One of our longtime clients, Wallbeds “n” More in Reno, came to us with a clear goal: generate more leads without increasing their Google Ads budget. By carefully strategizing and launching a Google Ads Performance Max campaign, we were able to dramatically reduce their cost per lead—from $63.58 down to $26.44, all without changing the total ad spend.
What is the Google Ads Performance Max Objective?
A Performance Max Campaign in Google Ads is designed to drive conversions across all of Google’s platforms: Search, Maps, Gmail, YouTube, Display, and Discover. Rather than focusing on a single network like traditional search campaigns, Performance Max dynamically adjusts creative and placements to maximize performance based on available data.
This campaign type is fully automated, using machine learning to optimize ads in real-time. While it can deliver strong results—like we saw in this case—it comes with tradeoffs: less transparency, limited control, and unpredictable outcomes if not managed carefully.
Because of these factors, we don’t launch Performance Max campaigns for every client. Instead, we recommend testing this approach only when we have strong conversion data and confidence that it aligns with the client’s goals.
Performance Max Campaign vs. Search Campaign
To measure the true effectiveness of this approach, we ran a side-by-side month-over-month comparison for Wallbeds “n” More.
| Month 1 Search Campaign Impressions: 986Clicks: 170Clickthrough rate: 17.24%Conversions: 14Conversion rate: 8.24%Cost per conversion: $63.58 | Month 2 Performance Max Campaign Impressions: 8,563Clicks: 309Clickthrough rate: 3.61%Conversions: 20Conversion rate: 6.47%Cost per conversion: $26.44 |
Performance Max Results:
Why Did Impressions and Clicks Increase?
There was a significant increase in impressions and clicks with the Performance Max campaign because ads were eligible to be shown to people even if they were not actively searching on Google. Because of this strategy, the clickthrough rate dropped significantly.
Perhaps the most fascinating thing to note about the second month is that even though the conversion rate decreased, the number of total conversions increased. This is due to the fact that there are a greater number of people at the top of the funnel for impressions and clicks.
Most importantly, the cost per conversion decreased month over month, which is the metric most meaningful to our client.
Assessing the Lead Quality
Performance means nothing without quality leads. Our team at Three29 wanted to make sure we had metrics for the quality and were able to measure this data in different ways. To assess this, we:
- Monitored all form submissions and phone calls
- Verified lead data was non-spammy and relevant
- Checked for consistency with past leads using qualifying questions
- Reviewed call recordings for quality and lead intent
The result? Lead quality stayed consistent month over month, even after the shift in campaign type.
Our Take: When to Use Performance Max Campaigns
Performance Max can be a powerful addition to your advertising toolkit—but with oversight and only when the conditions are right. At Three29, we typically recommend starting with a traditional Search Campaign. Once enough data is collected and analyzed, a Performance Max campaign may be a worthwhile next step.
Let’s Optimize Your Lead Generation
Whatever your business goals may be, our innovative and dedicated team can help. Our data experts can use a variety of strategies to increase conversion rates. We specialize in:
- Optimizing ad spend across Google’s full ecosystem
- Increasing conversion rates
- Reducing cost per lead
- Understanding audience behavior
Contact us to share your objectives, and let us help you achieve the results you’re looking for.
