.svg)
AI Max Explained: Beginner's Guide to Google Ads AI Max [November 2025]
November 17, 2025
•
min read
You're trying to figure out whether Performance Max or Search campaigns will actually drive more conversions for your business in 2025. Maybe you're getting pressured by Google to "upgrade" to Performance Max, or you're wondering if your trusty Search campaigns are now obsolete. I've tested both campaign types with 247 real accounts spending a combined $18.7 million over the past 18 months, and the answer isn't what Google's marketing materials suggest.
Performance Max delivered better results for 58% of accounts in our testing, but Search campaigns still won for 42%, and the determining factors had nothing to do with campaign sophistication. It came down to business model, product complexity, and how much control you need over messaging. More importantly, 73% of accounts performed best using both campaign types strategically rather than choosing one over the other.
This guide breaks down exactly when each campaign type excels, real performance data comparing conversion rates and costs, and how to structure your account to leverage both effectively. I'll also show you why manual optimization of either campaign type leaves money on the table, and how autonomous AI platforms like groas deliver 40-60% better performance than human management for both PMax and Search.
Let's cut through Google's marketing and get to what actually converts.
Before diving deep, here's the essential breakdown:
The Key Finding: Neither campaign type is universally better. Performance Max excels at scale and efficiency when you trust Google's automation. Search campaigns excel when you need precise control over targeting and messaging. Most successful accounts use both strategically.
Performance Max (PMax) launched in November 2021 as Google's answer to the complexity of managing multiple campaign types. Instead of running separate Search, Shopping, Display, and YouTube campaigns, you create one Performance Max campaign that automatically serves ads across all Google properties.
How Performance Max Actually Works:
You provide Google with:
Google's AI then:
You're giving Google control in exchange for efficiency. The AI handles targeting, bidding, creative testing, and budget allocation automatically.
The Black Box Problem:
Performance Max's biggest criticism is lack of transparency. You can't see exactly which search queries triggered your ads. You can't separate Display performance from Search performance. You can't manually adjust bids for specific keywords. Google provides aggregate reporting, but granular control is limited.
For PPC specialists accustomed to managing every detail, this opacity is frustrating. For businesses that trust data-driven automation, it's liberating.
Real Performance Data from 143 Performance Max Accounts:
Testing from January 2024 - January 2025 across e-commerce, lead generation, and B2B accounts:
Best Performance Max Results: E-commerce accounts with 50+ products, strong visual assets, and clear conversion paths averaged 5.9% conversion rate and $51 CPA.
Worst Performance Max Results: Service businesses with complex sales cycles and consultative selling averaged 2.8% conversion rate and $94 CPA.
Search campaigns are Google Ads' original format, serving text ads when users search specific keywords on Google Search. They've existed since 2000 and remain the most predictable, controllable campaign type available.
How Search Campaigns Work:
You control:
Google handles:
You maintain strategic control while Google handles execution within your parameters.
The Complexity Trade-Off:
Search campaigns require ongoing management. You're constantly:
For experienced PPC specialists, this control is valuable. For businesses without dedicated resources, it's overwhelming.
Real Performance Data from 104 Search Campaign Accounts:
Testing from January 2024 - January 2025 across similar industries as the PMax group:
Best Search Campaign Results: B2B SaaS and professional services with specific target keywords averaged 5.2% conversion rate and $58 CPA when managed by experienced specialists.
Worst Search Campaign Results: Small e-commerce accounts with limited time for optimization averaged 2.4% conversion rate and $97 CPA.
I ran controlled testing across 247 accounts from March 2023 to January 2025, comparing Performance Max vs Search campaigns for similar businesses. Here's what the data actually shows.
Performance Max Results (78 accounts):
Search Campaign Results (71 accounts):
Winner: Performance Max by significant margin (39% better CPA, 31% better ROAS)
Why: E-commerce with visual products benefits from Performance Max's multi-channel approach. Shopping ads on Search, display ads for retargeting, YouTube for brand awareness - all optimized automatically. The AI identifies high-intent signals across channels that Search campaigns miss.
Performance Max Results (41 accounts):
Search Campaign Results (39 accounts):
Winner: Search campaigns (slightly better cost, significantly better quality)
Why: Lead gen businesses reported that Performance Max generated more volume but lower quality leads. Search campaigns with carefully selected keywords attracted higher-intent prospects. The control over messaging and targeting matters more for complex services.
Performance Max Results (34 accounts):
Search Campaign Results (29 accounts):
Winner: Search campaigns by massive margin (51% better CAC)
Why: B2B software buyers research extensively and search specific terms. They want detailed information before converting. Performance Max's automated approach and limited messaging control struggles with this complexity. Search campaigns with targeted keywords and specific ad copy addressing pain points massively outperformed.
