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- With Performance Max campaigns, you only pay for the performance that your ad gains
- Prices are dynamic, which means they can change based on a number of factors
How much do Performance Max campaigns cost?
Performance Max campaigns serve across all ad channels, so the amount you pay depends on the ad formats serving in your campaign. You’ll only pay for the performance that your ad gains and there are no startup costs to create and run a Performance Max campaign.
This makes Performance Max campaigns a good option for most advertisers, because it’s easy to set up, serves across all channels, and automatically optimizes to maximize performance across all of Google Ads inventory.
- Google’s AI adjusts bids dynamically based on expected conversion probability and value. If a search is more likely to convert, the system may increase the bid.
- Bidding is influenced by historical data, user intent, audience signals, and advertiser-defined targets, like cost per action (CPA) or return on ad spend (ROAS).
- Performance Max automatically distributes the budget across channels like Search, Display, YouTube, Shopping, Discover, among others, based on where it predicts the highest return.
Billing in Performance Max works consistently with other campaign types based on where ads are served, for example:
- For ads on YouTube instream, advertisers are billed based on CPM.
- For image ads on the Discover Feed, YouTube home feed or watch next feed, advertisers are billed on clicks to the website.
- For ads on Gmail we will bill an “engagement” on a teaser click to expand the ad. Advertisers are not charged for the secondary click to the website.
- For ads on Search, Shopping, Display, Maps, advertisers will be billed based on clicks.
The billing model is independent of the bidding strategy, Performance Max will always try to optimize for ROI.
Performance Max campaigns use real-time pricing, so ad costs change based on several factors:
- Payment Basis: Payment is based on ad performance with dynamic pricing.
- Dynamic Prices: The price that you pay isn't fixed, Google uses the bid along with the ad’s quality and expected impact to determine ad rank.
- Channel-Specific Billing: Billing follows the same structure, with costs depending on ad placement, like CPM for YouTube Instream, clicks for Search, Shopping, and Discover, among others.
- Campaign-Level Evaluation: Evaluate Performance Max campaigns at the campaign level, since the system optimizes across channels based on conversion objectives.
- Placement Reports: Use placement reports for brand safety, not performance evaluation.
Performance Max campaign prices are dynamic and influenced by several factors, including:
- How much competing advertisers in your area are spending
- How relevant your ad is to a person's Google search
- How likely a person's search will result in a sale
Learn more about Performance Max Pricing.
