Free Download: The Performance Max Standard Operating Procedure

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We have created a standard operating procedure for performance max.

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And when I say we, I mean, John really John has created

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a, an SOP for performance max.

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I'm so excited about this.

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I think it's a massive, big gaping hole in the industry.

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Uh, as of yet, there's really no scaffolding around the

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decisions that you're making.

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Um, so we wanted to share this with the world, um, with the obligatory

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disclaimer, and you already know what it is, I'm gonna say, but I'm gonna

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say it anyway, because if I don't, I still get the comments or, you know,

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we get our feet held to the fire.

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Like, well, you, you promised, um, this is, this is a set of

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guidelines that should be viewed as very, very loose recommendations

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that are meant to be broken.

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As often as not depending on your industry, competitive market, et cetera.

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So, uh, this is not gospel.

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This is just a, when in doubt, set of guidelines.

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Um, and, and, uh, I'm gonna reference the dis this disclaimer often.

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I, I feel, but I I've gotten it out.

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So, uh, oh, I guess the other thing that I should say is this is probably gonna.

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30 days ago, we were telling everybody start with maximize conversions today.

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We're telling everybody start with maximize conversion value it's because

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we learned it's because we learned when we were saying start with maximize

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conversions it's because the campaigns that we use maximize conversions, uh,

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with were more successful, faster, but then we realized that long

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term the optimization was limited.

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So.

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You know, now it's a question of, well, do I need to prove concept quickly

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or do I want to optimize over time?

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And because we're an agency that's working towards customer retention, we

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wanna optimize over time, but that's a good example of, you know, there's

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other things that we might be doing.

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Um, now that we could find out, you know, days, weeks, months, years

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from now, our , we might recommend, uh, uh, an alternative for.

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So, um, I, I ask for your grace.

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All right.

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That's enough.

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Um, here's the beginning of the standard operating P.

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Every performance max campaign is gonna be built with, uh, this

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general set of guidelines and I'll go through them in sequence.

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The very first one is how do I separate my asset groups?

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That's how that's, you know, one of the big questions that we get asked

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all the time for us, it's by product or service category, um, for lead generation

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service category, obviously, but for, for e-com, uh, you're gonna separate

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your asset groups by product category.

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This is just the most obvious it's the most basic, it's the easiest thing to do.

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Um, it requires the least amount of thought and most.

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most businesses already have their product categories defined and delineated.

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So it allows us to kind of like live into their presence and existing structure.

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Um, and that's not, you know, that's helpful not just with product categories

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and, and you know, their, the, the tree that they have built, um, you know,

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their, their supposed product site.

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It's also helpful because they generally, uh, separate their media and assets and,

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and marketing materials that way too.

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So, uh, separate asset groups by product categories.

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Now here's where things get interesting.

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You're gonna replicate the asset groups by each distinct

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and applicable audience signal.

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So if you have five product categories and five audience

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signals, you have 25 asset groups.

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Here's what that means.

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If you're selling shoes, which is one of John's favorite examples, um,

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one audience signal might be, um,

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Let's say you you're selling shoes and, and you have, uh, dressed shoes for,

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uh, people that are going to a wedding.

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Um, so you've got wedding shoes.

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Are there wedding shoes?

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There are for this example, uh, the audience signal here.

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If you were to do an InMarket, uh, audience for people who are shopping

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for wedding dresses, a separate audience signal, wouldn't be somebody

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who's visited the David bridals.

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Those would be potentially in theory, the same audience signal, depending

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on how granular you want to go.

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And then a subsequent audience signal, um, again on shoes might be people

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who are, uh, in the job market.

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You know what I mean?

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Like you're gonna, you're gonna choose audience signals and make sure

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that they're distinctly separate.

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So the way that you're targeting the audience signal can be bundled inside of

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a separate inside of the same asset group.

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Um, and then you're gonna separate the audience signals thematic.

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and then you're gonna take every audience signal that applies to

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all of your product categories.

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So, you know, maybe you have.

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Towed shoes, high heeled shoes, uh, big and tall shoes or whatever.

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And you're like, all right, do all of these apply to people?

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Go into weddings.

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Yes.

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Cool.

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I've got, um, you know, that's, uh, all five of these are replicated one

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time for that, uh, audience signal.

