Data shows that Google Search ads have a conversion rate of 5.2% on high-intent keywords, which is 2.3 times that of Performance Max ads; while the latter achieves a new customer share of 65% during new product launch periods. Choosing which ad type depends on your business objectives.
Ad Placement
According to Google official data, the average click-through rate (CTR) for Search ads is between 2%-5%, and Performance Max ads, due to cross-channel delivery, can increase overall exposure by more than 30%, but CTR varies significantly due to different display environments (0.5%-3%).
Search ads are only displayed when users actively search, precisely matching keyword intent, while Performance Max ads cover Google’s full channel network (Search, Display, YouTube, Gmail, Discover, Maps, etc.), using AI to automatically optimize delivery combinations.
For example, an e-commerce brand tested and found that Search ads’ cost per acquisition (CPA) is 15% lower than Performance Max ads, but the latter brings more new customers and increases brand search volume by 20%.
Performance Max Ad Placements
Performance Max ads use Google’s machine learning model to automatically select the best display locations, including:
- Google Search Network: Similar to Search ads, but advertisers cannot manually select keywords; AI automatically matches search queries based on product Feed and historical data.
- Google Display Network (GDN): Covers over 2 million websites and apps, such as news sites and blogs, with ads appearing as banners and native ads.
- YouTube: Displayed as pre-roll, mid-roll ads, or in-feed ads, suitable for brand awareness and retargeting.
- Gmail: Appears in users’ inbox under the Promotions tab, usually as collapsed ads that expand when clicked.
- Google Discover: Recommended in mobile users’ home screen feed, similar to social media content, suitable for visually appealing products.
- Google Maps: Local business ads may appear in map search results or navigation recommendations.
Due to extensive channel coverage, Performance Max ads typically have 50% higher exposure than single-channel ads, but CTR and conversion rates vary significantly due to different display environments. For example, YouTube ads’ average CTR is only 0.5%-1.5%, while the Search portion may reach 2%-4%.
A retail brand tested and found that Performance Max ads’ total conversions are 40% higher than single Search ads, but cost per acquisition (CPA) is also 20% higher, because some traffic comes from low-intent users (such as those viewing display ads or watching videos).
Impact of Placement on Ad Performance
The advantage of Search ads is precisely reaching high-intent users, suitable for conversion-oriented advertisers. For example, in high-value service industries like legal consulting and insurance, Search ads’ conversion rates are typically 30%-50% higher than Performance Max ads, because when users search for “divorce lawyer” or “car insurance quote,” their purchase intent is clear.
Performance Max ads are more suitable for scenarios requiring broad reach, such as new product launches, brand awareness, or retargeting. For example, a fashion brand tested Performance Max ads across all channels and found that YouTube and Discover contributed 35% of new customers, while Search ads mainly contributed direct conversions.
However, due to AI automatic optimization, advertisers have less control over placements and may not be able to fully avoid low-efficiency traffic (such as display ads on irrelevant websites).
How to Choose the Right Ad Type
- Prioritize Search ads: If target users have clear search behavior (such as “buy iPhone 15” or “moving services”), Search ads can precisely capture high-conversion traffic.
- Prioritize Performance Max ads: If you need to cover multi-stage users (from awareness to purchase) or have sufficient budget to maximize exposure, Performance Max ads are more suitable.
- Use in combination: Many advertisers use a “Search ads + Performance Max ads” strategy, with the former ensuring conversions for core keywords and the latter expanding new customers and brand awareness.
| Metric | Google Search Ads | Performance Max Ads |
|---|---|---|
| Primary Placements | Google Search Page | Search/Display/YouTube/Gmail, etc. |
| Average CTR | 2%-5% | 0.5%-3% |
| Average CVR | 3%-7% | 1%-4% |
| Suitable Scenarios | High-intent conversion | Broad reach, brand awareness |
Delivery Objectives
In the e-commerce industry, Search ads’ average conversion rate (CVR) is typically between 3%-7%, while Performance Max ads, due to covering multiple stages of the user purchase journey, have a slightly lower overall conversion rate (1%-4%), but can bring more new customers and brand awareness.
For example, an electronics brand tested and found that Search ads on the keyword “wireless earphone recommendations” have a CPA of20, but the latter contributed 35% of new customer traffic and increased brand search volume by 18%.
