(un)Common Logic Insights

Why Most PMAX Campaigns Are Burning Your Budget

Written by Annie Duke | Aug 6, 2025 11:48:59 PM

PMAX Is Like a Self-Driving Car with No Steering Wheel

Performance Max (PMax) promises full-funnel reach, auto-optimized creative, cross-channel targeting, and lower lift from your team. And to be fair, it can deliver on some of that.

But if your budget is on fire and the only direction you’re getting from Google’s reporting is “Trust the machine,” you’re not imagining things.

PMax works. But only if you know how to work around its biggest weaknesses.

The Promise of PMAX and Where It Fails

Google positioned PMax as the ultimate time-saver for paid media teams. It utilizes automation to manage creative, bidding, audiences, and placements across Search, Display, YouTube, Gmail, and more, enabling you to execute your paid media strategy more efficiently with a single campaign.

But here’s what they didn’t highlight in the product video:

  • Zero visibility into what channels are actually driving results

  • Little to no control over keyword matching

  • Limited insight into search terms or audience breakdowns

  • Campaigns often over-optimize for branded traffic or repeat purchasers

  • Testing is nearly impossible without proper segmentation

The result? CMOs and senior marketers are left with visually appealing dashboards and a limited understanding of what’s working. And when budget decisions come due, that’s a problem.

What “Burning Budget” Looks Like in Practice

At (un)Common Logic, we’ve audited dozens of enterprise PMax campaigns. Here’s what we often find:

  • 30–60% of spend is attributed to branded traffic, inflating ROAS and hiding the actual acquisition cost

  • High frequency on YouTube and Display with no view-through value

  • Conversion paths are dominated by existing customers, not new ones

  • Bids are being driven by goals that don’t match the business model (e.g., optimizing for form fills when the real goal is SQLs)

In other words, you’re paying for activity, not growth, and likely wasting ad spend.

Learn more about our approach to paid media.

What High-Performing Brands Are Doing Instead

Here’s how smart enterprise teams (and their agencies) are fixing the PMax trap without throwing it out entirely:

1. Segment PMAX by Intent

Break out new customer acquisition from branded and retention traffic. This gives you actual insight into who you're reaching — and how much you're paying to do it.

2. Feed the Machine the Right Creative

PMax thrives on inputs. When creative is generic or misaligned with funnel stages, the system struggles. Use video and copy tailored to specific customer intent, not just brand sizzle reels.

3. Layer in First-Party Data

Utilize your CRM or customer match lists to inform your targeting strategy. The more data Google has about your actual buyers, the better it can optimize toward value, not just volume.

4. Set Guardrails with Offline Conversions

Hook PMax up to your actual sales data. When the campaign can optimize to downstream actions — not just clicks — ROAS becomes more honest and scalable.

Talking Points for the C-Suite

If you’re reporting on PMax performance to other execs, here’s how to stay in control of the narrative:

  • “PMax can scale efficiently when properly segmented and supported with first-party data.”

  • “We're not anti-automation. We're anti-blind spend.”

  • “We're evaluating this as a performance channel, not just a traffic driver, and we're applying CRO and analytics to maximize its output.”

Final Word: PMax Isn’t the Problem, Blind Automation Is

Performance Max can be a powerful part of your media strategy. But it’s not plug-and-play, and it’s definitely not “set it and forget it.”

If you’re not auditing, segmenting, and feeding it the right data, you’re likely overpaying for easy wins and missing the scalable growth that lies beneath.

Want to know if PMAX is hurting or helping your bottom line? Let's talk.

FAQs

What’s wrong with most PMax campaigns?
They lack segmentation and transparency, and are often over-reliant on branded or low-intent traffic, which inflates ROAS without driving real growth.

How can I tell if PMax is wasting spend?
Audit the campaign for branded traffic weight, high YouTube/Display frequency, and misaligned conversions (like low-quality leads).

Can PMax work for new customer acquisition?
Yes, but only when it's segmented properly, supported by first-party data, optimized for post-click outcomes, and closely monitored.

What’s the alternative to PMax?
Not a replacement, but a strategy: use segmented campaigns, smart exclusions, and offline conversion tracking to guide PMax toward true performance.

Is PMax worth it for enterprise brands?
Absolutely, but only if you treat it like a performance channel, not an automation shortcut. Without a strong PMax strategy, it becomes a black box that spends big and hides the receipts.