Hi there,
Thanks for reaching out! Happy to give you some initial thoughts and guidance on your PMax dilemma. It sounds like you've got a good handle on your business and where your customers are coming from, so let's see if we can get your ad spend aligned with that.
We'll need to look at your audience...
Firstly, I'd agree with your assessment that PMax might not be the ideal strategy for a gifting company focused on specific life events. I've seen this happen before. Your product isn't an impulse buy – it's triggered by a specific need at a specific time. Broadcasting your ads to a broad audience with the hope of inspiring a purchase is likely going to be wasteful, as you're finding. For instance, I recall a campaign we ran where we generated $115k Revenue in 1.5 Months for a client selling online courses. We used Meta Ads, and the majority of the revenue was generated from targeted ads, not broad reach campaigns. This is because people searching for courses are much closer to purchase than someone just idly browsing social media.
You're spot on about capturing high-intent searches. People searching for "thank you gifts for colleague" are much closer to a purchase than someone idly browsing YouTube. Your ad spend should be focused on owning that moment of need. That said, it's possible that your ads manager is seeing some conversions come through PMax at a reasonable cost. If this is the case, it could be worth keeping PMax running on a very limited budget, but it shouldn't be your primary focus.
If you do stick with PMax, make sure you're feeding it really good audience signals. Like, REALLY good. Customer lists, website visitor data, and detailed demographic targeting can help PMax narrow its focus and find the right customers. It might not find your specific demographic.
I'd also have a look at the placement reports and exclude any websites or YouTube channels that are obviously irrelevant to your target audience. I think you can exclude some placements. This will help to minimise wasted ad spend and improve the overall performance of your PMax campaigns.
I'd say you should test and transition...
Okay, so let's say you want to transition away from PMax and focus on Search and Shopping campaigns. Here's how I'd approach it:
Phased Approach: Don't just pause PMax and launch new campaigns simultaneously. That's a recipie for disaster! Instead, start by duplicating your top-performing PMax products/segments into dedicated Search and Shopping campaigns. Give it a little time to find it's feet.
Gradually Shift Budget: As your new Search and Shopping campaigns gain traction, gradually increase their budget while decreasing the PMax budget. This will allow you to monitor performance and make adjustments as needed. You could tweak the bidding if necessary. It's unlikely that you will.
Monitor for Cannibalization: Keep a close eye on your Search and Shopping campaigns to ensure they're not cannibalizing each other's traffic. This can happen if you're targeting the same keywords or audiences. If you see cannibalization, adjust your targeting or bidding strategies to differentiate the campaigns.
You probably should look at your website...
While you're optimising your ad campaigns, it's worth taking a look at your website and making sure it's optimised for conversions. Here are a few things to consider:
Landing Page Optimisation: Make sure your landing pages are relevant to the keywords you're targeting and that they clearly communicate the value of your products. Use persuasive copy and high-quality images to encourage visitors to convert. A/B test different versions of your landing pages to see what works best.
Mobile Optimisation: More and more people are using their mobile phones to browse the web, so it's essential that your website is optimised for mobile devices. Make sure your website is responsive and that it loads quickly on mobile devices. It needs to be responsive!
Checkout Process: Make sure your checkout process is as smooth and easy as possible. Remove any unnecessary steps and offer a variety of payment options. The easier it is for people to buy, the more likely they are to convert.
You'll need a safety net...
Making changes to your ad campaigns can be risky, so it's important to have a safety net in place. Here are a few things you can do to minimise the risk of tanking your results:
Back Up Your Campaigns: Before making any major changes, back up your ad campaigns so you can easily revert to the previous version if something goes wrong.
Monitor Performance Closely: Keep a close eye on your ad campaigns after making any changes. Track your key metrics, such as cost per conversion, conversion rate, and return on ad spend. If you see any significant drops in performance, take action immediately.
Don't Be Afraid to Experiment: The key to success with online advertising is to experiment and see what works best for your business. Don't be afraid to try new things, but always monitor your performance closely and be prepared to make adjustments as needed.
I've detailed my main recommendations for you below:
| Recommendation | Action |
|---|---|
| Refocus on Search & Shopping | Prioritize budget and effort on high-intent searches. |
| Refine PMax Targeting (if used) | Use customer lists and exclude irrelevant placements. |
| Transition Gradually | Duplicate top PMax segments into Search & Shopping. |
| Monitor Performance | Track key metrics closely during and after the transition. |
| Optimise Website | Improve landing pages, mobile experience, and checkout. |
I hope this gives you a clearer path forward. As you can see, managing ad campaigns effectively can be tricky, especially when dealing with the complexities of different platforms and targeting options. If you're feeling overwhelmed or just want some extra help, it might be worth considering working with someone who has experience in scaling software campaigns and can provide expert guidance and support. If you'd like to discuss your situation in more detail and see how we could potentially help, feel free to book in a free consultation. I'm happy to have a chat and offer some more tailored advice.
Regards,
Team @ Lukas Holschuh