Google Search Ads Delivery Objectives
The core logic of Google Search ads is responding to users’ active search behavior, so their primary objective is direct conversion, such as sales, form submissions, or phone inquiries. According to Google Ads industry data, Search ads’ conversion rates in high-intent industries like finance, legal, and local services are significantly higher than other channels; for example, insurance keywords’ conversion rate can reach 5%-10%, while e-commerce keywords’ conversion rate is typically between 3%-6%.
Advertisers can optimize delivery by setting specific goals (such as cost per acquisition CPA or return on ad spend ROAS). For example, an educational institution set its CPA target at $30, and the system automatically adjusts bids to prioritize displaying ads to search users more likely to enroll in courses.
Search ads’ delivery objectives highly depend on keyword selection. For example, when users search “buy iPhone 15,” purchase intent is clear and ad conversion rate is high; while searching “iPhone 15 review,” users may be in the research phase with a lower conversion rate. Therefore, advertisers usually distinguish high-conversion keywords (such as “price” and “discount”) from low-conversion keywords (such as “review” and “comparison”) and allocate different budgets.
A retail brand tested and found that concentrating 80% of the budget on high-conversion keywords increased overall ROAS by 25%, while broad-match keywords brought more traffic but increased conversion costs by 40%.
Performance Max Ads Delivery Objectives
Performance Max ads’ objectives are more comprehensive, including brand awareness, new customer acquisition, and retargeting. It uses machine learning to automatically allocate budget across Google’s full channel network (Search, Display, YouTube, etc.) to achieve advertiser-set goals (such as conversion volume, ROAS, or new customer ratio).
For example, a clothing brand set the goal as “maximize conversion volume.” The system may allocate 70% of the budget to Search and Shopping ads (high-conversion channels) and 30% to YouTube and Discover (brand awareness channels), balancing short-term sales and long-term user growth.
Data shows that Performance Max ads’ new customer ratio is typically 20%-30% higher than Search ads, because YouTube and display ads can reach users who haven’t yet formed clear purchase intent. For example, a travel company found that YouTube ads contributed 15% of conversions in Performance Max, with these users typically needing multiple exposures before completing a booking, while in Search ads, 70% of converting users were first-time brand接触.
Performance Max ads are more suitable for industries requiring long-term user cultivation, such as luxury goods, automobiles, or B2B services.
Impact of Delivery Objectives on Ad Performance
Search ads are suitable for scenarios with clear conversion goals. For example, local service advertisers (such as “lock picking service” or “plumbing repair”) usually prioritize Search ads because users’ needs are urgent when searching, resulting in high conversion rates. Data shows that these ads’ conversion rates can reach 10%-15%, while Performance Max ads’ conversion rates may only be 2%-5%, because the latter contains a large amount of low-intent traffic (such as users browsing display ads).
Performance Max ads are more suitable for industries requiring multi-stage reach. For example, a cosmetics brand tested Performance Max ads and found that users whose first click came from Discover ads had an average conversion cycle of 7 days, while Search ad users’ conversion cycle was only 1 day.
The brand allocated 60% of its budget to Performance Max ads for nurturing potential users and 40% to Search ads for capturing high-intent traffic, ultimately increasing total sales by 35%.
How to Choose the Right Ad Type
- Prioritize Search ads: If the goal is rapid conversion (such as promotions or limited-time offers) or the industry relies on high-intent keywords (such as “lawyer” or “insurance”), Search ads are more efficient.
- Prioritize Performance Max ads: If brand awareness, new customer acquisition, or multi-channel synergy is needed (such as e-commerce or travel), Performance Max ads provide broader coverage.
- Use in combination: Many advertisers use a “Performance Max ads + Search ads” strategy, with the former for broad reach and the latter for precise conversion. For example, a home appliance brand used Performance Max ads to increase brand awareness, then used Search ads to capture “brand + product” keywords (such as “XX brand refrigerator price”), increasing conversion rate by 40%.
| Metric | Google Search Ads | Performance Max Ads |
|---|---|---|
| Core Objective | Direct conversion | Conversion + Awareness + New customers |
| Average Conversion Rate | 3%-7% | 1%-4% |
| New Customer Ratio | 20%-30% | 40%-60% |
| Suitable Industries | High-intent services (legal, finance) | E-commerce, brand advertising |
Ad Formats
Data shows that standard text Search ads’ average click-through rate (CTR) is 2.1%, while expanded text ads with additional information can increase CTR to 3.5%. Performance Max ads, due to integrating multiple ad formats, have an average CTR of 0.8% in the display network, but YouTube video ads can achieve a 45% view completion rate.
