(un)Common Logic Insights

Fix PMAX Campaigns for Holiday Revenue Growth

Written by Cameron Knight | Nov 20, 2025 1:59:59 PM

The Promise and Pitfalls of PMAX

When Google launched Performance Max campaigns, the pitch was enticing: give the platform your creative assets, budget, and conversion goals, and Google’s AI will do the rest. For resource-strapped teams, PMAX promised efficiency, scale, and simplified campaign management across channels.

But as many Paid Media Managers and CMOs have learned the hard way, PMAX isn’t a set-it-and-forget-it solution — especially not during Q4. Instead of driving profitable growth, PMAX often cannibalizes branded search campaigns, over-optimizes for vanity conversions, and hides insights behind opaque reporting.

This becomes a costly problem in Q4 when CPCs are already inflated and every dollar must pull its weight. If your PMAX campaigns are underperforming, you’re not alone. The good news? With careful restructuring and oversight, PMAX can still be a valuable tool in your holiday strategy.

Why PMAX Struggles in Q4

Cannibalization of Branded Campaigns

One of the most common frustrations is that PMAX spends aggressively on branded search queries. While these clicks look great on paper with high CTRs and low CPLs, they’re customers who likely would have converted anyway through branded campaigns. The result is inflated performance metrics without net-new growth. At (un)Common Logic, this is one of the most common things we see & reveal to prospective clients considering on an agency switch. Brands have no insight into how much their spend is being spent solely on Branded terms & existing users when being driven from PMAX. 

Over-Optimization for Cheap Conversions

Because PMAX optimizes for volume, it often chases the lowest-cost conversions available. That might mean form fills, email signups, or remarketing clicks — actions that don’t necessarily translate into revenue. In Q4, this leads to wasted budget during a period when customer acquisition should be focused on sales.

Limited Transparency in Reporting

Unlike traditional campaigns, PMAX doesn’t provide granular data on placements or keyword performance. This lack of transparency makes it difficult for marketers to know what’s truly driving conversions — or to intervene when campaigns drift toward inefficiency.

Inflexibility Under Peak Competition

Q4’s heightened competition puts pressure on PMAX’s automation. Without human oversight, PMAX may misallocate spend to low-margin products or underperforming creative because it lacks context on profitability.

How to Fix PMAX Before It Eats Your Holiday Budget

Improving PMAX isn’t about abandoning it altogether. It’s about setting boundaries and guiding Google’s automation with smarter inputs.

Exclude Branded Queries

The first step is to protect your branded search campaigns. Set exclusions in your PMAX settings or restructure campaigns so branded traffic is isolated. This prevents PMAX from inflating performance with conversions you already own. Use a standard shopping campaign geared only towards your branded terms and funnel out generic negatives so they go towards PMAX and new customer acquisition.

Restructure Asset Groups by Intent or Product Line

PMAX works best when its inputs are tightly controlled. Instead of lumping all products and creative into one campaign, break them out by:

  • Product categories (e.g., “men’s shoes” vs. “women’s shoes”).

  • Funnel stage (prospecting assets vs. remarketing assets).

  • Customer intent (holiday gift campaigns vs. replenishment campaigns).

This level of segmentation gives the algorithm clearer signals and ensures budget flows to the right assets.

Layer in Audience Signals

PMAX allows you to provide audience signals, and doing so is essential. Feed in CRM lists, high-value customer segments, or website visitors. These don’t restrict PMAX, but they guide it toward higher-quality audiences.

Assign Accurate Conversion Values

Instead of tracking every lead equally, weight conversion goals by margin or lifetime value. For example, a purchase of a high-margin item should carry more weight than a discount-driven SKU. This shifts PMAX optimization away from chasing volume and toward profitability.

Benchmark Against Standard Shopping or Search

Always run PMAX alongside standard Shopping or Search campaigns as a benchmark. If PMAX underperforms, you’ll know quickly. This parallel structure ensures you’re not flying blind.

Case Example: A Retailer Restructures PMAX

One national retail brand experienced exactly these challenges during Q4. Their PMAX campaigns showed strong ROAS on paper, but revenue growth lagged expectations. Deeper analysis revealed that 60% of PMAX conversions came from branded searches they were already capturing.

Challenge

  • Wasted budget on branded clicks.

  • Inflated conversion numbers disconnected from revenue.

Strategy

  • Excluded branded queries.

  • Split campaigns by product line (high-margin vs. low-margin).

  • Weighted conversion tracking by margin contribution.

  • Layered in CRM-based audience signals to improve quality.

Results

  • ROAS improved by 68%.

  • Conversions doubled, with higher average order value.

  • Profitability increased even as spend scaled for the holiday season.

The key insight: PMAX can deliver results, but only when managed with discipline and context.

Key Takeaways

  • PMAX often cannibalizes branded campaigns and inflates metrics.

  • Excluding branded queries protects your true performance view.

  • Structuring campaigns by product line and audience signals improves efficiency.

  • Weighted conversion tracking shifts optimization toward profitability.

  • Running PMAX alongside traditional campaigns provides accountability.

PMAX can be a helpful part of your Q4 strategy — but only when you manage it actively instead of leaving it on autopilot.

At (un)Common Logic, we help brands restructure campaigns like PMAX to align with real business goals. Explore our Paid Media strategy or connect with us to see how we can help.

FAQs

Should I pause PMAX during Black Friday?

Not necessarily. PMAX can be effective if exclusions and structure are in place. The key is monitoring daily.

Can PMAX work for prospecting?

Yes, but only if audience signals are layered in. Otherwise, it tends to over-prioritize remarketing and branded traffic.

How do I measure PMAX’s true impact?

Benchmark against standard Shopping or Search campaigns and evaluate revenue, not just conversions.

What’s the biggest mistake to avoid?

Allowing PMAX to over-optimize for cheap conversions that don’t drive sales.