Google has released a new way of running campaigns within Google Ads called Performance Max. Performance Max campaigns include all Google ad types (search, discovery, video, display, local) in one shared campaign, and budget with a singular focus on ad types driving the most desired results. As a Google Premier Partner, PureCars was able to beta test Performance Max campaigns with our dealer partners to see if they held up to the hype.
One of our dealer partners, a 9 store group of luxury and import dealerships, in the Southeastern United States was interested in comparing the effectiveness of Google Performance Max campaigns against their traditional paid search text ads. Testing started in late December 2020 with two locations and by August all locations were running Performance Max campaigns for a group-wide test of these new types of multichannel campaigns.
Results and Analysis
August 1, 2021 – December 31, 2021
Our dealer partner ran concurrent Performance Max and Standard Google Search campaigns over the last 5 months of 2021. There are key areas where the Performance Max campaigns proved to be more successful.
- Conversion Efficiency
- 98% Higher Number of Conversions
- 136% Higher Conversion Rate
- Cost Efficiency
- 80% Lower Cost Per Conversion
- 60% Lower Ad Spend
- 53% Lower Cost Per Click
The standard paid search campaigns out performed the Performance Max campaigns in two key areas.
- Click-Through Rate
- 4.5 times more likely to produce a click from an ad
- Expected because text ads historically have highest CTR
- Traffic From Clicks
- 30% more clicks than Performance Max
Combining the forces of both standard Google paid search campaigns and Performance Max campaigns proved to be beneficial for the dealer group overall. Significant gains in sales, revenue and leads were made August through December 2021 vs 2020.
- Lead volume increased 500% YOY
- Sales increased 13%
- Revenue increased 27%
All of these factors combined demonstrate there is a clear benefit to running both Performance Max campaigns for the efficiency of conversions, and standard search campaigns for the efficiency of website traffic, resulting in more leads, sales and revenue with increased advertising efficiency.
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