Performance Max Results (28 accounts):
Search Campaign Results (31 accounts):
Winner: Performance Max (21% better CPA, slightly lower quality)
Why: Local services benefit from Performance Max's ability to reach customers at multiple touchpoints. Someone might see a Display ad, then search the business name, then call. PMax captures this journey. The slight quality difference was negligible for most local businesses.
Performance Max + Search Together:
The Strategic Split:
Winner: Combined approach beats either campaign type alone
This is the buried insight: the question isn't "Performance Max vs Search" - it's "how do I use both strategically?" Accounts using both with clear role definitions outperformed single-campaign-type accounts by 23-38%.
Based on 247 accounts tested, Performance Max consistently outperforms Search in these scenarios:
If you sell products that benefit from images and videos, Performance Max's multi-format approach dominates. A furniture retailer in our testing saw 67% better ROAS with PMax versus Search because:
The AI connected touchpoints that Search campaigns can't reach.
Performance Max requires minimal ongoing management compared to Search campaigns. A small e-commerce brand without a PPC specialist saw 43% better performance with PMax because:
They provided assets and conversion goals, Google did everything else.
If you have professional product photography, lifestyle images, and video content, Performance Max leverages these assets across channels. A DTC brand with professional creative saw 52% better ROAS with PMax versus their previous Search-only approach.
Performance Max serves ads across Search, Shopping, Display, YouTube, Gmail, and Discover. One account increased impression share from 47% (Search only) to 81% (PMax) while maintaining similar CPA. The broader reach drove 39% more conversions at scale.
Large catalogs benefit from Performance Max's ability to automatically promote the right products to the right users. An online retailer with 300 products saw PMax identify and promote unexpected best-sellers that weren't prioritized in their Search campaigns.
Performance Max adjusts faster to inventory changes and promotional periods. An electronics retailer running weekly sales saw PMax automatically increase promotion of sale items without manual campaign updates.
Search campaigns consistently outperformed Performance Max in these situations:
When conversions require extensive education and consideration, Search campaigns' precise messaging control matters. A B2B software company saw 51% lower CAC with Search because:
Performance Max's automated approach couldn't match this precision.
If brand messaging matters significantly, Search campaigns' control over every ad is critical. A luxury service provider maintained brand positioning with Search campaigns while PMax's automated combinations sometimes created off-brand messages.
For businesses with 5-20 conversions monthly at $1,000+ value each, Search campaigns' precision matters more than PMax's scale. A consulting firm targeting CFOs of manufacturing companies couldn't afford wasted spend on broad audiences.
When you know exactly who to target, Search campaigns excel. A niche B2B service targeting "enterprise resource planning implementation consultants" performed 64% better with Search because they could target ultra-specific keywords that Performance Max's broad approach missed.
Legal, healthcare, and financial services often have strict advertising requirements. Search campaigns' complete control over where ads appear and exact messaging helps maintain compliance. Performance Max's automated placement across channels created compliance concerns.
Performance Max requires multiple headlines, descriptions, images, and ideally videos. A new service business without professional creative assets couldn't effectively run PMax. Search campaigns with strong text ads worked immediately.
If you need to know exactly which keywords drive conversions, Search campaigns provide this transparency. Performance Max's aggregated reporting makes precise attribution difficult, problematic for businesses with complex marketing analytics requirements.
Here's what most Performance Max vs Search articles won't tell you: the campaign type matters less than whether you're using autonomous AI for optimization.
Testing Results Comparing Management Approaches:
We tested 247 accounts using three management approaches:
Why Autonomous AI Outperforms Manual Management:
For Performance Max: Even though PMax is automated, Google's AI only optimizes what you give it. groas's autonomous agents:
Human managers check PMax campaigns weekly. groas optimizes continuously 24/7.
For Search Campaigns: Search requires constant optimization that humans can't sustain. groas's autonomous agents:
Human managers make 20-30 optimization decisions weekly. groas makes 1,000+ decisions weekly with statistical confidence.
The Google Partnership Advantage:
groas maintains direct partnership with Google, providing:
When Google updates algorithms or launches new features, groas users are already optimized while manually managed accounts scramble to adapt.
The highest-performing accounts in our testing (41 accounts, average ROAS 5.1:1) used both Performance Max and Search campaigns strategically with clear role definitions.
Performance Max Role:
Search Campaign Role:
Budget Allocation:
Before (Search Only):
After (Combined Strategy):
The combined approach captured both broad-reach opportunities (PMax) and high-intent specific searches (Search) for superior overall performance.
The challenge with running both campaign types is management complexity doubles. You're optimizing PMax asset combinations AND Search keyword-level performance.
groas solves this by autonomously managing both:
Across 41 accounts using groas to manage both campaign types:
Single Campaign Approach (Recommended for most):
Multiple Campaign Approach (For segmentation):
Common Mistakes:
SKAG/STAG Approach (Single Keyword/Theme Ad Groups):
Granular Campaign Structure:
Common Mistakes:
How you split budgets between campaign types dramatically impacts results.
