Performance Max for local businesses: when to say no

If you've set up Google Ads recently, or had a call from Google, you've probably been nudged towards Performance Max.

It sounds great. One campaign, all of Google's channels, automation doing the hard work. Search, YouTube, Display, Gmail, Maps, the lot.

So why do I often say no to it for local businesses?

What Performance Max does

You give Google your budget, your goal, some text, images and videos, and your website. Google decides where to show your ads, who to show them to and how much to pay.

That's the deal: more reach, less control.

Where it falls down for local service businesses

It needs good data. Automation learns from conversions. If you get a handful of enquiries a week, and some of them are rubbish, it's learning slowly from not much. And it's learning on your budget.

It spreads your money around. Not every channel suits every business. Someone watching a video on YouTube isn't in the same frame of mind as someone searching "emergency electrician near me". A small budget spread across all of Google can end up thin everywhere.

You see less. Google has added more reporting and more controls over time, but you still see less about where your money went than you do with a standard Search campaign.

Rubbish in, rubbish out. If your tracking counts the wrong things, Performance Max will chase the wrong things, very efficiently.

When it can make sense

It can work well for businesses with lots of conversions, accurate tracking, good images and video, and a budget big enough to test properly. Online shops often fit that. Some service businesses do too, once the basics are working.

Where I'd start instead

For most local and service businesses: a Search campaign, tight keywords, proper tracking and a landing page that does its job. Get that working first. Know your cost per lead. Then, if there's a good reason, test Performance Max alongside it and let the numbers decide.

New isn't always better. It's often just newer.