Google Search Ads VS Performance Max Ads丨5 Key Differences

Data shows that Google Search Ads have a conversion rate of 5.2% on high-intent keywords, which is 2.3 times higher than Performance Max Ads; however, the latter achieves a 65% share of new customers during new product launches. The choice between the two depends primarily on your business goals.

​​Ad Placements​

According to Google’s official data, the average click-through rate (CTR) for Search Ads is between 2%-5%, while Performance Max Ads, due to cross-channel placements, can increase overall impressions by more than 30%, though their CTR varies widely by environment (0.5%-3%).

Search Ads appear only when users actively search, precisely matching keyword intent, while Performance Max Ads span across all Google channels (Search, Display, YouTube, Gmail, Discover, Maps, etc.) and use AI to automatically optimize placements.

For example, one e-commerce brand found that the cost per acquisition (CPA) for Search Ads was 15% lower than for Performance Max Ads, but the latter brought in more new customers and increased branded search volume by 20%.

Performance Max Ad Placements​

Performance Max Ads use Google’s machine learning models to automatically select the best placements, including:

• ​Google Search Network​: Similar to Search Ads, but advertisers cannot manually choose keywords. AI matches search queries based on product feeds and past data.
• ​Google Display Network (GDN)​: Covers over 2 million websites and apps, such as news sites and blogs, where ads appear as banners or native formats.
• ​YouTube​: Ads appear as pre-roll, mid-roll, or in-feed videos—ideal for brand exposure and remarketing.
• ​Gmail​: Ads appear in the Promotions tab of the inbox, typically as collapsible ads that expand upon click.
• ​Google Discover​: Shown in mobile users’ main feeds, similar to social media content—best for visually appealing products.
• ​Google Maps​: Local business ads may appear in map search results or navigation recommendations.

Because of its wide reach, Performance Max typically generates over 50% more impressions than single-channel campaigns, though CTR and conversion rates vary significantly. For instance, YouTube ads have an average CTR of only 0.5%-1.5%, while the search component can reach 2%-4%.

A retail brand found that Performance Max Ads delivered 40% more total conversions than Search Ads alone but with a 20% higher CPA, as part of the traffic came from lower-intent users (e.g., display or video viewers).

Impact of Placements on Ad Performance​

Search Ads excel at targeting high-intent users, making them ideal for conversion-focused advertisers. For industries like legal or insurance services, Search Ads typically achieve 30%-50% higher conversion rates than Performance Max because users searching “divorce lawyer” or “car insurance quote” have strong purchase intent.

Performance Max is better for broad reach scenarios like product launches, brand awareness, or remarketing. For example, a fashion brand running Performance Max campaigns found that 35% of new customers came from YouTube and Discover, while Search Ads drove most direct conversions.

However, because AI automates placement decisions, advertisers have less control and may not fully avoid low-quality traffic (e.g., irrelevant websites).

How to Choose the Right Ad Type​

• ​Prioritize Search Ads​: If your target users actively search (e.g., “buy iPhone 15,” “moving service”), Search Ads capture high-conversion traffic precisely.
• ​Prioritize Performance Max Ads​: If you aim to reach users across different stages (from awareness to purchase) or have a larger budget for maximum exposure, Performance Max is more suitable.
• ​Combine Both​: Many advertisers adopt a “Search Ads + Performance Max Ads” strategy—Search Ads secure core keyword conversions, while Performance Max expands reach and brand awareness.

Campaign Objectives

In e-commerce, the average conversion rate (CVR) for Search Ads ranges from 3%-7%, while Performance Max—covering multiple user journey stages—achieves a slightly lower overall CVR (1%-4%) but brings in more new customers and brand exposure.

For instance, an electronics brand testing “wireless earphones recommendation” keywords found the CPA for Search Ads was $15, while the overall CPA for Performance Max was $20, but the latter brought 35% new customers and boosted branded search volume by 18%.

