5 ways to get the most from Performance Max in 2025

Since its introduction in 2021, Performance Max has gained traction for its ability to streamline performance marketing, especially for businesses looking to scale efficiently. 

However, as the PPC platform’s AI capabilities evolved, so did the demand for more transparency, control, and customization. 

In 2024, Google responded with significant updates to improve brand safety, creative asset management, and audience targeting – giving advertisers greater insight into how their campaigns perform.

With upcoming enhancements in 2025, including the introduction of brand guidelines, negative keywords, and deeper integration with Google Analytics 4, PMax is expected to be adopted by even more advertisers. 

These developments aim to give advertisers greater control and improve campaign performance.

This article discusses strategies for making the most of all the new capabilities.

Looking ahead: Performance Max in 2025

Google is set to roll out several key updates for Performance Max in 2025. 

Here’s a breakdown of what’s changing, how it differs from current practices, and how advertisers can best leverage these new features.

Brand guidelines

What was announced

Starting this month, all new PMax campaigns will require business name and logo assets. This update aims to improve brand consistency across Google’s various ad placements.

How is it different from before? 

Previously, advertisers could launch PMax campaigns without branding assets, sometimes leading to generic, less recognizable ads. 

The new requirement ensures that campaigns reflect a cohesive brand identity across search, display, video, and other Google properties.

How can an advertiser best use this? 

Advertisers should prepare by uploading high-quality logo assets and consistent business names in their Google Ads accounts. 

Consider refreshing brand creatives to align with the campaign messaging for maximum impact. 

Additionally, this update opens up opportunities for brand storytelling, especially in video and display formats.

Negative keywords

What was announced

Google will add negative keywords directly to PMax campaigns, giving advertisers more control over where their ads appear.

How is it different from before? 

Until now, advertisers had limited options to control where PMax ads were shown, often resulting in irrelevant placements. 

Negative keyword lists were only available at the account level, which limited campaign-level precision.

How can an advertiser best use this? 

Use negative keywords to exclude low-performing queries or irrelevant audiences. 

For example, a luxury brand can exclude terms like “cheap” or “free” to avoid wasting budget on unqualified clicks. 

Regularly review search query reports and refine negative keyword lists to improve campaign performance over time.

Demand Gen campaigns

What was announced

In mid-2025, Video Action campaigns will transition to Demand Gen campaigns, a new campaign type designed to simplify management and enhance cross-channel optimizations. 

Demand Gen will allow advertisers to serve personalized, visually engaging ads across YouTube, Discovery, and Gmail, with a stronger focus on driving conversions through immersive, audience-driven experiences.

How is it different from before?

Previously, Video Action campaigns were focused solely on YouTube and prioritized direct-response conversions. 

Demand Gen campaigns take this further by integrating Discovery and Gmail placements, making it easier for advertisers to create unified campaigns that reach users across multiple Google properties. 

This shift emphasizes nurturing users throughout the funnel, from awareness to action.

Unlike Performance Max, which automatically distributes ads across all available Google inventory, Demand Gen campaigns give advertisers more control over creative and audience targeting for these specific placements. 

In a way, Demand Gen fills the gap between traditional display and automated campaign types like PMax, offering a middle ground for advertisers who want more control over creative and targeting within Google’s ecosystem.

How should advertisers think about using Demand Gen alongside PMax?

Advertisers should view Demand Gen and PMax as complementary campaign types that serve different roles in a cross-channel strategy:

• Performance Max is ideal for broad, automated reach across all Google channels, including Search, Display, YouTube, and Shopping. It works best for advertisers focused on maximizing conversions through automation, where Google’s AI determines the optimal placements and audiences.
• Demand Gen campaigns provide more creative control for visually rich formats, especially for upper-funnel and mid-funnel audiences. These campaigns are better suited for building brand awareness and engagement through immersive storytelling on channels like YouTube, Discovery, and Gmail.

