Smart Shopping vs Performance Max, this comparison matters more than ever for advertisers running Google campaigns. Google retired Smart Shopping in 2022 and replaced it with Performance Max. Yet many marketers still wonder how these campaign types differ and which approach works best for their goals.
This guide breaks down both campaign types. It covers how Smart Shopping worked, what Performance Max offers, and the key differences between them. By the end, readers will know exactly which strategy fits their advertising needs.
Key Takeaways
- Google retired Smart Shopping in 2022 and replaced it with Performance Max, making it the default choice for automated cross-channel campaigns.
- Performance Max covers more channels than Smart Shopping, including Search, Shopping, Display, YouTube, Discover, Gmail, and Maps.
- Smart Shopping vs Performance Max differs significantly in creative requirements—Performance Max needs multiple headlines, descriptions, images, and videos for optimal AI optimization.
- Performance Max introduces audience signals that guide the AI toward likely converters using customer lists, website visitors, or interest-based segments.
- Ecommerce brands benefit most from Performance Max due to Shopping placements combined with expanded reach across Google’s full inventory.
- Advertisers wanting more control can pair Performance Max with standard Shopping campaigns to protect top products while leveraging automation for broader reach.
Understanding Smart Shopping Campaigns
Smart Shopping campaigns combined standard Shopping campaigns with display remarketing. Google automated the bidding, ad placement, and targeting across multiple networks. These networks included the Google Search Network, Display Network, YouTube, and Gmail.
How Smart Shopping Worked
Smart Shopping used machine learning to optimize for conversion value. Advertisers set a budget and uploaded their product feed. Google handled the rest. The system pulled product images, titles, and prices directly from the Merchant Center feed.
The campaign type prioritized simplicity. Advertisers had limited control over audience targeting, bidding adjustments, or placement reports. This hands-off approach worked well for businesses that wanted automation without heavy management.
Strengths of Smart Shopping
Smart Shopping delivered several benefits:
- Easy setup: Advertisers needed only a product feed and conversion tracking.
- Cross-network reach: Ads appeared across Search, Display, YouTube, and Gmail automatically.
- Automated bidding: The system optimized bids to maximize conversion value within the set budget.
But, Smart Shopping had limitations. Advertisers couldn’t exclude specific placements or see detailed performance data by network. The lack of transparency frustrated marketers who wanted granular control.
The Sunset of Smart Shopping
Google phased out Smart Shopping campaigns between July and September 2022. All existing Smart Shopping campaigns were automatically upgraded to Performance Max. This shift pushed advertisers toward Google’s newer, more comprehensive automation solution.
What Is Performance Max?
Performance Max represents Google’s most automated campaign type. It accesses all Google advertising channels from a single campaign. These channels include Search, Shopping, Display, YouTube, Discover, Gmail, and Maps.
How Performance Max Works
Performance Max uses AI to find customers across Google’s entire inventory. Advertisers provide:
- Goals: Specific conversion actions they want to drive
- Budget: Daily or campaign-level spending limits
- Asset groups: Text headlines, descriptions, images, and videos
- Audience signals: Optional hints about ideal customer profiles
Google’s AI then tests different combinations of assets and placements. It identifies which combinations perform best for each audience segment.
Key Features of Performance Max
Performance Max offers capabilities that Smart Shopping lacked:
- Full-funnel reach: Ads appear at every stage of the customer journey.
- Asset-based creative: The system mixes and matches creative elements automatically.
- Audience signals: Advertisers can guide the AI with first-party data and custom segments.
- Insights reporting: Better visibility into search terms, audience segments, and asset performance.
The campaign type works especially well for ecommerce businesses. When connected to a Merchant Center feed, Performance Max functions similarly to Smart Shopping, but with broader reach and more features.
Key Differences Between Smart Shopping and Performance Max
The Smart Shopping vs Performance Max comparison reveals significant differences in reach, control, and reporting.
Channel Coverage
Smart Shopping covered four networks: Search, Display, YouTube, and Gmail. Performance Max adds Discover and Maps to that list. This expanded reach means Performance Max campaigns can find customers in more places.
Creative Requirements
Smart Shopping relied primarily on product feed data. It pulled images and text from the Merchant Center automatically. Performance Max requires more creative assets. Advertisers should provide multiple headlines, descriptions, images, and videos. The AI uses these assets to build ads suited for each placement.
Audience Targeting
Smart Shopping offered minimal audience controls. Performance Max introduces audience signals. These signals don’t restrict targeting, but they guide the AI toward likely converters. Advertisers can use customer lists, website visitors, or interest-based segments as signals.
Reporting and Transparency
Smart Shopping provided limited visibility into performance by channel. Performance Max offers improved reporting. Advertisers can see:
- Top-performing asset combinations
- Search term insights (though not complete)
- Auction insights for Shopping placements
- Audience segment breakdowns
The transparency gap hasn’t closed completely. Many advertisers still want more detailed placement and search term data from Performance Max.
Bidding Strategies
Both campaign types use automated bidding. Smart Shopping focused on maximizing conversion value. Performance Max offers the same goal, plus the option to optimize for conversions with target CPA or target ROAS constraints.
Which Campaign Type Should You Choose?
Since Google retired Smart Shopping, the choice is straightforward for new campaigns. Performance Max is now the default option for advertisers who want automated, cross-channel campaigns.
When Performance Max Makes Sense
Performance Max fits well for:
- Ecommerce brands: Product-based businesses benefit from Shopping placements plus expanded reach.
- Lead generation: Service businesses can use Performance Max with lead forms and conversion tracking.
- Advertisers with strong creative: More assets mean better AI optimization.
- Businesses with first-party data: Customer lists and website audiences improve audience signal quality.
Potential Drawbacks
Performance Max isn’t perfect for everyone. Some advertisers struggle with:
- Limited control: The AI makes most decisions about placements and bidding.
- Creative demands: The campaign type works best with diverse, high-quality assets.
- Attribution complexity: Understanding which channels drive results can be difficult.
Smart Shopping vs Performance Max: The Verdict
For advertisers who miss Smart Shopping’s simplicity, Performance Max can still deliver similar results. The key is setting up the campaign correctly. Use a product feed, set clear conversion goals, and let the AI optimize. Add audience signals and strong creative assets to improve performance over time.
Advertisers who want more control might pair Performance Max with standard Shopping campaigns. This approach lets them protect top-performing products while using automation for broader reach.