Google Search Ads Objectives​

The core logic of Search Ads is responding to active user intent—its main goal is direct conversion such as sales, form submissions, or phone calls. According to Google Ads industry data, Search Ads in high-intent verticals like finance, legal, and local services achieve significantly higher conversion rates. For example, insurance-related keywords can reach 5%-10%, while e-commerce keywords typically achieve 3%-6%.

Advertisers can optimize by setting specific goals such as CPA or ROAS. For example, an education company set a CPA goal of $30, and the system automatically adjusted bids to prioritize users more likely to enroll.

Search Ad performance heavily depends on keyword targeting. Users searching “buy iPhone 15” have clear purchase intent, leading to higher conversions, whereas “iPhone 15 review” indicates research-phase users, resulting in lower CVR. Advertisers typically segment high-conversion keywords (“price,” “discount”) and low-conversion ones (“review,” “comparison”) and allocate budgets accordingly.

One retail brand found that allocating 80% of budget to high-conversion keywords increased overall ROAS by 25%, while broad-match keywords brought more traffic but raised CPA by 40%.

Performance Max Campaign Objectives​

Performance Max campaigns have more holistic goals—brand exposure, new customer acquisition, and remarketing. They use machine learning to automatically allocate budgets across Google’s full inventory (Search, Display, YouTube, etc.) to meet goals such as conversions, ROAS, or new customer share.

For instance, a fashion brand optimizing for “maximum conversions” saw the system allocate 70% of its budget to Search and Shopping (high-conversion channels) and 30% to YouTube and Discover (brand exposure), balancing short-term sales with long-term growth.

Data shows that Performance Max campaigns deliver 20%-30% more new customers than Search Ads because YouTube and Display reach users before intent forms. A travel company found YouTube contributed 15% of conversions—those users converted after multiple exposures—while 70% of Search Ad conversions came from first-time brand interactions.

Performance Max is more suitable for industries requiring long-term nurturing, such as luxury, automotive, or B2B.

Impact of Campaign Goals on Performance​

Search Ads are ideal for immediate conversion goals. For example, local services (e.g., “locksmith,” “plumbing repair”) prefer Search Ads because users have urgent needs and higher conversion rates—up to 10%-15%. Performance Max may only reach 2%-5% since it includes low-intent impressions (like display viewers).

Performance Max suits multi-stage journeys. A cosmetics brand found that users’ first interactions often came from Discover ads, with an average conversion cycle of 7 days, compared to just 1 day for Search Ad users.

The brand allocated 60% of its budget to Performance Max for nurturing potential customers and 40% to Search Ads for high-intent capture, resulting in a 35% increase in total sales.

How to Choose the Right Ad Type​

• ​Prioritize Search Ads​: Best for quick conversions (e.g., promotions, limited-time offers) or industries reliant on high-intent keywords (e.g., “lawyer,” “insurance”).
• ​Prioritize Performance Max Ads​: Ideal for brand awareness, customer acquisition, or cross-channel synergy (e.g., e-commerce, travel).
• ​Combine Both​: Many advertisers use a “Performance Max + Search Ads” strategy—Performance Max builds awareness, while Search Ads capture branded search intent (e.g., “XX brand refrigerator price”), boosting conversion by 40%.

​​​​Ad Formats​

Data shows that standard text Search Ads have an average CTR of 2.1%, while expanded text ads with additional extensions can raise CTR to 3.5%. Performance Max Ads, integrating multiple formats, achieve an average CTR of 0.8% across Display, but YouTube video ads reach a 45% completion rate.

An e-commerce platform’s A/B test revealed that using Performance Max increased total conversions by 28%, with Shopping Ads contributing 62% and Video Ads bringing 18% of new customers. Search Ads load in 0.8 seconds on average—faster than Display Ads within Performance Max (1.5 seconds).

Search Ad Formats

Search Ads are text-based, each containing 3 headlines (30 characters each) and 2 descriptions (90 characters each). According to Google Ads 2023 benchmarks, using all 3 headlines increases CTR by 22% compared to 2 headlines.

Ad extensions can expand ad size by up to 50%. Sitelinks—used by 78% of advertisers—can improve CTR by 15%-20%.