An e-commerce platform A/B test showed that using Performance Max ads increased overall conversion volume by 28%, with Shopping ads contributing 62% of conversions and video ads bringing 18% of new customers. Search ads’ average loading time is 0.8 seconds, significantly faster than Performance Max display ads’ 1.5-second loading time.
Main Search Ad Formats
Search ads are centered on text content, with each ad containing 3 headlines (30 characters each) and 2 descriptions (90 characters each). According to 2023 Google Ads benchmark data, using all 3 headlines results in 22% higher CTR than using only 2 headlines.
Ad extensions can expand ad area by up to 50%, with sitelinks having the highest adoption rate (78% of advertisers use them), increasing CTR by 15-20%.
Structured snippets can highlight key service information (such as “24-hour service” or “free consultation”). A legal service firm tested and found that adding structured snippets increased conversion rate by 31%.
Search ad extension features include:
- Call Extension: Suitable for local services, increasing mobile calls by 40%
- Location Extension: Increasing store visits for offline store ads by 25%
- Price Extension: Increasing CTR for e-commerce ads by 18%
- Promotion Extension: Limited-time offer information display increasing conversion rate by 22%
A retail brand comparison test found that ad groups using all 5 extension features had 27% lower cost per click (CPC) than basic ads and 35% higher conversion rate. However, note that too many extensions may cause mobile ads to collapse; best practice is to control within 3-4 extension types.
Performance Max Ads’ Diverse Formats
Performance Max ads require advertisers to provide at least:
- 5 images (recommended 1200×628 pixels)
- 5 headlines (30 characters each)
- 1 long description (90 characters)
- 1 video (optional but recommended)
The system automatically combines these assets to adapt to different display scenarios. Data shows that ad groups with video assets have 40% higher conversion rate than image-only groups. In the display network, responsive display ads account for 65% of Performance Max ad impressions, and their automatic layout adjustment feature can increase CTR by 15-30%. Shopping ads contribute 55% of conversions for e-commerce customers in Performance Max, and the completeness of product detail pages (including 8+ product images) can increase conversion rate by 28%.
Video ads perform well in Performance Max:
- 6-second pre-roll ads have a 68% full view rate
- 15-second skippable ads have an average view time of 12 seconds
- In-feed video ads have a CTR of 1.2-2.5%
A car brand case study showed that simultaneously running a 3-minute full version video and a 15-second condensed version video increased brand search volume by 33% and test drive appointments by 21%.
Impact of Format Differences on Performance
The advantage of Search ads is efficient information delivery. Tests show that users process text ad information in an average of 2.3 seconds, while understanding image-text ads takes 3.5 seconds. In industries requiring precise information delivery like finance and legal, text-only ads have 18% higher conversion rate than image-text ads. But text ads have limited creative space, A/B testing shows that text ads optimized to the extreme have a CTR improvement ceiling of approximately 25%.
Performance Max ads have obvious visual advantages:
- Images containing people have 22% higher CTR than product images
- Dynamic product displays have 35% higher conversion rate than static images
- Multi-image carousel ads increase user dwell time by 40%
A travel platform tested and found that ads in Performance Max containing real tourist photos have 28% higher booking rate than landscape photos, while image-text combinations with price information have 31% higher conversion rate than image-only ads.
Best Practices for Asset Creation
Search ad copy optimization tips:
- Headlines containing keywords increase CTR by 23%
- Using specific numbers in descriptions increases CTR by 17%
- Clear call-to-action language increases conversion rate by 15%
- Updating copy every two weeks keeps performance at its best
Performance Max ad asset suggestions:
- Simple image backgrounds with subject occupying 60% of the frame
- Brand logo visible in the first 3 seconds of video
- Product images showing 3 or more usage scenarios
- Consistent style across all assets
A home appliance brand following these guidelines saw ad relevance score increase from 6.2 to 8.4 and cost per acquisition decrease by 22%.
Cross-Platform Display Differences
Search ads’ mobile performance:
- Occupying more than 50% of above-the-fold visual space
- Call button usage rate of 63%
- 35% higher collapse rate than desktop
Performance Max ads’ cross-platform performance:
- Mobile in-feed ad CTR of 1.8%
- Desktop display ad CTR of 0.6%
- 25% higher video ad completion rate on tablets
Data shows that Performance Max ads optimized for mobile (vertical video + concise copy) have 40% higher conversion rate than universal versions.
Control Level
Search ads provide 15 manually adjustable dimensions (including keywords, bids, delivery schedule, etc.), while Performance Max ads have only 5 main control options.
