Google, like any business, is focused on making money. To do that, it has to keep evolving its strategy and offering new products that encourage advertisers to spend more money on the platform.
With the roll-out of automation tools like Performance Max, broad match, and auto-apply recommendations, Google wants you to feel like the platform’s automation can do it all for you. And in theory, it should be able to, but the reality is that it doesn’t always allocate spend where it should. This is why it’s important to recognise that Google Ads is a marketing platform, not a business solution.
Automation isn’t always the answer
For some businesses, Performance Max and other automation tools can be highly effective. When set up correctly and fed with the right data signals, automation can make decisions that a human account manager might miss, often pulling in more granular information. However, it’s not a one-size-fits-all solution. In many cases, a granular structure provides more control and better results.
For instance, even with well-configured Performance Max campaigns, there can be flaws. If stock issues arise, such as only having a limited size of a product available, Google’s algorithm won’t account for this. As a result, if the product is still pushed to searchers but only a specific size, like XXXL, is available, the conversion rate will likely drop.
Google is confident, not clairvoyant
Google’s algorithm is built to optimise for its own revenue, not yours. While it processes vast amounts of search data, it doesn’t have access to all the essential details that drive your business decisions. Information such as your ideal customer profile (ICP), margins, promotions, or stock availability are outside its reach.
As a result, Google can optimise based on general search patterns, but it misses the nuances that impact your specific business. For situations where factors like stock levels, geographic performance, or margins play a key role, relying solely on automation can lead to inefficiencies.
A granular approach, such as segmenting campaigns by product type, location, or funnel stage, ensures better alignment with business goals and more effective budget allocation.
Combining automation and granularity
With that being said, it is possible to maintain a granular structure while still getting the benefits of Google’s automation tools.
- Broad match at SKAG level: Instead of using broad match across all campaigns, apply it within a more structured setup, like SKAG (Single Keyword Ad Group).
- Smart bidding with CPC caps: Use smart bidding with CPC caps to control costs while letting the algorithm optimise.
- Performance Max split by product category: Use Performance Max, but split by product category to target the right areas.
- Custom tech for data-driven adjustments: Leverage custom technology to make changes based on performance data from Google Ads.
Automation is a tool – not a replacement
Automation is a tool to help improve campaign efficiency. It should complement your strategy, not replace it. Google’s tools can help, but they need to be used in conjunction with your own strategy and oversight to ensure they align with your business needs.
Final thoughts
Google’s automation tools are powerful, but they’re not a one-size-fits-all solution. While they can optimise some aspects of your campaigns, they don’t have full visibility into your business context. In cases where factors like margins, geographic performance, or availability are important, a more granular approach is necessary.
Automation can be effective, but it should always be used alongside a structured, informed approach to ensure better campaign control and performance.
