Google Ads Performance Max: How It Works, Asset Groups and Costs

The catch is how it shares the stage with your Search campaigns. Google says Performance Max is designed to complement keyword-based Search, not replace it, and the rules decide who wins a search. When a query matches an exact match keyword in a Search campaign, that Search campaign is prioritised over Performance Max. Performance Max search themes, though, carry the same priority as phrase and broad match keywords. So if you want a particular search to go through your Search campaign, exact match is how you make sure it does.

How Performance Max decides what to show

Google splits the work into what you build and what its AI does with it. This is how its help centre describes the four parts.

Part of the campaign	What you set	What Google AI does
Conversion goals and values	The conversion actions you care about, with an optional ROAS or CPA target	Smart Bidding bids in real-time auctions based on your chance of converting
Creative assets	Text, images and videos, plus text customization and brand guidelines	Generative AI tools combine your assets to help make images and videos
Audience signals	Hints about the customers you want	Speeds up learning using high-intent audiences
Safety and budgets	Daily spend targets, brand exclusions, placement exclusions and content suitability filters	Moves budget towards the best performing inventory and placements

Google recommends Performance Max when you have specific conversion goals such as online sales or leads, when you don't want to restrict where your ads appear, and when you want more reach than keyword-based Search gives you. You can create one with the Sales, Leads, Website traffic or Local store visits and promotions objective, or without a goal's guidance. If you're still working out which campaign type fits, I've compared them in my guide to Google Ads campaign types.

Asset groups: the heart of a Performance Max campaign

An asset group is a set of creatives built around one theme or audience. Any asset in a group can be combined with any other asset in that group to make ads for Search, Maps, Display, YouTube, Gmail, Discover and Google partner sites. You can run several asset groups in one campaign, and Google suggests basing them on the sections or product categories of your website. These are the text limits for each asset group as of October 2026.

Text asset	Character limit	How many
Headlines	30, with at least one of 15 or fewer	Minimum 3, maximum 15
Long headlines	90	Minimum 1, maximum 5
Descriptions	90	Minimum 2, maximum 5
Business name	25, matching your domain or verified business name	1
Display URL path	15 each	Up to 2, optional

Images go up as JPG or PNG files of no more than 5MB, with up to 20 images and up to 5 logos. Google recommends at least one image without text or graphic overlays for each aspect ratio. For video, you can add up to 15, and Google recommends at least one vertical video of 10 to 60 seconds so you're eligible for YouTube Shorts. If you don't add a video, Google may generate one from your other assets, and it may flip horizontal videos into square or vertical versions.

Google also warns that in campaigns using auto-generated video, the product in the video may not match the product on the landing page someone reaches. Its fix is to use product filters so each asset group only shows items relevant to its landing page.

The settings that quietly change your ads

• Text customization, formerly called automatically created assets, lets Google AI write extra headlines and descriptions from your landing page, domain and existing ads. Google says it isn't available for Shopping ads.
• Final URL expansion lets Google swap your chosen landing page for one it thinks matches the search better, and write a matching headline and description. Google is clear you remain responsible for the accuracy and compliance of those pages and generated assets.
• House channel is a Google-managed YouTube channel for uploading video during setup. Use it and you lose YouTube Analytics for the video, remarketing lists from it, custom thumbnails, editing its details and appealing takedowns.
• AI labels: Google notes that rules in the European Union, India and New York require disclosure on some ads made or edited with AI, and its label setting doesn't guarantee you comply.

Conversion goals decide what Performance Max chases

Performance Max is only as good as the goals it optimises towards. Your conversion actions are grouped into standard goals such as Purchases, Contacts or Submit lead forms, and goals you mark as account-default are selected for new campaigns automatically. For a conversion action to drive bidding, two conditions must be met: the action must be set as Primary, and the campaign must use the goal that contains it. A Primary action inside a goal no campaign uses won't steer bidding at all.

Google recommends only one account-default goal when several track stages of the same funnel, giving the example of a shoe retailer choosing Purchase. If you're not tracking conversions yet, set up Google Ads conversion tracking before you launch, because Performance Max has nothing to aim at without it.

Setting up your first Performance Max campaign

1. Make sure conversion tracking is live and your conversion goals are set as you want them.
2. Create a new campaign and choose an objective such as Sales or Leads, then pick Performance Max.
3. Choose a bid strategy focused on conversions or conversion value, with an optional target CPA or target ROAS.
4. Set your budget, then add search themes, brand exclusions and negative keywords where you need them.
5. Build an asset group with text, images, video, logos and a final URL, plus audience signals.
6. Publish. Google says new ads go through review, which can take a few days.
7. Leave it alone through the learning phase, then check Ad strength and asset group status after about 2 to 3 weeks.

That learning point matters. Google says Smart Bidding needs a 7 to 14 day learning phase, and frequent changes to budgets, targets or conversion goals during that time reset it.

What Performance Max costs

Google says there are no startup costs to create and run a Performance Max campaign, and you only pay for the performance your ads gain. Because it serves across every channel, what you pay depends on which ad formats serve, and prices are dynamic. Each time your ad could show, Google runs an auction that weighs your bid, competitor bids and quality score. Budget recommendations of Low, Medium and High show during setup to help avoid a slow start.

My verdict on Performance Max

I'd use Performance Max if your conversion tracking is solid, you've got decent images and at least one video of your own, and you can leave it alone for the learning phase. I'd skip it, or hold back, if your goals aren't set up yet or you need tight control over exactly where ads show. Choose your Google Ads bidding strategy carefully, because that's the steering wheel.

Pulling asset reports and tidying conversion goals each week is the sort of repeat task automation handles well. I run AI training and workshops for teams, and help businesses with AI enablement and workflow automation, so the busywork runs itself and people get time back. Most of that work is with SaaS marketing teams and small businesses. Here's how we can work together.

Frequently asked questions

What is Google Ads Performance Max?

It's a goal-based campaign type that gives you access to all Google Ads inventory, including YouTube, Display, Search, Discover, Gmail and Maps, from a single campaign.

Does Performance Max replace Search campaigns?

No. Google designed it to complement keyword-based Search campaigns, and Search campaigns with an exact match keyword are prioritised over Performance Max when a query matches.

How many headlines can a Performance Max asset group have?

Up to 15 headlines of 30 characters each, with a minimum of 3, plus up to 5 long headlines and up to 5 descriptions.

How long is the Performance Max learning period?

Google says Smart Bidding needs a 7 to 14 day learning phase, and frequent changes to budgets, targets or goals during that time reset it.

Are there setup costs for Performance Max?

No. Google says there are no startup costs, and you only pay for the performance your ads gain.