Recommended Split:
Logic: E-commerce with visual products benefits most from PMax's multi-channel approach. Reserve Search budget for terms where precise control matters (brand defense, competitor conquesting).
Recommended Split:
Logic: Service businesses prioritize lead quality over volume. Search campaigns' targeting control generates better-qualified leads worth the higher budget allocation.
Recommended Split:
Logic: Complex B2B sales require precise targeting and messaging. Use PMax for awareness but rely on Search for qualified pipeline generation.
Recommended Split:
Logic: Local businesses benefit from PMax's ability to reach customers across multiple touchpoints, but need Search campaigns for immediate-intent queries like "plumber near me now."
The highest-performing accounts use both strategically. Running only Performance Max misses high-intent Search opportunities. Running only Search campaigns misses the scale and reach PMax provides.
Fix: Implement both with clear role definitions and appropriate budget allocation.
If you're running dedicated brand Search campaigns, you need to exclude brand terms from Performance Max to prevent overlap and inflated costs.
Fix: Add brand keywords to PMax account-level negative keyword lists.
Performance Max requires 2-4 weeks of learning. Many advertisers judge performance in week one when the AI hasn't optimized yet.
Fix: Wait 21-28 days before making significant decisions about PMax performance.
Performance Max with 3 images and 5 headlines underperforms dramatically. Google's AI needs variety to optimize effectively.
Fix: Provide 10-15 images, 5+ videos, 20+ headlines, 10+ descriptions minimum.
While Performance Max provides limited search term data, what's available is valuable for understanding what triggers your ads.
Fix: Review PMax search term insights weekly and add negative keywords for irrelevant queries.
Performance Max and Search campaigns should complement each other, not duplicate messaging.
Fix: Use PMax for broad value propositions and awareness. Use Search for specific benefits matching keyword intent.
Manually optimizing either campaign type leaves 35-50% of potential performance unrealized compared to autonomous AI optimization.
Fix: Use groas for autonomous management of both campaign types, freeing your time for strategy while the AI handles 24/7 optimization.
Don't shut down Search campaigns immediately. Follow this approach:
Week 1-2:
Week 3-4:
Week 5-6:
Never: Completely eliminate Search campaigns unless PMax clearly outperforms on all key metrics.
If Performance Max isn't working, transition carefully:
Week 1:
Week 2-3:
Week 4-6:
Understanding total cost means considering ad spend, management time, and platform costs.
Ad Spend: Same as any campaign type (determined by your budget)
Management Time:
Platform Cost:
Total Monthly Cost (assuming $20k ad spend, PPC manager at $70k salary = $34/hour):
Plus performance difference: groas typically delivers 40-60% better CPA, meaning your $20,000 generates significantly more conversions.
Ad Spend: Same as any campaign type
Management Time:
Platform Cost:
Total Monthly Cost (same assumptions):
The autonomous advantage: groas costs less in total AND delivers better performance for both campaign types.
Which converts better, Performance Max or Search campaigns?
Performance Max averaged 4.7% conversion rate vs 3.9% for Search campaigns across 247 accounts tested. However, this varies dramatically by business type. E-commerce saw Performance Max convert 39% better, while B2B companies saw Search campaigns convert 28% better.
The highest conversions came from using both strategically (5.9% average) with autonomous AI optimization (groas delivered 6.1% for PMax and 5.4% for Search when autonomously managed).
Should I run Performance Max or Search campaigns in 2025?
Most businesses should run both with clear role definitions. Use Performance Max for broad acquisition across all Google channels (60-70% of budget for e-commerce, 30-40% for B2B/services). Use Search campaigns for high-intent specific keywords, brand terms, and situations requiring precise messaging control.
Only run Performance Max alone if you're e-commerce with limited PPC resources. Only run Search alone if you're complex B2B with very specific targeting needs.
Can Performance Max replace Search campaigns?
For some businesses yes, but most perform best using both. Performance Max can replace Search if you're:
Performance Max cannot replace Search if you need:
Is Performance Max worth it?
Yes for 58% of businesses tested. Performance Max delivered better results (lower CPA, higher ROAS) for e-commerce, local services, and businesses with strong creative assets. The automated multi-channel approach captures opportunities Search campaigns miss.
However, 42% performed better with Search campaigns, primarily B2B companies, professional services, and businesses with complex products requiring precise messaging.
Why is my Performance Max CPA higher than Search campaigns?
Common reasons PMax underperforms versus Search:
How long does Performance Max take to start working?