An e-commerce platform test found that experienced optimizers could reduce conversion costs by 23% through fine-tuned Search ads control, while Performance Max ads under the same budget, relying on automatic optimization, only reduced costs by 12%.
Regarding delivery schedule control, Search ads allow hour-level scheduling, increasing office-hours delivery efficiency by 35% for a B2B company; Performance Max ads use a “learning period” mode, and during the first 2 weeks of algorithm optimization, conversion costs are typically 18-25% higher than during stable periods.
Search Ads Control Dimensions
Search ads provide advertisers with three levels of control: campaign, ad group, and keyword. At the keyword level, advertisers can:
- Choose exact match, phrase match, or broad match modes (data shows exact match has 42% higher conversion rate than broad match)
- Set individual bid adjustments (range of +-90%)
- Add negative keywords (an average of 15-20 per ad group)
Campaign-level controls include:
- Daily budget (minimum $10)
- Network selection (Search network or Display network)
- Device bid adjustments (mobile is typically 15-20% higher than desktop)
- Geographic targeting (can be precise to within 5 km radius)
A local service provider increased effective inquiry volume by 55% and reduced invalid clicks by 38% by setting the combination of “business hours + 3 km radius + mobile priority.”
Search ads also allow advertisers to manually adjust:
- Ad rotation (prioritizing high-CTR ads)
- Audience exclusions (can exclude users who converted within 30 days)
- Ad extension combinations (up to 4 extensions displayed simultaneously)
Performance Max Ads Control Logic
Performance Max ads use a “goal-oriented” control mode where advertisers mainly set:
- Daily budget (minimum $15)
- Conversion goals (such as purchase, registration, etc.)
- Target CPA or ROAS values
- Asset groups (at least 5 images + 5 headlines)
The system automatically decides based on these inputs:
- Channel allocation ratios (Search/Display/YouTube, etc.)
- Specific placements
- Creative combinations
- Real-time bidding strategies
Data shows that during Performance Max ads’ first 14-day learning period, advertisers can only make limited adjustments:
- Daily budget changes no more than 20%
- Asset updates take 48 hours to take effect
- Target value adjustments require more than 3 days between changes
A fashion brand case showed that premature intervention in the learning period (3 target ROAS changes within 7 days) caused the algorithm to reset, increasing conversion costs by 31% in the following 2 weeks. Performance Max ads’ audience control primarily uses:
- Customer Match lists (uploading existing customer data)
- Similar audience expansion (system automatically expands 3-5x)
- Retargeting lists (30/60/90 day layers)
Impact of Control Level on Performance
Search ads’ fine control is suitable for the following scenarios:
- Businesses with clear time patterns (such as restaurant ads having 40% higher efficiency during 11am-1pm)
- Industries requiring strict exclusion of invalid traffic (legal consulting increasing conversion rate by 28% after adding negative keywords)
- Professional optimization team operations (optimizers with 3+ years experience can improve performance by 35%)
Performance Max ads’ automation advantages are reflected in:
- Cross-channel budget allocation (system automatically allocates 65% of budget to high-efficiency channels)
- Real-time bid adjustments (processing millions of bidding signals per hour)
- Creative automatic optimization (dynamically combining optimal asset combinations)
A travel platform comparison test showed:
- Manually optimized Search ads group: ROAS 4.2
- Performance Max ads group: ROAS 3.8
- But the latter saved 80% of manual operation time
Advanced Control Features
Search ads’ advanced control techniques include:
- Per-device bid strategies (mobile +20%, desktop -10%)
- Time-of-day bid adjustments (weekends +15%, weekday nights -30%)
- Geographic layering (core business districts +25%, suburbs -15%)
- Audience overlap management (excluding converted users)
An electronics retailer saw ad spend efficiency increase by 42% after using these techniques. Performance Max ads’ optimization methods primarily include:
- Asset layered testing (updating 30% of assets every 2 weeks)
- Gradual target value adjustments (no more than 15% per change)
- Product feed optimization (attribute completeness >90%)
- Conversion event weight settings (high-value conversions +20%)
| Control Dimension | Search Ads | Performance Max Ads |
|---|---|---|
| Keyword Control | Full control | Can only influence indirectly through feed |
| Bid Adjustments | Manually set for each keyword | System automatic optimization |
| Placements | Can exclude specific websites | Fully automated |
| Creative Combinations | Fixed ad copy | Dynamically combine multiple assets |
| Learning Curve | Can master basics in 1 week | Requires 2-3 week observation period |
Applicable Scenarios
Search ads have an average conversion rate of 5.2% in high-purchase-intent scenarios (such as “insurance quotes” or “lawyer consultation”), which is 2.3 times that of Performance Max ads; while Performance Max ads reach 60% more users during new product launches than Search ads, and increase brand search volume by 40%.
