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How to Use Google’s PMax and Demand Gen to Make the Most Out of Your Advertising Budget

Lauren Lawson

4 months ago

If you use PPC marketing, then you‘ve probably already heard of Google’s latest campaign type roll-outs, Performance Max (PMax) and Demand Gen, but how do they apply to your business? And what makes them a better choice? As a new way to help advertisers reach target audiences and achieve marketing goals, Google PMax and Demand Gen are designed to leverage the power of artificial intelligence (AI) and its vast network of platforms and properties to stretch your marketing dollar even further.

More Efficient and Effective PPC Marketing

A new way to optimize your advertising budget and reach more customers, you might want to prioritize phasing into Google PMax or Demand Gen campaigns. These powerful campaign types can help you create and manage effective PPC marketing across different channels and platforms. Read on to learn more about how to:

What is PMax?

How Demand Gen Works

The Difference Between Them

What’s Right For Your Business?

How Does a PMax (Performance Max) Campaign Work?

Google’s PMax uses machine learning and artificial intelligence to find the best ad assets for your target audience based on factors like location, device, behavior, and context. You can also measure and optimize your campaign performance using data and insights from Google Analytics, Google Ads, and other sources.

As a new campaign type, Google’s PMax allows you to access all of Google's inventory across Search, Display, YouTube, Gmail, Discover Feed, and more through a single campaign. To top it off, optimizing just got enhanced through AI assistance that automatically optimizes your bids, creatives, and targeting based on your campaign goals and performance signals.

PMax is ideal for businesses who want to

  • Reach new and existing customers across the entire Google network without managing multiple campaigns and creatives.
  • Drive conversions, sales, leads, or brand awareness with flexible and customizable goal options.
  • Test and learn from different creatives, audiences, and strategies with real-time insights and recommendations.

What is a Demand Gen Campaign?

Demand Gen has come to replace Discovery campaigns with a marketing strategy focusing on generating demand for your products or services rather than just awareness. It involves creating and distributing valuable content that educates, engages, and nurtures your customers through the buyer's journey. You can use a Demand Gen campaign to build trust and credibility with your audience and generate qualified leads already at the bottom of the sales funnel.

This new campaign has features that allow you to serve visually appealing, multi-format ads on Google's most impactful placements, such as YouTube, Discover, and Gmail.

Demand Gen campaigns are perfect if you want to:

  • Generate demand and purchase consideration for products or services by showcasing your brand or offerings in an engaging way.
  • Reach potential customers who are in the later stages of their purchase journey, and influence their preferences and decisions.
  • Use a product feed to show relevant and personalized ads to customers, based on their interests and behaviors.
 pmax vs demand gen placements

So, What’s the Difference Between PMax and Demand Gen? And What Makes Them the Better Option?

AI powers Google’s PMax and Demand Gen campaigns and uses the same ad formats and assets, such as images, headlines, descriptions, and logos. However, they have some key differences in reach, inventory, and optimization.

google’s pmax and demand gen campaigns

What Is Right For Your Business, PMax or Demand Gen?

There’s no right answer here because both PMax and Demand Gen campaigns can complement each other and other campaign types to help you reach your online marketing objectives. It’s all about trying them out and seeing which mix gives you better performance.

  • PMax: Reach the widest possible audience across the entire Google network and drive conversions, sales, leads, or brand awareness, depending on your goal. Google’s PMax campaigns help you find new customers and re-engage existing ones.
  • Demand Gen: Generate demand and purchase consideration for your products or services by showcasing your brand or offerings visually appealing and engagingly. Google’s Demand Gen campaigns can help you influence potential customers who are deciding to purchase and persuade them to choose your brand over others.
  • Other campaign types (Search, Shopping, Video, or Display): Complement your PMax and Demand Gen campaigns and target specific keywords, products, audiences, or placements with more granular control and customization. Capture the intent and interest of users actively searching for or browsing your products or services and drive them to act.

Tips on using them effectively:

  • Define your goals and KPIs. 
    • What do you want to achieve, and how will you measure it? 
    • Do you want to increase traffic, conversions, sales, or retention? 
    • What are the metrics that matter most for your business?
  • Segment your audience. 
    • Who are you targeting, and what do they need? 

Pro-tip:Use Google’s PMax to create custom audiences based on various criteria, such as demographics, interests, behaviors, and intents. You can also find similar audiences that share characteristics with your existing customers.

  • Create relevant content. 
    • Provide value to your audience and address their pain points and challenges.

Pro-tip: With Demand Gen, you can create content that educates, entertains, or inspires your prospects, such as blog posts, ebooks, webinars, videos, podcasts, or infographics. Creating landing pages that capture leads and offer incentives, such as free trials, discounts, or demos, is also another option

  • Choose the right channels and formats. 
    • Reach your audience where they are and how they prefer. 
  • Test and optimize. 
    • Monitor and analyze campaign performance and make adjustments as needed.

Just In Time For The Holidays, 95% More Traffic With PMax Campaign

Put Google’s PMax and Demand Gen to Work in Your Current PPC Strategy

Google’s PMax and Demand Gen campaigns are two of the newest and most beneficial campaign types it offers your business for PPC marketing. By leveraging the power of AI and Google's vast network of platforms and properties, you can optimize your online marketing strategy and reach your target audiences and goals more effectively and efficiently.

Learn more about how to use Google’s PMax and Demand Gen by reaching out to our dedicated team!