To maximize the impact of both campaign types, advertisers should use PMax for scalable conversion-focused efforts and Demand Gen for more targeted audience engagement in visually driven channels. For instance:

• PMax can drive conversions across multiple channels, leveraging Google’s AI to target users who are ready to act.
• Demand Gen can focus on high-impact, creative storytelling, especially for new product launches, brand campaigns, or retargeting efforts on YouTube and Discovery.

What’s the strategy for using both together?

• Use PMax to capture demand: Focus on conversions across Search, Shopping, and other intent-driven placements.
• Use Demand Gen to create demand: Leverage visually engaging formats to build brand affinity and nurture users through the funnel.

Practical example
Imagine a fitness brand launching a new line of workout equipment. 

They could use Demand Gen campaigns to create visually engaging video ads on YouTube and Discovery, telling the brand story and showcasing product features.

Meanwhile, PMax campaigns can run in parallel, capturing search intent and transactional traffic to drive sales.

Google Analytics 4 (GA4) integration

What was announced

PMax will be fully integrated with Google Analytics 4, offering advertisers full-funnel measurement capabilities.

How is it different from before? 

Previously, PMax reporting was limited to Google Ads metrics, making it difficult to track user behavior across the entire customer journey. 

With GA4 integration, advertisers can track and optimize user interactions at every stage – from initial awareness to final conversion.

How can an advertiser best use this? 

Set up GA4 goals and events that align with your business objectives. 

Use these insights to identify drop-off points in the funnel and optimize campaigns accordingly. 

For example, if users frequently abandon carts, you can adjust your PMax strategy to address these barriers through retargeting.

Smarter audience segmentation

What was announced

Google will enhance audience segmentation tools, enabling advertisers to create more personalized ad experiences and efficient cross-channel strategies.

How is it different from before?
While PMax already uses Google’s audience signals, the new tools will allow advertisers to better segment audiences based on behaviors, interests, and engagement across channels.

How can an advertiser best use this? 

Leverage the new segmentation tools to create hyper-targeted campaigns. 

For example, create unique messaging for high-value customers, re-engage lapsed users with special offers, or craft product-specific ads based on user interests. 

Combining audience segmentation with first-party data will maximize personalization.

First-party data strategies

What was announced

Third-party cookies are on their way out. Advertisers must focus on building first-party data strategies to maintain privacy compliance and campaign performance.

How is it different from before? 

In the past, many advertisers relied heavily on third-party cookies for targeting. With privacy changes, those methods are becoming obsolete. 

First-party data – such as customer emails, purchase history, and website interactions – will now play a crucial role in audience targeting.

How can an advertiser best use this? 

Focus on collecting and organizing first-party data by encouraging users to sign up for newsletters, loyalty programs, or gated content. 

Use tools like Customer Match to create custom audiences within Google Ads, allowing for more relevant and privacy-compliant targeting.

Dig deeper: Performance Max vs. Search campaigns: New data reveals substantial search term overlap

Strategies for advertisers in 2025

The 2025 updates to Performance Max require advertisers to rethink their approach to targeting, creative, and campaign management. 

Below, we’ve expanded on each strategy with actionable advice, real-world examples, and links to helpful resources for further exploration.

1. Prioritize first-party data: Build compliant, high-performing campaigns

With third-party cookies being phased out, first-party data – like email addresses, purchase history, and website interactions – is becoming critical for personalized, privacy-compliant targeting.

How can advertisers do this?

• Action item: Create incentives for users to share their information. For example, offer exclusive discounts, early access to sales, or free downloadable content in exchange for email sign-ups.
• Use case: A retailer could implement a loyalty program to collect first-party data, then use Customer Match in PMax to serve highly relevant ads to their best customers.
• Helpful resource: Google’s Customer Match Guide.
• Advanced tip: Use GA4 audience segments to enrich your first-party data and personalize campaigns based on user behavior across your website and app.