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And then I move on to my next audience signal.

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I hope that made sense.

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I bumbed through that, but I think I got there.

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Um, you're gonna have a combined asset group, which has all of your

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products to all of your signals.

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This is where we're going.

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Google, give me all the data you.

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Give me everything.

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Um, and then you're also gonna have a combined asset groups to

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where you're gonna have all of your products to each individual signal.

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So, and we wanna play this all product game because you wanna see, uh, you

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wanna see what the cross pollination looks like on a signal and product basis.

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Now you might run out of asset groups and if that's the case, you now have to begin

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making some hard decisions as to which product categories and which audience

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signals you think are most viable.

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And, and that's the way to do it.

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Build a hierarchy.

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And to be honest with you, Guess guess it, it, you know.

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Okay.

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Well, I think we're, you know, the, the, the, the wedding

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shoes have real high margin.

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I'd love to see if we can make that work awesome.

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But my hiking boot super low margin, and, you know, we're

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not very competitive there.

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So I might deprioritize that in a couple of different places.

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Um, We're always gonna turn final URL expansion on, unless you have

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extreme cases, uh, or, or a very strong reason not to do this.

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However, within final URL expansion, don't forget to exclude URLs that

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for whatever reason you don't think, um, should capture traffic.

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I'd be very careful there.

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I have another video on final URL expansion to the fact that we're

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converting off of URLs and I never expected to convert off of a B.

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and we can't, we can't see this in Google ads, but you can kind of

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piece it together with analytics.

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You see pages that aren't conversion pages that, that feel dangerous word to use

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in a data driven environment that feel like they contribute to the conversion.

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So testimonials case studies about us, mission, vision values, giving back those

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types of pages where, okay, they're not converting off of that page, but gosh,

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it sure feels like on my conversion path, people that land on those pages

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are more likely to convert later.

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So I would, I would caution you against.

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Being too aggressive with your UL exclusions, but don't forget to use 'em.

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Um, we're gonna use maximize conversion value and you're not gonna have a

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TRO as there's an exception to this.

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Google told us recently that if you apply no TRO as the system automatically

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applies a TRO as of 200%, which is really frustrating by the way.

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And also very stupid.

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Um, if I wanted a 200.

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TRO as, and I would've applied it 200% TRO as if your TRO as is under 200%.

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And then I were talking to a client about this yesterday.

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They have a break, even target.

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They're like, look, if you can go one to one, um, we're in great shape,

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cuz their retention is so strong.

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So if your TRO as is under 200% set a TRO as if it's not set, no TRO as you're going

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to be spending it efficiently on purpose.

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You're gonna spend four to six weeks potentially longer,

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possibly overinvesting inside of this market, but this is the only way that

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Google's gonna go figure out what product categories work with, what asset groups.

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So realize that you're not spending here to buy customers.

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You're spending here to learn and, um, it's funny because that, that was a

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pretty consistent narrative in old school advertising radio, television newspaper.

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It was, yeah, we're gonna do the first season is gonna figure out, you

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know, what, what placements workforce and the second season will, we will

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get a little bit more efficient.

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We've been spoiled by digital marketing and, and we're kind of back there now.

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So this is, this is, so this is a pill we've all had to swallow in the past.

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Not that any of us were alive back then, but you know what I mean?

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Um, humanity has had to contend with this before.

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Uh, you're also gonna include all product.

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Unless there are potential fulfillment issues.

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That's the one big caveat.

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If you ever think you're gonna run outta something, PAX is a scale machine.

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Don't.

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Teach Google how to sell something.

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You're not gonna be able to sell it kills campaigns.

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It's such a nightmare.

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And you know, it's funny cause I bring this up on sales conversations.

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I'm like, all right, so no fulfillment issues at all.

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Like, oh gosh, as much as you can sell, we can get a lot of hoorah.

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And then all of a sudden we start selling stuff and I'm

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like, Hey, we ran out of product.

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Skews am four and nine.

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And it's just like, well, we talked about this and you lied to me.

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So these are the best practices again.

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mild suggestions, by the way, they're all in one PAX campaign.

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I guess I haven't said that because it's sort of implied.

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We're not separating PAX campaigns, we're using one PAX campaign.

