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Meta Description: Unlock the power of Performance Max campaigns for your Sydney business. Our 2025 guide provides data-driven strategies, expert tips, and local insights to boost your ROAS.
It feels like every other week there’s a new “game-changer” in digital marketing. But let me be honest—most are just tweaks on old ideas. Performance Max campaigns are different. This isn’t just an update; it’s a fundamental shift in how Google Ads operates, and for Sydney businesses, it’s an opportunity we can’t afford to ignore. In my work with local businesses across the city, I’ve seen first-hand the impact that well-executed Performance Max campaigns can have.
Why the urgency? Because the data is overwhelmingly clear. Research from Google reveals that 46% of all its searches have local intent. That’s nearly half of all users looking for something right here in Sydney. And with 70% of Australian small businesses now deep into digital advertising, the competition is fiercer than ever. Standing out requires a smarter, more efficient approach. That’s precisely where Performance Max comes in.
What Exactly Are Performance Max Campaigns?
At its core, a Performance Max (PMax) campaign is a goal-based campaign type that gives you access to all of your Google Ads inventory from a single campaign. Instead of you painstakingly setting up separate campaigns for Search, Display, YouTube, Gmail, Discover, and Maps, PMax does it for you. It uses Google’s AI to automate targeting and delivery, finding your customers across Google’s entire ecosystem.
Here’s the thing: it’s not just about saving time. It’s about leveraging machine learning to find conversion opportunities you would have missed. The algorithm tests thousands of signal combinations in real-time to place the right ad in front of the right person at the moment they’re most likely to convert.
Think of it this way. A potential customer might see your YouTube ad while researching, then see a Display ad on their favourite news site, and finally search for your business on Google Maps. A traditional setup would struggle to connect those dots. A Performance Max campaign handles it seamlessly.
The Hard Data: Why PMax is a Game-Changer in 2025
I’m a data-driven marketer, and I believe decisions should be backed by numbers, not just hunches. The latest statistics on Performance Max are compelling, especially for the competitive Australian market.
### Unprecedented Reach and Impressions
One of the first things our clients notice is the sheer scale. According to Google’s ANZ insights from Q1 2025, advertisers using PMax saw an average 35–40% lift in total impressions across channels compared to their old, siloed campaigns. This isn’t just vanity metrics; it’s about getting your brand in front of more potential Sydney customers, more often.
### A Significant Boost to Your Bottom Line
Return on Ad Spend (ROAS) is where the rubber meets the road. Data consistently shows advertisers using Performance Max report seeing double the return on ad spend compared to older campaign types. A recent case study is particularly telling: a furniture retailer—not too different from some we work with in the Alexandria design precinct—used PMax with their first-party customer lists. The result? A 23% improvement in ROAS while keeping their monthly spend consistent. That’s a fair dinkum improvement.
### More Conversions, More Value
Google has been relentlessly refining the PMax algorithm. Over 90 quality improvements were rolled out in the past year alone, directly resulting in advertisers seeing more than 10% increases in both conversions and conversion value. It’s getting smarter, more efficient, and better at finding customers who are ready to buy.
What’s Working on the Ground for Sydney Businesses
Data is great, but what does this look like in practice for a business in Sydney? From our work at The Profit Platform, we’ve identified a few key areas where Performance Max campaigns are really excelling.
### Dominance for Local Retail and E-Commerce
If you run an e-commerce store or a physical retail shop, PMax should be at the top of your list. I recently worked with a boutique in Paddington struggling to drive both online sales and foot traffic. By integrating their Google Merchant Centre feed into a Performance Max campaign, we saw their products appearing not just in Shopping results, but on YouTube Shorts, in local map packs, and across the Display Network. It’s this multi-channel visibility that’s crucial for cutting through the noise in a busy retail hub.
### AI-Powered Creative for Time-Poor Owners
Let’s be real, most small business owners don’t have a dedicated creative team. One of the most powerful 2025 updates is Google’s ability to automatically generate high-quality image and text assets based on your website or landing page. The AI continuously tests different combinations of headlines, descriptions, and images to find the winning formula. This means your ads are always optimising, even when you’re busy running your business. It’s not perfect, but it’s a massive leg up.
### Local Services Finding New Customers
It’s not just for e-commerce. We’ve seen fantastic results for local service providers, from electricians in the Sutherland Shire to physios in the Inner West. Because Performance Max campaigns integrate so tightly with Google Maps and local search, they are incredibly effective at capturing high-intent local customers. If someone is searching for “emergency plumber Hornsby,” PMax ensures your ad is front and centre across multiple touchpoints.
The Unvarnished Truth: Common PMax Challenges We See
It’s not all sunshine and rainbows. I wouldn’t be doing my job if I didn’t tell you about the potential pitfalls. Performance Max campaigns are powerful, but they require a different mindset and can present unique challenges.
### The “Black Box” Problem
While Google has dramatically improved transparency with channel-level performance insights, you still have less direct control over placements compared to traditional campaigns. You can’t simply say, “Don’t show my ads on this specific YouTube channel.” You’re trusting the algorithm to make the best decisions. This can be unsettling for business owners who are used to having granular control.
