Future of Advertising: Unlock the Power of Demand Gen & Performance Max

Future of Advertising: Unlock the Power of Demand Gen & Performance Max

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Demand Gen or PMax (Performance Max) campaigns? Which way should you go? If you’re at these marketing crossroads, then you’re in the right place. They are both types of Google Ads campaigns, and your choice of one or the other can mean the difference between success and failure. In this article, we’ll lay into the demand gen vs performance max showdown

The differences between Demand Gen and Performance Max campaigns

1. Ad formats

Right off the bat, you’ll notice that demand gen adds support fewer formats, namely:

  • Videos (short form only)
  • Images
    Meanwhile, performance max ads support all these plus HTML 5 ads as well. In terms of video formats, they also support long-form video which Demand Gen ads do not.

2. Inventory selection

There’s also a crucial difference in terms of inventory. With Demand Gen, you manually choose where your ads pop up in terms of Gmail, YouTube, and so on. Meanwhile, Performance Max automatically takes care of this for you. It uses AI to select an inventory that’s in line with your goals.
As a result, you’ll notice that Performance Max campaigns tend to reach a broader audience. Meanwhile, Demand Gen can be quite limited in reach because you dictate the channel.

3. Audience targeting

A subtle yet key difference also comes in terms of targeting. Performance Max can help you reach a more relevant audience because it leverages first-party data and can automatically retarget. Therefore, it’s not far farfetched to argue that it could get you higher-quality leads in comparison.

Unpacking more key differences and similarities

Let’s first start by summarizing the similarities because they aren’t that many. First, Performance Max campaigns and Demand are both Google Ads. And being as such, they appear on channels that Google owns. So they may share platforms on:

  • Google Video Partners
  • Discovery Gmail
  • YouTube

Now onto the differences. With Performance Max, you can also enjoy unique placements such as featuring on Google Maps, Gmail, Display, Shopping, and Search. On the other hand, you can get more targeting control with Demand Gen compared to Performance Max where AI controls a lot. So your hands are tied concerning ad controls.


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      Where Performance Max campaigns are most applicable

      1. Full Funnel Marketing

      Don’t need to target leads at any specific stage of the funnel? Want to reach everyone in it? Then we recommend performance max campaigns if that’s the case. Be it anywhere between conversion and awareness, this presents an excellent full-funnel solution.

      2. Marketing on Autopilot

      If you’re pressed for time or simply need an extra hand, Pmax campaigns are also ideal. With AI doing a lot of the heavy lifting, it can make marketing very effortless. All you need to do is give it audience signals, copy, and campaign creatives to work off.

      3. Bolstering search campaigns

      Are your search campaigns not hitting their stride? Then Pmax ads may just give them the shot in the arm that they need. It’s also a great option if you want to expand your reach into different platforms.

      When Demand Gen ads are the wiser choice

      Taking the shoe onto the other foot, Demand Gen campaigns also have their usefulness. There are situations when they are the better option to perform max campaigns. These scenarios include:

      1. Funnel stage targeting

      Sometimes, your mid and top-funnel stages can be so slow. You’re struggling to generate interest and awareness in your product. So you’re losing prospects before they even learn about your product. In such cases, Demand Gen ads can be miracle workers.

      2. When quality is the end game

      Do you value quality over quantity? If you have a very high-value offer that hingles getting quality leads, then Demand Gen ads are also great. They can help you get prospects with very high buying intent due to their advanced audience targeting controls.

      Conclusion

      None is better than the other. Only that they are both great but for different situations and objectives. If quality is not your primary concern at the moment, and you just need to drum up more reach and attention, performance max ads are great. Conversely, if targeting control and pushing leads down the funnel is the present priority, consider Demand generation ads. That said, asses each type’s strengths and weaknesses against your goals and you’ll know which way to go.

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