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And then there's a reason to separate PAX campaigns later.

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Let me move my face.

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Now you are going to build this and you are going to run it for six

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weeks, plus whatever the client's time lag is or whatever your time lag

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is, if you don't know your time lag.

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then you don't know what this number is, and you're just gonna have to figure that

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out on the heels of performance, max.

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So if you're a brand new, uh, advertiser, then I don't even wanna tell you to guess,

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because it's pretty difficult to determine many instances, but, um, if you run.

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campaigns prior to especially smart shopping, uh, because performance

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max and smart shopping operate in similar ecosystems in terms of their

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multichannel distribution, then your time lag instead of smart shopping,

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I think should be pretty analogous to your time lag instead of performance.

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Max, I don't have data to tell you that that, that they're, you know,

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pair pursue, but I'm just kind of assuming that that's the case.

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So take six weeks plus your time.

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Plus your performance timeline.

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Uh, this is especially true for lead generation, but can

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be true for high ticket econ.

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You know, we've got somebody in the medical device space and they

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have $30,000 medical devices.

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People don't buy those right outta the gate, you know, it's six weeks

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to, uh, allow the campaign to.

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to learn, reach stasis, and then you have to wait the time lag period, because the

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time lag is the amount of time it takes for, um, uh, the marketing endeavor to

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start showing what it can, what, what happened in the past to come to fruition

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and then your performance timeline.

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Here's what this means.

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If you're not a little scared of this, by the way, then you're not paying attention.

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We're gonna, this has never been the case with Google ads ever.

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We're gonna build it.

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We're gonna launch it.

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We're not gonna touch it for what could amount to, for some advertisers months.

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Yikes.

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I'm telling you, we have a dozen, some odd case studies now showing

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that this is necessary and the people that want to go play tinker, tinkerer,

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tinker bell, the people who wanna go play tinker bell are gonna are.

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You just reset, learning you kill PAX.

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Um, you have to let it be, I wanna sit here and just stew in that message.

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You have to let performance max learn.

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You have to let it be.

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Um, every time you make a change, it resets everything and, and that's only,

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that's not entirely true, but it's, it's worth believing that it is true.

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Um, I've heard it said that, you know, I, I don't believe in God, but

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no matter what I act as though he exists because regardless of whether

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or not he does exist, it's just good for me to, to act in a fashion.

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Uh, that keeps me right with the world as extreme as that example is, that's the

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way I want you to look at performance max, you make a change, it resets learning.

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Um, the other thing that I'll say before I move on is the amount of money you spend.

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is gonna be dictated by the amount of product categories.

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You have, the amount of audience signals you're targeting and

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how competitive your market is.

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And there's no way for me to tell you what that is.

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Um, if you've been running Google ads in the past, you

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probably have a pretty solid.

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And that probably will carry over from all the campaigns that

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performance max is gonna steal from.

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If you have it, you're gonna have to go figure that out.

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It's a hundred dollars a day at a minimum, but a hundred dollars a day,

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probably isn't enough to support 25 asset groups in a competitive market.

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So you, you're gonna start to see, you know, where you're making a

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splash and where you're not at all.

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So you build a performance, max, you follow these SOPs.

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You wait this amount of time, which by the way, I would love for any of you SP

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for, for those of you, who've actually been successful with performance,

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max, you arm, chair, theorists.

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I don't care what you have to say.

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The people that have been successful with performance max, I'd like to

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see if you disagree with any of this.

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This is a set of logical and educated assumptions based off of what all of

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our strategists cm specialists have said combined with John's leadership.

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And this is the output, which is pretty solid by the way, we have $54 million.

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In ad spend under management.

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And most of it now is headed in the performance max direction.

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So I think we have a lot of data, but I I'm still interested in

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being informed by other people on the outside because some of this

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could very, just be self fulfilling prophecy, echo, chamber, whatever

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this is the best we can do for now.

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Now you've run your PAX campaign.

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You've waited the adequate time.

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Super important.

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You've waited the adequate time now, what do we do if, and I'll actually

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start from the right and move to the left because it gets more.

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if you're not meeting your Roaz goals, uh, which it, which

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case the budget is negligible.

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Um, if you're not meeting your Roaz goals, then you need to figure out why.