### Your Creative Assets Are Your Fuel
This is the big one. The AI is only as good as the ingredients you give it. I worked with a restaurant in Surry Hills whose initial PMax campaign was underperforming. The problem? They had only provided a few low-quality photos of their food. The algorithm had nothing to work with. Success with Performance Max campaigns is heavily dependent on providing a wide variety of high-quality assets:
- At least 15-20 different images (lifestyle, product, in-situ).
- Multiple compelling headlines and descriptions.
- High-quality video (even a simple, well-shot 15-second clip can make a huge difference).
Without strong creative, you’re hamstringing the campaign from the start.
### Performance Varies by Industry
The data shows, and our experience confirms, that e-commerce and retail generally see the best results from PMax out of the gate. For lead-generation or B2B service businesses, it can be more challenging. It doesn’t mean it won’t work, but it often requires more sophisticated audience signals and might need to be used as a complement to a highly-targeted Search campaign rather than a replacement.
Building Your Foundation: Essential Asset Preparation
Before you even think about launching a Performance Max campaign, you need to get your house in order. Your creative assets are the foundation of your entire campaign.
### Curate a Diverse Image Library
Think beyond standard product shots. For a fashion boutique, this means photos of the clothes on models, flat lays, and shots of the storefront. For a landscaping company, it’s before-and-after shots, photos of your team at work, and beautiful images of finished gardens. You need variety to give the AI enough material to test.
### Script Compelling Headlines and Descriptions
Don’t just write one or two headlines. Write at least five, and then write another five. Brainstorm different angles:
- Problem/Solution: “Tired of Blocked Drains? We Offer 24/7 Service.”
- Benefit-Driven: “Experience Authentic Italian Dining in the Heart of Leichhardt.”
- Unique Selling Proposition: “Handcrafted Leather Goods, Designed in Sydney.”
- Call to Action: “Shop Our New Collection Now & Get Free Shipping.”
### Invest in Video (Seriously)
Video is no longer optional. A 2025 study from Wyzowl found that 89% of people say watching a video has convinced them to buy a product or service. Performance Max heavily utilises YouTube, including Shorts. You don’t need a Hollywood budget. A well-lit, clear video shot on a modern smartphone can be incredibly effective.
Fuelling the AI: The Critical Role of Audience Signals
This is where you move from a basic PMax setup to a truly high-performance one. Audience signals are hints you give to Google’s AI about who your ideal customer is. This helps the machine learning algorithm find new customers who look and behave like your existing ones, faster.
### What Are Audience Signals?
These are groups of people you suggest the campaign should target. Key types include:
- Your Data (First-Party): This is the gold standard. It includes customer lists you can upload (e.g., from your email newsletter or CRM), website visitors (retargeting lists), and app users.
- Custom Segments: You can create audiences based on what people are actively searching for on Google or the types of websites they visit.
- Interests & Demographics: Broader targeting based on what Google knows about a user’s interests (e.g., “Home & Garden Enthusiasts”) and their demographic profile.
### The Power of Your Own Data
Remember that furniture retailer with the 23% ROAS improvement? That was achieved by feeding their own customer lists into the Performance Max campaign. By telling Google, “These are the people who have already bought from me,” you give the AI a powerful head start in finding more people just like them. If you have a customer database, using it as an audience signal isn’t just a best practice; in my opinion, it’s essential for maximising your results.
A Step-by-Step Guide to Setting Up Your First Campaign
Ready to dive in? Setting up a Performance Max campaign is more straightforward than you might think. Here’s a simplified breakdown.
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Define Your Objective: Inside Google Ads, you’ll start by choosing a goal. Is it Sales, Leads, Website Traffic, or LoGoogle Adsvisits and promotions? This choice fundamentally shapes how the AI will optimise your campaign. Be crystal clear about what you want to achieve.
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Set Your Budget and Bidding: Start with a daily budget you’re comfortable with. For bidding, you’ll typically focus on either maximising Conversions or Conversion Value. If you have a specific cost-per-acquisition (CPA) or return-on-ad-spend (ROAS) target, you can set that too.
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Create Your Asset Groups: This is where you upload all your creative. An asset group is a collection of images, logos, videos, headlines, and descriptions related to a specific product or service. If you’re a shoe store, you might have one asset group for “Men’s Running Shoes” and another for “Women’s Leather Boots.”
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Add Your Audience Signals: This is the crucial step we just discussed. Add your retargeting lists, customer match lists, and any relevant custom segments or interests. Give the AI its starting coordinates.
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Review and Launch: Double-check everything, from your budget to your ad copy. Once you’re happy, hit launch. But your job isn’t done. The first couple of weeks are a “learning phase” where the algorithm gathers data. Don’t make any drastic changes during this time.
Beyond “Set and Forget”: Advanced Optimisation
One of the biggest mistakes I see businesses make is treating PMax as a “set it and forget it” tool. It’s automated, not autonomous. To get the best results, you need to be an active partner with the AI.
