

2023: more transparency. Google added new reports and insights on audiences, conversions and creative assets, allowing for a better understanding of what was working within each campaign.

2024-2025: personalised automation. More configuration options were introduced (more on this in the next section).

With these developments, it has evolved from being a closed system to a more flexible tool, is increasingly achieving a balance between automation and human control. Today, advertisers can better understand what drives results and adjust their strategies without losing the efficiency that AI offers.

New developments defining the present

PMAX EVOLUTION

PMAX today is more control, more data and more transparency.

Listening to the "critics" and needs of those who are immersed in the world of top performing campaigns, Google is constantly evolving and improving to deliver more accurate and controllable results. There is more and more visibility within the system and more resources to optimise it without losing efficiency.

The following highlights the new features of top-performing campaigns that make a difference in the following areas 2024–2025:

  1. Greater transparency and reporting:

In the past, we didn't know exactly where the ads were appearing and what the converting users were looking for. However, we can finally say that this has changed. Google has included more advanced and detailed reporting where we can see a much clearer picture of campaign performance:

  • Search terms and search categories: You can now see which topics and searches generate conversions (and which don't), allowing you to understand user intent and adjust your keyword or audience strategy. You can also exclude terms that don't fit your target audience.

You can find it in the Statistics and reports section of your campaign.

  • Yield per channel and asset type (BETA)The reports differentiate results between YouTube, Display, Search, Discover, Gmail o Mapsto find out where the budget is being best spent.

You can find it in statistics and reports.

  • Audience insights and signalsThe following are the most important signals: they allow you to analyse which audiences respond best and which signals bring the most value to the algorithm. 

By going to Resource Groups and selecting the table format, you will be able to view this data. If you switch to summary format and click on "view details", you will see the insights of the different copies and creatives.

  1. Creativity driven by generative AI

Google Ads is incorporating more and more effectively the Generative AI within the platform, allowing:

  • Automatic generation of texts, images and videos adapted to the different Google formats.
  • Creative suggestions smart headlines, descriptions, or visual combinations that perform better.
  • Manual editing before publishingThis ensures that the result maintains the brand tone and visual coherence.

This can be a great ally for creative teams, as it speeds up processes and brings in new ideas. It is also useful for those who do not have in-house design resources.

  1. Feed optimisation and Merchant Center Next

With the launch of Merchant Center Nextproduct management has been simplified and automated.

The system can now create and maintain a feed directly from website content, eliminating manual tasks and common errors. In addition, users can keeping the catalogue information up to date and improving the relevance of your advertisements without relying on manual processes.

  1. Improved measurement and quality data.

Today, the platform offers more robust tools to understand the true impact of each advertising interaction.

  1. Combined brand and performance strategies

One of the most strategic developments is the possibility of combining performance objectives with brand visibility objectives within the same campaign.

In the past, PMAX was almost exclusively conversion-oriented. Today, it can simultaneously work to generate reach, quality traffic and awarenessin addition to sales.

  • Hybrid optimisation between conversions and outreach.
  • Greater flexibility to allocate budget between objectives without duplicating campaigns.
  • Synergy between branding and performancemaintaining consistency throughout the marketing funnel.

Conclusion

Performance max evolution

Performance Max represents the natural evolution of digital advertising within the Google ecosystem. What started as a closed and non-transparent model has become a much more mature, flexible tool focused on collaboration between the user and artificial intelligence.

Recent enhancements, such as transparent reporting, generative AI-driven creativity or advanced data integration, set a new standard. Now, the real value is not just in letting the system automate, but also in know how to feed it with good signals, quality data and clear objectives..

The future of PMAX not by replacing the human factor, but rather by balancing automation with strategy and creativity.

Those who learn how to combine analytical insight with the intelligent use of these tools will be the ones who achieve the best results in this new era of advertising based on IA.

Picture of Fátima
Fatima

Paid Media Specialist

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