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And this feels very passive aggressive, but the problem here

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y'all is there's no S O P for this.

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there can't be.

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If there was, I wouldn't have a job, like we wouldn't have an agency,

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there's a hundred billion reasons why this could potentially be the case.

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Um, and, and a lot of 'em aren't even in the Google ads ecosystem,

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like it could be on site issues, um, visibility, competition pricing,

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uh, go to market strategy messaging.

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So if you're not meeting your Roaz goals after having waited

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the adequate timeline, um, then.

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you need somebody who actually knows what the hell they're

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doing to review and diagnose.

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It might mean cuz performance max can fail.

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It might mean that you just need to lean into more traditional campaign types.

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Now,

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one of the questions that I got when I presented this to we'll call it a sounding

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board was, well, if I'm not meeting my RO as goals, I don't have a TRO as applied.

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So can I just apply the TRO as you sure can.

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That's after you're learning, um, after you're learning.

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So once applying T RO as if you're still not meeting a RO as goals, now

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we need review and diagnosis and then lean into more traditional campaigns.

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If you're meeting a RO as goals, but you're not meeting the budget,

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you come down and do this.

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First you're gonna clone the entire PAX campaign.

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This is gonna get real counterintuitive by the way, we had a bloody

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nerd war internally over this.

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Uh, you're gonna clone the entire PAX campaign in the new PAX campaign.

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You're gonna shut off all non-performing asset groups.

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So the new PAX campaign only becomes your top performers in the old PAX campaign.

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You're gonna shut off all of your performers.

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This was the thing.

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That scared the daylights out of everybody is, well, wait a minute,

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I have a campaign that's working.

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I'm gonna take everything out of the campaign.

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That's working and only turn on the things that aren't working.

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And then I'm gonna create this new campaign with the things that are working.

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But it stands to reason that because we've all seen this maybe only a

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billion times, uh, even when all things are equal, for whatever

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reason, those campaign types aren't necessarily treated as other equals.

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So that was the fear.

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We've tested it both ways.

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And the new campaigns with the performing assets.

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perform better while the old campaigns with the non-performing assets actually

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perform better with the old campaigns.

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And let me tell you why.

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I think this is, this is highly speculative by the way.

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And I'm an idiot and I don't know what I'm talking about,

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but this is just my best guess.

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I think if you take the old campaign that the original

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campaign, all the performing assets.

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are the performers cuz they're they're the lowest hanging fruit.

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So this old campaign went, tried against, you know, tried all of the asset groups,

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all the audiences, all the product categories figured out what worked

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and was able to make those work well.

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When you turn those off, the original campaign has still has a wealth of

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data and still made a bunch of attempts against the non-performing assets.

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So it's ability to make those assets perform greatly outpaces a brand new

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campaign with the non-performing assets.

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So this isn't about the performing assets.

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So far, what we've seen is they perform just as well in a clone campaign with

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everything else removed even better because they have dedicated budget.

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This is about your non-performing assets.

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If you want your non-performing assets to perform, then take away their big

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brothers, the, the, the assets that are performing even better, because

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they're the ones that are eating up all of the, all of the budget.

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I hope that makes sense.

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That's a theory.

Speaker: 00:17:22

I think it's a pretty good one, but it's just a theory.

Speaker: 00:17:24

So, um, new campaign.

Speaker: 00:17:29

Shut off all non-performers old campaign.

Speaker: 00:17:31

Shut off all performers and you have now effectively PAX sculpt.

Speaker: 00:17:37

Uh, one really quick note in your fire final URL expansion for both

Speaker: 00:17:41

campaign types, you're gonna turn off all of the pages that apply to

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the products that have been removed from each of the PEX campaigns.

Speaker: 00:17:48

So the new campaign is gonna have all of the pages for that applied

Speaker: 00:17:52

to any of the old, uh, uh, campaign products removed and vice versa.

Speaker: 00:17:57

Um, you wanna make sure that you're your.

Speaker: 00:18:01

keeping these things separate and from being incestuous.

Speaker: 00:18:04

And you're gonna do that until you're RO as is you're meeting your RO as,

Speaker: 00:18:08

and you're meeting your budget, which incidentally is the, the third thing that

Speaker: 00:18:11

could happen from a brand new campaign.