2. Leverage advanced analytics: Use GA4 to track and optimize the full funnel

The GA4 integration allows advertisers to track the entire user journey – from awareness to conversion. 

This gives you better insights into what’s working and where you’re losing potential customers.

How can advertisers do this?

• Action item: Set up GA4 goals and events to track key actions like add-to-cart, form submissions, and video views. Use this data to identify drop-off points in the funnel and optimize your PMax campaigns accordingly.
• Use case: An online course provider could use GA4 to track user engagement with different course categories, then adjust their PMax ads to focus on the most popular categories.
• Helpful resource: GA4 Conversion Tracking Setup.
• Advanced tip: Use GA4’s predictive metrics, like purchase probability, to build predictive audiences and target users who are more likely to convert.

3. Adopt negative keywords: Refine targeting to reduce wasted spend

Adding negative keywords to PMax campaigns in 2025 will give advertisers more control over where their ads appear, helping to avoid irrelevant searches and reduce wasted spend.

How can advertisers do this?

• Action item: Start by reviewing your search term reports in existing campaigns to identify irrelevant queries. Build a negative keyword list and update it regularly.
• Use case: A luxury brand could add negative keywords like “cheap” or “discount” to avoid attracting price-sensitive shoppers who are unlikely to convert.
• Helpful resource: Google’s Negative Keywords Guide.
• Advanced tip: Use account-level negative keyword lists now, and prepare to migrate them to campaign-level lists when the feature rolls out in 2025.

4. Prepare for Demand Gen campaigns: Adapt to a new cross-channel campaign type

In mid-2025, Video Action campaigns will transition to Demand Gen campaigns, allowing advertisers to reach users across YouTube, Discovery, and Gmail with unified messaging.

How can advertisers do this?

• Action item: Review your Video Action assets to ensure they’re flexible enough to work across Discovery and Gmail placements. Focus on storytelling that resonates across platforms.
• Use case: A fitness brand could create video ads promoting a new workout program, then extend those assets to Discovery and Gmail to build a cohesive user journey.
• Helpful resource: Google’s Demand Gen Campaign Overview.
• Advanced tip: Use audience expansion and exclusion lists to ensure your Demand Gen campaigns target the right users while avoiding low-value placements.

5. Focus on creative excellence: Build high-quality, brand-consistent assets

The new brand guidelines for PMax require advertisers to use business names and logo assets, ensuring brand consistency across all ad placements. 

Creative quality will be critical for performance in automated campaigns.

How can advertisers do this?

• Action item: Audit your existing creative assets to ensure they’re brand-compliant and adaptable across channels. Run asset experiments in Google Ads to test different creative combinations
• Use case: A travel company could use dynamic creatives to automatically adjust their ads based on user intent, showing beach destinations to users searching for summer vacations and city breaks to users interested in cultural trips.
• Helpful resource: Google’s Asset Experiment Guide.
• Advanced tip: Video content will become even more important with the rise of Demand Gen campaigns. Focus on creating short, engaging videos that work across multiple platforms.

Dig deeper: Why strong Google Ads creative is THE priority for advertisers

Thriving in the era of Performance Max: Adapt or fall behind

The trajectory of Performance Max tells a clear story: digital advertising is evolving rapidly, and AI is at the helm. 

In just a few years, PMax has transformed from an experimental campaign type into Google’s flagship ad solution, capable of reaching millions across Search, Display, YouTube, and more – all while requiring less hands-on management. 

But here’s the reality: automation alone won’t guarantee success. 

Advertisers must understand how to shape the machine’s decisions by leveraging first-party data, creative excellence, and smarter audience strategies.

The updates rolling out in 2025 – negative keywords, brand guidelines, and Demand Gen campaigns – signal a shift toward greater advertiser control, which is exactly what the industry has been asking for. 

However, there’s a paradox at play: as automation gets smarter, human oversight and strategy become more important than ever. 

You can’t let Google’s black box do all the work; you need to guide it, challenge it, and optimize it to achieve real results.