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Google Smart Shopping

Google Smart Shopping (now Performance Max) was an automated Google Ads campaign type that used machine learning to display products across Google Search, Shopping, Display, YouTube and Gmail.

What was Smart Shopping?

Google Smart Shopping was a campaign type in Google Ads that combined standard Shopping campaigns with automated remarketing. Google used machine learning to optimize bids, placement, and creative elements to maximize conversion value. In September 2022, Smart Shopping was fully replaced by Performance Max.

Performance Max - the successor

Performance Max (PMax) builds on Smart Shopping and provides even broader coverage across all Google ad channels:

  • Google Search: Text ads in search results.
  • Google Shopping: Product ads with image, price and title.
  • Display Network: Banner ads on millions of websites.
  • YouTube: Video ads before and during videos.
  • Discover: Ads in the Google Discover feed on mobile.
  • Gmail: Ads in the Gmail inbox.
  • Maps: Local ads in Google Maps.

How Performance Max works

Performance Max uses Google's AI to optimize the entire campaign automatically:

  1. You create asset groups with texts, images, videos and your product feed.
  2. Google automatically puts together the best ad creatives based on your assets.
  3. The AI optimizes bids, targeting and placement in real-time.
  4. The campaign automatically shows your products to the most relevant users across all channels.

Requirements for Performance Max

  • Google Merchant Center: Your product feed must be set up, approved and updated.
  • Conversion tracking: Proper tracking of purchases via Google Ads conversion tags or GA4 is necessary for the AI to optimize.
  • Budget: A sufficient daily budget to collect enough data. Google recommends at least 10x your expected CPA.
  • Assets: The more assets (texts, images, videos) you provide, the better Google can optimize the ads.

Pros and cons

The pros

  • Broad coverage: Your products automatically appear across all Google channels.
  • Automatic optimization: The AI adjusts bids and targeting in real-time with minimal time from you.
  • New customers: Google finds potential customers you might have overlooked.
  • Simple setup: One campaign covers all channels instead of separate campaigns.

Disadvantages

  • Limited control: You have less control over where and when your ads appear.
  • Difficult to diagnose: Limited insight into performance per channel makes it difficult to understand what works.
  • Requires data: The campaign requires a certain volume of conversions to optimize effectively.
  • "Black box: Google's AI makes many decisions that you can't see through or adjust.

Performance Max for Shoporama stores

Shoporama automatically generates product feeds to Google Merchant Center via the built-in Google Shopping feed. Once your feed is set up and approved in Merchant Center, you can create Performance Max campaigns in Google Ads that automatically promote your products across all Google channels. Combine this with proper conversion tracking via Google Tag Manager or GA4, which Shoporama also supports.

Tips for Performance Max

  • Good product feed: Use clear titles, detailed descriptions and high-quality product images. The feed is the foundation.
  • Audience signals: Add audience signals (existing customer lists, visitors, interest-based audiences) to help the AI during the learning period.
  • Patience: Give the campaign at least 4-6 weeks to learn and optimize before evaluating results.
  • Negative keywords: Add negative keywords to avoid irrelevant searches and protect your brand name.

We know online marketing in Shoporama

We've been working with online marketing ourselves for decades. As the only shop system in the country, we have spoken multiple times at conferences such as Marketingcamp, SEOday, Shopcamp, Digital Marketing, E-commerce Manager, Ecommerce Day, Web Analytics Wednesday and many more.

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