Speaker: 00:18:13

If you're meeting RO as, and you're meeting budget,

Speaker: 00:18:18

drum roll, don't touch it.

Speaker: 00:18:20

Stop don't touch anything.

Speaker: 00:18:23

It's a crazy, don't mess with a good thing.

Speaker: 00:18:26

Cause everybody's like, oh my gosh, we're making a bunch of money.

Speaker: 00:18:28

What do we do?

Speaker: 00:18:28

And the.

Speaker: 00:18:29

not a damn thing.

Speaker: 00:18:30

We're gonna sit and we're gonna watch it now.

Speaker: 00:18:32

Are there.

Speaker: 00:18:33

Optimizations that can be made.

Speaker: 00:18:34

Yes, of course.

Speaker: 00:18:35

Absolutely.

Speaker: 00:18:37

A lot of 'em are actually in campaign types outside of performance.

Speaker: 00:18:40

Max, you can start to see like, oh gosh, you know, this is working

Speaker: 00:18:43

here and this is working there.

Speaker: 00:18:44

I'm gonna build a search campaign in order to push PAX more to search.

Speaker: 00:18:47

Um, there it's really fun when you get there, but in the very

Speaker: 00:18:50

beginning, you're gonna optimize yourself out of performance.

Speaker: 00:18:54

So don't touch anything, uh, unless you really know what the hell you're doing,

Speaker: 00:18:58

which really means that you're us.

Speaker: 00:19:00

Uh, More aggressive than I meant for it to be, but hopefully y'all know what I mean.

Speaker: 00:19:06

Um, you can sculpt lower performing asset groups.

Speaker: 00:19:09

Very, very, very, very, very carefully.

Speaker: 00:19:11

A lot of that is media, uh, copy imagery offer.

Speaker: 00:19:17

So there, there is some optimization to be had, but be real careful if you got a

Speaker: 00:19:19

PAX campaign and all this is the things we've seen this happen, we've seen it to

Speaker: 00:19:23

where it's like, oh, PAX is killing it.

Speaker: 00:19:25

And then.

Speaker: 00:19:26

The client comes in and starts pressing buttons, and then they tank it.

Speaker: 00:19:29

Uh, we have one client in particular and this is funny.

Speaker: 00:19:32

Uh, I'll go big for this one, one client in particular, we built

Speaker: 00:19:36

a performing high performing PAX campaign for, and their Google rep.

Speaker: 00:19:40

Their dedicated Google rep came out and said, Hey, we should.

Speaker: 00:19:44

And we were like, no, we don't wanna do that.

Speaker: 00:19:46

And then they convinced the client to do it killed performance.

Speaker: 00:19:48

We brought it back, had to backtrack, redo everything that we did brought it back.

Speaker: 00:19:51

And then their dedicated Google rep had another.

Speaker: 00:19:55

And then we said, no, let's not do that.

Speaker: 00:19:56

And then they did it and it killed performance.

Speaker: 00:19:58

We brought it back.

Speaker: 00:20:00

Third time won will be the charm.

Speaker: 00:20:01

The client now understands that the Google reps.

Speaker: 00:20:03

not all they're cracked up to be.

Speaker: 00:20:06

Uh, you know, I, I I'm pretty mean on the Google reps.

Speaker: 00:20:08

It's, it's those, it's the lower level ones.

Speaker: 00:20:10

Some of the high level Google folks are freaking the

Speaker: 00:20:12

smartest people I've ever met.

Speaker: 00:20:13

Now, if you have, if you're meeting rows and you're meeting

Speaker: 00:20:17

budget and you want to increase your budget, you have two options.

Speaker: 00:20:21

Uh, it's based off of how much budget increase you, you, you plan on doing so.

Speaker: 00:20:27

Are you more or less than 50% of your daily spend?

Speaker: 00:20:31

Um, If you were less than 50% of your daily ad spend, then you have a maximum

Speaker: 00:20:37

of one budget increase every two weeks.

Speaker: 00:20:41

If you're more than 50% of your daily ad, spend a maximum of one

Speaker: 00:20:44

budget increase every four weeks.

Speaker: 00:20:46

We're spreading this out.

Speaker: 00:20:48

Google.

Speaker: 00:20:49

In writing has said, we can take any amount of addin ad spend increase.

