Updated July 2023
Multifamily Marketers Can Level Up Their Paid Search Strategy
What is Performance Max?
Performance Max is a newer goal-based campaign type that can show ads across all available channels of the Google Ads platform including, Search, Shopping, YouTube, Display, Discover, Gmail, and Maps. It targets all ad formats within a single campaign (wow!). With promises of a large conversion impact, our team tested Performance Max in multiple markets, across 14 properties throughout Q1 of 2023, with a range of budgets.
How Do Performance Max Ads Display?
Google’s Smart Bidding combined with attribution technology determines the best options for your campaign and determines bids on the auctions that meet your goals. Google will mix and match the creative elements to come up with an ad depending on the placement. Amazing, right?
January – March (Q1): The performance of Performance Max did not disappoint with increases of 120% in impressions and 81% more conversions with a 24% more efficient CPL! Its wide reach and simple setup allows our team to capture a large audience with ease. However, with this increase we see the introduction of more bots, click farms, and other malicious clicks.
We Recommend: Implementing this campaign strategy for larger lease-up deals looking to hit occupancy goals and a minimum budget of at least $1,000 a month. Keep in mind that Google will need conversion data points to learn what works and what doesn’t.
April – June (Q2): PMax performance is still supplementing effectively Quarter over Quarter. The increased reach and improved ad targeting algorithm are able to scale further than traditional New Business (NB) search campaigns – we see that with a 36% increase in impressions with a 68% lift in conversions. However, we would like to emphasize again that PMax conversion data can be unreliable due to quality clicks (click farms + malicious clicks). Some notable data:
- The Average Portfolio PMax optimization score is 88%
- The Average Portfolio PMax daily budget is $8.24
- Average Portfolio PMax cost/ quarter is $357
Main Takeaways
- The Future of Google Advertising
Google decides what your ad will look like, where, when, and to who it is shown to (basically, at the mercy of Google). This seems to be where Google is moving and claims to have better insight and produce better performance.
2. It’s A Black Box (Advanced Darkness)
There is limited insight into where the budget is being allocated, what channels it’s being served on, and what visitors (retargeting) are being shown the ads. What little we can see is placement by impressions and search term “themes”.
3. Broader Reach
Utilizing Performance Max on average increased our conversions by 81% and reached 120% more users with its large array of placements. Google handles most of the behind-the-scenes work with automation, you just need to be able to set it up for success (quality creative and conversion history). Viola!
Conclusion
The results of Performance Max did not disappoint with increases of 120% in impressions, and 81% more conversions with a 24% more efficient CPL! Its wide reach and simple setup allows us to capture a large audience with ease to support multifamily marketers’ goals.
Want to know more about Performance Max? Reach out!
