Quick answer: Performance Max or Search first?
Most new accounts, or accounts with untested tracking, should start with Search campaigns on high-intent keywords, because you control the keywords, see every search term and learn what converts. Move to (or add) Performance Max once conversion tracking is reliable and you get roughly 30+ conversions a month. E-commerce stores with a clean product feed are the main exception - a feed-based Performance Max campaign can work early.
Open a new Google Ads account today and Google will nudge you towards Performance Max within minutes. It is Google's most automated campaign type, and in the right account it works very well.
But "right account" matters. For a new account, or a brand moving serious budget into Google for the first time, starting with Performance Max can mean spending lakhs without learning what actually works. This guide explains the difference in plain language and gives you a simple way to decide.
What is a Performance Max campaign?
Performance Max (often called PMax) is a single campaign that shows your ads across all of Google's inventory - Search, Shopping, YouTube, Display, Discover, Gmail and Maps. You give it a goal, a budget, your assets (headlines, images, videos) and, for e-commerce, a product feed. Google's AI decides where, when and to whom to show the ads.
What changed in Performance Max in 2025-26
Early Performance Max was a black box. Through 2025 Google added a lot of the control advertisers had been asking for:
- Search terms report - you can now see which searches triggered your ads.
- Channel performance reporting - see how Search, YouTube, Display and other channels performed.
- Campaign-level negative keywords and negative keyword lists - block irrelevant searches directly.
- Brand exclusions, demographic exclusions and device targeting - more say over who sees your ads.
These make Performance Max much easier to manage than it was two years ago. They do not change the basic fact that it needs conversion data to work well.
What is a Search campaign?
A Search campaign shows text ads on Google search results when people search for keywords you choose. You pick the keywords, write the ads, set the bids or bidding strategy, and see every search term that triggered a click.
Where AI Max for Search fits in
Google has also added AI Max for Search, an optional switch inside a normal Search campaign. It adds broader search term matching, automatically tailored ad text and final URL expansion (sending people to the most relevant page on your site). Think of it as a middle path: Search campaign structure and reporting, with some of Performance Max's automation.
Performance Max vs Search: side-by-side comparison
| Search campaign | Performance Max | |
|---|---|---|
| Where ads show | Google search results (and search partners if enabled) | Search, Shopping, YouTube, Display, Discover, Gmail, Maps |
| Who chooses targeting | You (keywords) | Google AI, guided by your assets, audience signals and search themes |
| Control | High | Medium (better since 2025) |
| Needs conversion data? | Helpful but can start without | Yes - works best with steady conversions |
| Creative needed | Text ads only | Text, images, ideally video; product feed for e-commerce |
| Best for | New accounts, untested tracking, high-intent searches, lead generation | Accounts with reliable tracking, e-commerce with a feed, scaling |
Which should you start with?
Use these rules of thumb. They are not Google rules - they are what tends to work for growing brands spending ₹10 lakh to ₹1 crore a month on ads, in India and beyond.
Start with Search if any of these are true
- Your Google Ads account or conversion tracking is new or untested.
- You are moving budget into Google for the first time and have no conversion history there yet.
- People already search for what you sell ("physiotherapist near me", "buy cold pressed coconut oil").
- You sell services or generate leads, where lead quality varies a lot.
- You want to learn which keywords and messages convert before you automate.
Start with Performance Max if these are true
- You run an e-commerce store with a clean Google Merchant Center product feed.
- Purchase tracking is set up and tested (Google Ads conversion tag or GA4 import, ideally with enhanced conversions).
- You get, or can afford to get, roughly 30 or more conversions a month.
- You have decent images and at least one short video - otherwise Google may auto-generate weak ones.
The common middle path for e-commerce
Many stores do best with two campaigns: a small brand Search campaign (people searching your brand name) and a feed-based Performance Max for products, with your brand name added as a brand exclusion in Performance Max. This keeps brand traffic cheap and stops Performance Max from looking better than it is by taking credit for people who were already searching for you.
A simple 90-day plan for a new account
Days 1-30: Search on high-intent keywords
Pick 10-30 keywords that clearly show buying intent. Use phrase and exact match, write 2-3 responsive search ads per ad group, and send traffic to the most relevant page - not the home page. Check the search terms report every few days and add negative keywords (see our guide to negative keywords).
Days 31-60: Fix tracking and double down
Confirm every conversion is recorded once and only once. Move budget to the ad groups with the lowest cost per conversion. Once a campaign has steady conversions, test a smart bidding strategy such as Maximise conversions with a target CPA set at or below your break-even max CPA.
Days 61-90: Add Performance Max (or AI Max)
If you are getting around 30+ conversions a month, launch Performance Max with a separate budget, your best-performing headlines as assets, and your converting customer list as an audience signal. Alternatively, switch on AI Max inside your best Search campaign and compare results for 3-4 weeks.
Performance Max launch checklist
Assets to prepare before launch
Minimum asset set for one asset group
- Your best 5+ headlines and 2+ descriptions from Search (the ones with the most conversions).
- At least 5 good images in square and landscape sizes, plus your logo.
- At least one short video - if you skip it, Google may auto-create one from your images.
- Audience signal: your customer list and website visitors.
- Brand exclusions and your shared negative keyword lists applied.
Common mistakes to avoid
- Launching Performance Max with no conversion tracking. It will optimise for whatever it can find, which is usually cheap, low-quality traffic.
- Judging it in the first week. Give Performance Max 2-4 weeks before big changes.
- Letting it eat your brand traffic. Add brand exclusions and keep a brand Search campaign.
- Ignoring the new reports. Check search terms and channel performance at least weekly and add negatives.
- Optimising for clicks. Always optimise for conversions or conversion value, and compare cost per conversion with your break-even.
Key takeaways
- Start with Search when your account is new, your Google spend has no conversion history yet or your conversion tracking is untested.
- Use Performance Max once you have reliable tracking and roughly 30+ conversions a month - or earlier for feed-based e-commerce.
- Keep brand keywords in a separate Search campaign and add brand exclusions to Performance Max.
- Since 2025, Performance Max has search terms, channel reporting and negative keywords - use them.
- Judge both campaign types on cost per conversion and profit, not clicks.
Performance Max vs Search: frequently asked questions
Is Performance Max better than Search campaigns?
Can I run Performance Max and Search together?
What is the minimum budget for Performance Max in India?
Can I add negative keywords to Performance Max?
What is AI Max for Search?
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