Smart Shopping vs Performance Max represents one of the most important decisions Google Ads advertisers face today. Google retired Smart Shopping campaigns in 2022, but many marketers still wonder how these campaign types compare. Performance Max replaced Smart Shopping as Google’s flagship automated campaign solution. This guide breaks down the key differences, explains what each campaign type offers, and helps advertisers determine which approach fits their goals. Whether someone managed Smart Shopping campaigns before or is starting fresh with Performance Max, understanding these distinctions matters for campaign success.
Key Takeaways
- Smart Shopping vs Performance Max is no longer a choice—Google retired Smart Shopping in September 2022 and automatically upgraded all campaigns to Performance Max.
- Performance Max reaches more Google channels than Smart Shopping, including Search, Discover, and Maps, giving advertisers expanded inventory to find customers.
- Performance Max offers improved reporting and transparency, including search term insights, asset performance ratings, and audience segment breakdowns that Smart Shopping lacked.
- Advertisers can now use audience signals in Performance Max to guide Google’s algorithm toward likely converters using customer lists, website visitors, and custom segments.
- Performance Max works best for advertisers with strong conversion tracking, limited management time, and multi-channel goals—though those wanting granular control may prefer standard campaigns.
- Testing Performance Max for 4-6 weeks while adjusting asset groups and audience signals helps the algorithm learn and improves campaign results over time.
What Is Smart Shopping
Smart Shopping was Google’s automated campaign type that combined standard Shopping campaigns with display remarketing. Google launched Smart Shopping in 2018 to simplify campaign management for e-commerce advertisers.
Smart Shopping campaigns used machine learning to optimize bids and placements automatically. Advertisers set a daily budget and an optional target return on ad spend (ROAS). Google’s algorithm handled the rest.
These campaigns showed ads across several Google properties:
- Google Search results
- Google Shopping tab
- YouTube
- Gmail
- Google Display Network
Smart Shopping pulled product information directly from the Merchant Center feed. Advertisers didn’t need to create separate ad groups or set individual bids for products.
The main appeal of Smart Shopping was simplicity. Small businesses and advertisers with limited time could run effective Shopping campaigns without deep Google Ads expertise. The automation handled bid adjustments, audience targeting, and placement decisions.
But, Smart Shopping had limitations. Advertisers couldn’t access detailed placement reports or exclude specific websites. The “black box” nature frustrated marketers who wanted more control and transparency.
Google officially sunset Smart Shopping campaigns in September 2022. All existing Smart Shopping campaigns were automatically upgraded to Performance Max.
What Is Performance Max
Performance Max is Google’s current all-in-one campaign type that reaches customers across every Google channel. Google designed Performance Max to maximize conversions using automation and machine learning.
Performance Max campaigns run ads on:
- Google Search
- Shopping
- YouTube
- Display Network
- Discover feed
- Gmail
- Maps
This expanded reach gives Performance Max a significant advantage over Smart Shopping, which didn’t include Search text ads, Discover, or Maps.
Advertisers provide “asset groups” containing headlines, descriptions, images, videos, and logos. Google’s AI mixes and matches these assets to create ads optimized for each placement. The system tests combinations automatically and favors high-performing versions.
Performance Max offers several features Smart Shopping lacked:
- Audience signals: Advertisers can suggest target audiences, though Google may reach beyond these suggestions
- Insights reporting: More visibility into search terms, audience segments, and asset performance
- URL expansion: Option to send traffic to relevant landing pages beyond the final URL
- Brand exclusions: Ability to exclude brand terms from Search inventory
The goal-based structure of Performance Max focuses on conversion objectives. Advertisers choose goals like online sales, lead generation, or store visits. Google optimizes toward these outcomes across all available inventory.
Performance Max requires a connected Merchant Center feed for Shopping placements. Without this connection, campaigns won’t show product ads in Shopping results.
Key Differences Between Smart Shopping and Performance Max
Understanding Smart Shopping vs Performance Max differences helps advertisers appreciate why Google made this transition.
Inventory and Reach
Smart Shopping reached five Google properties. Performance Max reaches all Google advertising channels, including Search, Discover, and Maps. This expanded inventory means more opportunities to find customers at different touchpoints.
Reporting and Transparency
Smart Shopping offered minimal reporting. Advertisers couldn’t see which search terms triggered ads or which placements drove results. Performance Max provides improved insights, including:
- Search term categories and actual search terms (with limitations)
- Asset performance ratings
- Audience segment breakdowns
- Placement categories
The reporting still isn’t as detailed as standard Search or Shopping campaigns, but it’s a clear improvement.
Audience Targeting
Smart Shopping used automated audience targeting with no advertiser input. Performance Max allows audience signals, suggestions to guide the algorithm toward likely converters. These signals include customer lists, website visitors, and custom segments based on interests or search behavior.
Creative Assets
Smart Shopping primarily used product feed data and optional display ads. Performance Max requires a broader asset library: multiple headlines, descriptions, images, and ideally video. This asset variety enables ads across more placements.
Campaign Structure
Smart Shopping used a simpler structure with fewer options. Performance Max introduces asset groups, listing groups for products, and more granular controls. The setup takes more time but offers greater customization.
Control and Flexibility
Performance Max gives advertisers more levers to pull. Brand exclusions, URL expansion settings, and final URL options provide flexibility Smart Shopping never offered. But, Performance Max still operates largely as an automated system where Google makes most optimization decisions.
When to Use Performance Max Over Legacy Campaigns
Since Smart Shopping no longer exists, the real question becomes: when does Performance Max make sense compared to standard campaign types?
Performance Max works well in these situations:
Limited time for campaign management: Businesses without dedicated PPC specialists benefit from Performance Max automation. The system handles bidding, placement, and audience decisions automatically.
Strong conversion tracking: Performance Max relies heavily on conversion data to optimize. Advertisers with accurate tracking and sufficient conversion volume (Google recommends 30+ conversions monthly) see better results.
Multi-channel goals: Companies wanting presence across Search, Shopping, YouTube, and Display can consolidate efforts into one campaign. This simplifies management and lets Google’s algorithm allocate budget to top-performing channels.
Existing customer data: Audience signals work best when advertisers provide customer lists and website visitor data. This information helps Performance Max find similar high-value prospects.
Performance Max may not suit every advertiser. Those wanting granular control over keywords, bids, and placements might prefer standard Search and Shopping campaigns. The automated nature of Performance Max means accepting less direct control.
Some advertisers run Performance Max alongside standard campaigns. This hybrid approach uses Performance Max for incremental reach while maintaining control over core terms and products through traditional campaigns.
Testing remains essential. Advertisers should monitor performance closely during the first 4-6 weeks as the algorithm learns. Adjusting asset groups, audience signals, and budgets based on results improves outcomes over time.