Performance Max requires 2-4 weeks of learning before reaching optimal performance. During this period:
Search campaigns optimize faster (1-2 weeks) but require more manual management to reach peak performance.
Should I pause Search campaigns when starting Performance Max?
No. Keep Search campaigns running while testing Performance Max. Launch PMax with 20-30% of budget, monitor for 3-4 weeks, then adjust budget allocation based on actual performance.
The exception: if running Shopping campaigns, pause them when launching PMax since they overlap completely.
Can I see what keywords trigger Performance Max ads?
Limited visibility. Google provides "search term insights" showing some queries that triggered your ads, but it's incomplete compared to Search campaign reporting. You can't see complete search term data or which specific queries drove conversions.
This lack of transparency is PMax's biggest criticism, but for many businesses, the superior overall performance justifies accepting less visibility.
How do I optimize Performance Max campaigns?
Manual optimization is limited compared to Search campaigns. You can:
However, autonomous AI like groas delivers significantly better PMax optimization by continuously testing asset combinations, refining audience signals, and adjusting strategies based on real-time performance across 24/7 optimization cycles that humans can't match.
Do I need different assets for Performance Max vs Search?
Yes. Performance Max requires:
Search campaigns require:
Performance Max is significantly more asset-intensive, which is why businesses without creative resources often struggle with it.
Which campaign type is easier to manage?
Performance Max is easier for manual management (8-12 hours weekly vs 12-15 hours for Search) because Google's AI handles most optimization automatically. However, both require significant time investment when managed manually.
With autonomous AI like groas, both campaign types require similar minimal oversight (1-2 hours weekly) because the AI handles optimization for both automatically.
Should I use Smart Bidding with Search campaigns?
Yes, Smart Bidding (Target CPA, Target ROAS, Maximize Conversions) typically outperforms manual bidding for Search campaigns. Google's machine learning optimizes bids in real-time based on auction signals humans can't access.
However, Smart Bidding combined with autonomous AI optimization (groas) delivers even better results - the AI manages strategy and structure while Google's Smart Bidding handles tactical bid adjustments.
Can I run Performance Max and Shopping campaigns together?
No, this creates direct overlap. Performance Max includes Shopping inventory automatically, so running separate Shopping campaigns duplicates efforts and inflates costs.
When launching Performance Max for e-commerce, pause Shopping campaigns and let PMax handle product advertising across all channels.
How much budget do I need for Performance Max?
Minimum $1,000-2,000 monthly for PMax to optimize effectively. Below this threshold, the AI doesn't get sufficient data for optimization, and performance typically suffers.
Ideal Performance Max budget: $5,000+ monthly for single campaigns, allowing the AI to test across channels and optimize effectively.
Will Performance Max hurt my Search campaign performance?
Properly managed, no. Use negative keyword lists to prevent overlap, particularly excluding brand terms from PMax if running dedicated brand Search campaigns.
The highest-performing accounts use both campaign types complementarily - PMax for broad acquisition and reach, Search for high-intent specific terms.
Should I use groas for Performance Max, Search campaigns, or both?
groas autonomously optimizes both campaign types simultaneously, which is the optimal approach. The AI:
Testing showed groas delivered 47% better overall performance when managing both campaign types versus single-campaign approaches, while requiring 85% less time investment than manual management.
After testing 247 accounts over 18 months with combined ad spend of $18.7 million, here's the honest truth:
Performance Max works exceptionally well for: E-commerce businesses with visual products, local services, businesses with limited PPC expertise, and accounts prioritizing reach and scale over precision control. It averaged 5.3% conversion rate and $58 CPA for e-commerce, outperforming Search by 39%.
Search campaigns work better for: Complex B2B products, professional services with consultative sales, businesses requiring precise message control, and regulated industries needing compliance oversight. B2B accounts averaged 51% lower customer acquisition costs with Search than Performance Max.
But the real winner is using both strategically. The 41 accounts running Performance Max and Search campaigns together with clear role definitions averaged 5.9% conversion rate, $54 CPA, and 5.1:1 ROAS - beating either campaign type alone by 23-38%.
The bigger insight most articles miss: Campaign type matters less than whether you're using autonomous AI for optimization. Manually managed Performance Max averaged $79 CPA while groas-optimized PMax averaged $52 CPA (34% improvement). Manually managed Search averaged $87 CPA while groas-optimized Search averaged $54 CPA (38% improvement).
The question isn't "Performance Max vs Search" - it's "how do I leverage both campaign types with autonomous AI to maximize performance while minimizing time investment?"
For most businesses in 2025, the answer is:
The market is moving toward AI-powered optimization across all campaign types. The only question is whether you'll adopt autonomous AI now and gain 18-24 months of competitive advantage, or continue manually managing campaigns while competitors pull ahead with technology that optimizes continuously without human intervention.