A 3C brand A/B test showed that during promotional periods, Search ads’ ROAS was 4.8 while Performance Max ads was 3.5; but during new product launches, Performance Max ads brought 65% new customers, while Search ads only brought 35%. Industry data shows that B2B businesses’ customer acquisition cost with Search ads is 42% lower than with Performance Max ads, while FMCG e-commerce’s comprehensive customer acquisition cost differs by only 12% between the two.
Best Applicable Scenarios for Search Ads
Search ads excel in the following three types of scenarios:
Immediate Need Services
- Local services (such as “lock picking” or “pipe repair”) can have conversion rates of 8-12%
- Business hours targeting increases effective inquiries by 55%
- Radius targeting (3-5 km) increases store visits by 30%
A housekeeping platform’s data showed that ads with “immediate service + 2-hour response” keywords had 28% lower conversion cost than regular services.
High-Value Decision Products
- Financial products (loans/insurance) keyword conversion rate of 4-7%
- B2B services (enterprise software/equipment) inquiry cost is 35% lower than Performance Max
- Adding call extensions increases B2B sales lead quality by 40%
Brand Defense and Harvesting
- Competitor keyword ads have 2.1x higher conversion rate than Performance Max
- “Brand + discount” keywords can achieve ROAS of 6-8
- Brand keyword ad CTR is typically 8-15%
A car brand case showed that ads targeting “competitor brand + test drive” keywords increased test drive appointments by 25% and reduced per-customer cost by 33%.
Advantage Scenarios for Performance Max Ads
Performance Max ads excel in the following areas:
New Product Launches
- First-month new customer acquisition ratio reaches 60-75%
- YouTube video ads contribute 35% of brand awareness
- Discover channel brings 20-30% of unexpected demand
A beauty brand launch period data:
- Search ads: ROAS 3.2, new customer rate 38%
- Performance Max: ROAS 2.8, new customer rate 62%
E-commerce Full-Channel Sales
- Shopping ads account for 55-65% of conversions
- Dynamic retargeting ads increase abandoned cart recovery rate by 40%
- Cross-device tracking makes conversion attribution more complete
Long-Term Brand Building
- 6-month campaign increases organic search volume by 50-80%
- Video ad frequency control (3-5 times/user) is optimal
- Display ads increase visual memory by 60%
Industry Application Analysis
E-commerce Retail
- FMCG: Performance Max ads get 60% of budget, Search covers brand keywords
- High-unit-price products: Search ads get 70%, Performance Max for retargeting
- Promotional periods: Search ads ROAS is 35% higher than usual
B2B Services
- Solution sales: Search ads customer acquisition cost is 40-50% lower
- Long sales cycles: Performance Max nurture leads increases close rate by 25%
- Industry event periods: Search ads budget increases by 50%
Local Services
- Emergency services: 100% Search ads, conversion rate 8-15%
- Appointment-based services: Performance Max gets 30% budget for brand awareness
- Multi-store chains: Geographic targeting increases store visits by 45%
Budget Allocation Strategies
New Brand Launch Period
- Months 1-3: Performance Max gets 70%, quickly building awareness
- Months 4-6: Adjust to 50%:50%, balancing conversion and awareness
- Stabilization period: Search 60%, Performance Max 40%
Promotional Periods
- First 2 weeks: Performance Max gets 60%, expanding audience
- Week of event: Search ads increase to 70%, capturing high-intent traffic
- Last 2 weeks: Performance Max gets 80%, clearing inventory
B2B Companies
- Search ads: 80% budget for precise keywords
- Performance Max: 20% for industry media retargeting
- LinkedIn audience targeting increases decision-maker reach by 35%
| Metric | Search Ads | Performance Max Ads |
|---|---|---|
| High-intent Conversion Rate | 5-12% | 2-5% |
| New Customer Acquisition Ratio | 30-45% | 55-70% |
| Brand Search Increase | 15-25% | 35-50% |
| Optimization Response Speed | Immediate adjustments | Requires 2-week learning period |
| Average Creative Production Cost | $200-500 | $800-1500 |
In most cases, combining both works better