### Monitor Channel-Level Performance
Thanks to the 2025 updates, you can now see a breakdown of where your ads are performing. In your campaign insights, look for channel performance. You might discover that YouTube is driving a ton of conversions, while the Display network isn’t. This insight is invaluable. If YouTube is your star player, you should invest in creating more video assets.
### Analyse Asset Group Performance
Within your campaign, Google will rate your individual assets (headlines, images, etc.) as “Low,” “Good,” or “Best.” This is direct feedback from the algorithm.
- Action: Systematically replace your “Low” performing assets with new variations.
- Action: Learn from your “Best” performing assets. What do they have in common? Is it a certain style of image or a specific type of headline? Double down on what works.
### Refine Your Audience Signals
As your campaign runs, you might learn more about who your best customers are. Don’t be afraid to go back and refine your audience signals. You might add new custom segments based on top-performing search themes or update your customer lists. It’s a continuous feedback loop.
Where Performance Max Fits in Your Broader Strategy
A common question I get is, “Should I turn off all my other campaigns and just run PMax?” The answer, for most businesses, is a firm “no.”
I believe Performance Max campaigns work best as the powerful, conversion-focused engine at the bottom of your marketing funnel. It’s brilliant at capturing demand. But you still need to create that demand.
This is where a layered “Power Pack” approach comes in:
- Top of Funnel (Awareness): Use Demand Gen campaigns (Google’s evolution of Discovery campaigns) to introduce your brand to new audiences on visually rich platforms like YouTube, Discover, and Gmail.
- Mid-Funnel (Consideration): Traditional Search campaigns are still fantastic for capturing people actively researching and comparing options with high-intent keywords.
- Bottom of Funnel (Conversion): This is the sweet spot for Performance Max campaigns. They excel at re-engaging users who have shown interest and finding new customers who are ready to convert right now.
When used together, this creates a full-funnel strategy that nurtures a customer from initial awareness right through to purchase.
Is PMax Right for Your Sydney Business?
So, should you be using Performance Max campaigns? Here’s my take for different types of Sydney businesses.
### For E-commerce Retailers in Newtown
Absolutely, yes. It’s practically a requirement now. Your main focus should be on creating a perfectly optimised Google Merchant Centre feed and supplying a rich library of creative assets. PMax will be your primary driver of online sales.
### For Service-Based Businesses in Parramatta
Yes, but with a strategic approach. Use it to complement your existing Search campaigns, not necessarily replace them. Focus heavily on location targeting and use “Local store visits and promotions” as your goal to drive phone calls and on-site visits. Your results will be tied to the quality of your landing page and the clarity of your service offerings.
### For B2B Companies in the CBD
This is the trickiest one. It can work, but it requires very sophisticated audience signals. You’ll need to upload high-quality lead lists as your primary signal. PMax can be effective for generating top-of-funnel leads (e.g., whitepaper downloads), but for high-value B2B sales cycles, it should be just one part of a much larger marketing strategy.
Frequently Asked Questions about Performance Max Campaigns
### Can I use negative keywords in Performance Max campaigns?
Yes, bmarketing strategyou can now add account-level negative keywords, which will apply to your PMax campaigns. You can also contact Google support to add specific negative keywords, but you can’t manage them as freely as in a standard Search campaign.
### How long does it take for a PMax campaign to start working?
You should allow for a “learning period” of at least 2-4 weeks. During this time, the Google AI is gathering data and learning who your best customers are. It’s crucial not to make significant changes to budget or creative during this initial phase.
### Do I still need Search campaigns if I’m running PMax?
In many cases, yes. While PMax does serve ads on Search, a separate Search campaign gives you much more control over exact match keywords, ad copy, and bidding strategy. I often recommend running both, with PMax acting as a wide net and Search acting as a precision spear.
### What is the minimum budget for a Performance Max campaign?
There’s no official minimum, but to give the algorithm enough data to learn effectively, I recommend a budget of at least $30-$50 per day. Anything less, and the learning phase can take a very long time, hindering performance.
### How does PMax work for lead generation vs. e-commerce?
For e-commerce, it optimises towards transaction value using your product feed. For lead generation, it optimises towards the conversion actions you’ve defined (like form fills or phone calls). It’s critical that your conversion tracking is set up perfectly for lead-gen campaigns to work.
### What’s the biggest mistake people make with Performance Max campaigns?
The biggest mistake is providing poor or limited creative assets. The second biggest is setting it and forgetting it. These campaigns thrive on high-quality inputs and continuous, data-informed optimisation.
Your Next Steps with Performance Max
The era of manual, keyword-by-keyword campaign management is evolving. Google’s AI-first ecosystem is here to stay, and Performance Max campaigns are at the very centre of it. For Sydney businesses, this technology offers an incredible opportunity to expand reach, improve efficiency, and drive real, measurable growth.
But it’s not a magic button. Success requires a strategic appSydney businesses high-quality creative, a thoughtful approach to audience data, and a commitment to ongoing analysis and optimisation.
If you’re just starting out, begin by auditing your creative assets. If you’re already running Performance Max campaigns, dive into your asset and channel-level reporting. The data is there. The opportunity is there. Now is the time to seize it.