Speaker: 00:20:54

This is a lie.

Speaker: 00:20:56

This is a boldface unadulterated in capitals with underlying lie.

Speaker: 00:21:01

And it's shocking to me that it's, I I'll try to find a link if I can.

Speaker: 00:21:06

Um, it's crazy that they'd even say that this is how you increase

Speaker: 00:21:09

budget, increase in weight, increase in weight, increase in weight.

Speaker: 00:21:13

And then at a certain point what's gonna happen is you're gonna find.

Speaker: 00:21:19

here, you're meeting raw.

Speaker: 00:21:21

You're not meeting budget.

Speaker: 00:21:22

And then you scroll down and you do this, and then it gets very cyclical.

Speaker: 00:21:26

Um, which I actually kind of like, it means the whole damn

Speaker: 00:21:28

thing kind of makes sense.

Speaker: 00:21:29

So this is what it looks like, zoomed out.

Speaker: 00:21:32

Um, I'll include a link to this somehow.

Speaker: 00:21:36

And.

Speaker: 00:21:38

I hope that this is helpful.

Speaker: 00:21:40

I imagine this is gonna be very iterative and I'd love

Speaker: 00:21:43

for y'all's input, by the way.

Speaker: 00:21:44

I mean this, all this, this is all so new.

Speaker: 00:21:46

So don't think just because you're smaller, just cuz you have one

Speaker: 00:21:49

campaign that, you know, oh, there's no way I figured out stuff that they

Speaker: 00:21:51

haven't, you would be surprised.

Speaker: 00:21:53

Everything that we figured out has come from.

Speaker: 00:21:56

Think about this.

Speaker: 00:21:57

It's all just individual.

Speaker: 00:21:59

Participation and inclusion.

Speaker: 00:22:00

It's, you know, a specialist figures this out and test this a strategist

Speaker: 00:22:03

test that a cm recommends this.

Speaker: 00:22:05

And then, and then we sew that together in this little patchwork,

Speaker: 00:22:07

quilt that we're offering up.

Speaker: 00:22:09

So we'd love to include you in the quilt.

Speaker: 00:22:11

Um, if you have ideas or recommendations for us.

Speaker: 00:22:13

And then, and then my hope is someday I'll be a little bit more robust

Speaker: 00:22:16

here, but right now it's just like, it, it would be like asking the

Speaker: 00:22:21

question like, oh, why didn't my Google ads campaign perform well.

Speaker: 00:22:26

You know, like, I, I it's, it's impossible.

Speaker: 00:22:29

Impossible question to answer.

Speaker: 00:22:31

Um,

Speaker: 00:22:35

that's all I got really appreciate.

Speaker: 00:22:37

Uh, we just hit 10,000 subscribers by the way.

Speaker: 00:22:38

So I'm pretty excited about it.

Speaker: 00:22:40

Appreciate everybody's support.

Speaker: 00:22:41

I hope the content that we're pushing out has been, uh,

Speaker: 00:22:43

helpful and, um, I'll see you.

Speaker: 00:22:47

Wait before you go, I'm constantly looking for amazing people to come join our team.

Speaker: 00:22:52

So if you're passionate about Google ADSS and you're passionate about customer

Speaker: 00:22:55

success, please go to so late.com/apply.

Speaker: 00:22:58

And we'd love to see you as a part of the solutions 18.

Speaker: 00:23:01

Also, if you like this video, give us a thumbs up.

Speaker: 00:23:03

It lets the YouTube algorithm know that we actually know what we're doing.

Speaker: 00:23:06

And uh, don't forget this job.

Speaker: 00:23:07

We shoot a video every single day and I don't want you to miss out on any.

Speaker: 00:23:11

Lastly, if you have questions, comments, concerns, confessions, or

Speaker: 00:23:14

you just hate my face, my voice, go ahead and nose up in the comments.

Speaker: 00:23:17

We get very little human interaction and even the heckling is something

Speaker: 00:23:21

that I kind of get a kick out.

Speaker: 00:23:22

So thank you so much for watching.

Speaker: 00:23:24

Thank you for being subscribers.

Speaker: 00:23:25

If you're a subscriber, don't forget to apply.

Speaker: 00:23:27

If you're interested in working at solutions eight,