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Why is PMax the standard campaign type used by all advertisers nowadays?
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All advertisers are definitely not using PMAX. I’d say like 20% lol if even that.
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PMAX is the future that Google wants for PPC in general. Full automation, what moves the needle is the quality of you assets and 1P data. Most people that are using it in industries where it doesn’t make sense are using it because it’s so pushed on from Google when you first log into the platform.
You’re not wrong about it having crappy placements a lot of the time, but usually that includes Display, Discover, or some of YT. You can limit that with proper signals and things like that but it takes time. Sometimes, with the proper set up and audience targeting you can get some use out of PMAX.
But you’re right, most brands would be better off with more control like in Standard shopping and such but usually go for a hybrid model where they separate winners and losers in either PMAX or Stan Shopping
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PMax needs lots of conversion data in order to know who to serve your ads to, and when and where to serve them. If you’re a small account with not many conversions then you will waste more spend with PMax compared to search and shopping.
But if you have a lot of data then PMax can be quite efficient and doesn’t require nearly as much babysitting. That’s why it’s popular. Another reason is Google used to prioritise PMax in auctions, so advertisers had to adapt to using it (that’s no longer the case anymore).
If you set a target ROAS on a PMax campsign then it will not overspend on placements that don’t convert. Most ecom businesses running pmax will aim for around 70-80% of spend on shopping, with the rest on search and a tiny bit of display and video for retargeting.
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