If you run a service-based business, choosing between Performance Max (PMAX) campaigns and local search ads can have a big impact on how you get leads. In this episode of the Max Conversion podcast, we look at how PMAX campaigns compare to traditional search ads in the real world. We talk about the pros and cons of each and give tips on how to use them effectively. By the end, you'll know which campaigns are best for your business and how to get the most out of your ad spend (ROAS).

Table of Contents

Understanding PMAX and Local Service Ads

With PMAX campaigns, advertisers can use AI-driven automation to reach people on all of Google's platforms, including Search, YouTube, Gmail, and Display. Local service ads, also known as traditional Google Search campaigns, focus on searches based on intent, which means they connect you with people who are actively looking for your service.



Kyle, the host of Max Conversion, says, "Even though PMAX campaigns cost less per lead, the quality of those leads can vary." Search ads bring in real people who are actively looking for your service, which often leads to better leads.

Campaign Performance Comparison: Real-Life Example

We looked at a pool company that was running both PMAX and search campaigns to show the difference. This is what we found:

Search Campaign Results:

• Conversion rate: ~12%
  
• Cost per lead: $130
  
• Lead quality: High (real calls from people actively searching for pool services)
  
  

PMAX Campaign Results:

• Remarketing leads: 12 leads at $34 per lead
  
• Cold audience leads: 8 leads at $77 per lead
  
• Lead quality: Mixed, with some bot traffic and low-intent form submissions
  
  

The main point is that PMAX campaigns can lower the cost of leads a lot, but if you don't filter and track them correctly, you might lose lead quality. Search campaigns cost a little more, but they bring in the most interested leads, which are more likely to turn into customers.

Optimizing PMAX Campaigns for Better Results

PMAX campaigns are powerful, but they require careful setup and filtering to maximize ROI. Here’s how to get the most out of them:

1. Focus on Conversions That Matter
   Track conversions that lead to actual sales or meaningful customer contact. Prioritize calls over form submissions, and set a minimum call duration (e.g., 30 seconds) to filter out spam or low-quality leads.
   
   
2. Apply Audience Targeting and Signals
   Use audience signals to target homeowners or people actively searching for pool services. Narrow targeting helps Google’s AI reach the right audience across multiple channels.
   
   
3. Channel and Device Management
   
   
4. Emphasize Search as the primary channel for cold audience campaigns.
   
5. Consider negative bid adjustments for tablets and TVs, as these often generate clicks but few quality leads.
   
   
6. Regularly Review Search Terms and Add Negative Keywords
   
   
7. Monitor the search terms triggering your ads.
   
8. Add negative keywords to prevent irrelevant traffic, e.g., “pool repair” if your campaign is focused on pool installation.
   
   
9. Offline Conversion Tracking
   Integrate offline conversion tracking to see which leads actually convert into sales. This ensures you measure ROI accurately and avoid optimizing for low-quality leads.
   

When to Use PMAX vs Search Campaigns

Choosing between PMAX and search ads depends on your business stage and goals:

• New Businesses: Start with tightly targeted search campaigns using exact-match keywords to capture high-intent leads.
  
• Established Campaigns: Use PMAX for remarketing and to expand reach to a cold audience once you already have reliable search campaign performance.
  
• Scaling Leads: PMAX campaigns are easier to scale with increased budgets, but search campaigns may hit a ceiling if targeting is too narrow.
  
  

Kyle says:
“If you’re starting out, focus on search first. PMAX can complement your campaigns later with remarketing or additional cold audience targeting.”

Conclusion

A good Google Ads strategy should include both PMAX and search campaigns. PMAX campaigns are great for getting more people to see your ads and lowering the cost of leads when they are properly filtered. Search campaigns, on the other hand, give you high-quality leads that are likely to convert. The key is tracking, filtering, and analyzing performance to ensure every dollar spent contributes to your ROI.



Book a free strategy call with Max Conversion if you need help making your Google Ads work better.