Let’s talk about the best strategies for managing your Performance Max bids in Google Ads. This is the same approach we use at Big Flare to handle literally millions of dollars in ad spend on Performance Max campaigns.
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The Three Stages of Performance Max Campaigns
To get the most out of your Performance Max campaigns, it’s crucial to adjust your bid strategy as you move through different stages:
Launch.
Testing.
Scaling.
Let’s look at each one.
1. Launch Phase
When you first launch your Performance Max campaign, your strategy should depend on whether your Google Ads account is fresh or established.
Fresh Account: If you have a new account with few or no conversions, the best approach is to use Maximise Conversions without setting a target CPA. This allows Google to gather data without being constrained by a CPA target. If you have multiple products with different price points, switch to Maximise Conversion Value and leave the target ROAS field blank.
Established Account: If your account has plenty of historical data, you can set a target CPA or ROAS right from the start. However, start with an easier target (e.g., a higher CPA or lower ROAS) to ensure the system spends and tests effectively. Gradually adjust these targets as you gather more data.
2. Testing Phase
The Testing Phase typically lasts for 1 to 2 months or until you’ve accumulated 50-100 conversions. This is the time to fine-tune your bid strategy and prepare for scaling.
Fresh Account: Continue running your campaign without a target CPA or ROAS. Use daily budget adjustments to control your CPA or ROAS. If your CPA is too high, reduce your daily budget to lower the CPA. If it’s lower than expected, increase the budget to accelerate testing. Towards the end of this phase, set your target CPA or ROAS to align with your actual performance.
Established Account: You should already have a target CPA or ROAS in place. During this phase, gradually adjust your targets until you reach your desired CPA or ROAS. For example, if you started with a $100 target CPA but aim for $50, slowly decrease the target throughout the testing phase.
3. Scaling Phase
The Scaling Phase is where the real growth happens.
This phase could last anywhere from 1 to 3+ months, depending on your account.
At this point, your campaign should be stable, consistently hitting your target CPA or ROAS.
The goal here is simple: increase your daily budgets to scale up your campaign.
Since you’re already meeting your performance targets, you can afford to be aggressive with budget increases. However, if you’re not an experienced media buyer, consider limiting budget increases to 50-100% with a 2-4 week interval between each increase. This approach allows for substantial growth while keeping things under control.
By following these steps, you should now have a well-scaled Performance Max campaign with a finely tuned bid strategy.
The Key To Profitable Growth
Managing your Performance Max bid strategy effectively is key to growing your campaigns profitably. By adjusting your strategy through the Launch, Testing, and Scaling phases, you can ensure that your campaigns are well-optimised for both performance and growth. Remember, your bid strategy is just one piece of the puzzle—ongoing optimisations are essential to achieving long-term success.