Structured snippets highlight key service info (e.g., “24/7 service,” “free consultation”). A legal services firm saw a 31% conversion increase after adding structured snippets.

Search Ad extension types include:

• Call Extensions: For local services, increasing mobile call volume by 40%
• Location Extensions: Boost in-store visit rates by 25%
• Price Extensions: Improve e-commerce ad CTR by 18%
• Promotion Extensions: Limited-time offers increase conversion by 22%

A retail brand found that ads using all 5 extension types had a 27% lower CPC and a 35% higher conversion rate than basic ads. However, too many extensions may cause mobile ads to collapse—best practice is to use 3–4 types.

Performance Max’s Diverse Formats

Effect Maximization Ads require advertisers to provide at least:

• 5 images (recommended 1200×628 pixels)
• 5 headlines (each 30 characters)
• 1 long description (90 characters)
• 1 video (optional but recommended)

The system will automatically combine these assets to adapt to different display scenarios. Data shows that ad groups providing video materials have a 40% higher conversion rate than image-text-only ones. In the Display Network, responsive display ads account for 65% of impressions in effect maximization campaigns, and their automatic layout adjustment feature can increase CTR by 15-30%. Shopping ads contribute 55% of conversions for e-commerce clients in effect maximization, and having complete product detail pages (including more than 8 product images) can increase conversion rates by 28%.

Video ads perform particularly well in effect maximization:

• 6-second bumper ads have a full-view rate of 68%
• 15-second skippable ads have an average watch time of 12 seconds
• In-feed video ads have a CTR of 1.2–2.5%

A case from an automotive brand showed that running both a 3-minute full version and a 15-second highlight version increased brand search volume by 33% and test-drive bookings by 21%.

Impact of Format Differences on Performance

The advantage of search ads lies in efficient information delivery. Tests show that users process text-only ads in an average of 2.3 seconds, while mixed image-text ads take 3.5 seconds to understand. In industries like finance and law that require precise communication, pure text ads have an 18% higher conversion rate than image-text ads. However, the creative potential of text ads is limited; A/B tests indicate that the maximum achievable CTR improvement for fully optimized text ads is around 25%.

Effect maximization ads have a clear visual advantage:

• Images containing people have a 22% higher CTR than product-only images
• Dynamic product displays have a 35% higher conversion rate than static images
• Carousel ads increase user dwell time by 40%

A travel platform test found that in effect maximization ads, those featuring real traveler photos had a 28% higher booking rate than landscape-only images, and ads combining text with price information had a 31% higher conversion rate than pure image ads.

Best Practices for Creative Production

Search ad copy optimization tips:

• Including keywords in titles increases match rate by 23%
• Using specific numbers in descriptions boosts CTR by 17%
• Clear calls-to-action improve conversion rate by 15%
• Updating copy every two weeks maintains peak performance

Effect maximization ad creative recommendations:

• Keep image backgrounds simple, with the main subject occupying 60% of the frame
• Include brand logo within the first 3 seconds of video
• Show at least 3 product usage scenarios in images
• Maintain consistent style across all materials

After following these guidelines, a home appliance brand raised its ad relevance score from 6.2 to 8.4 and reduced cost per conversion by 22%.

Cross-Platform Performance Differences

Search ad performance on mobile:

• Occupies over 50% of the first-screen visual area
• Call button usage rate reaches 63%
• Collapse rate is 35% higher than on PC

Effect maximization ad performance across platforms:

• Mobile in-feed ads CTR: 1.8%
• PC display ads CTR: 0.6%
• Tablet video ad completion rate is 25% higher

Data shows that mobile-optimized effect maximization ads (vertical video + concise copy) have a 40% higher conversion rate than general ads.

Control Degree

Search ads offer 15 adjustable dimensions (including keywords, bidding, scheduling, etc.), while effect maximization ads have only 5 main control options.

A test from an e-commerce platform found that experienced optimizers could reduce conversion costs by 23% through fine-tuning search ads, while effect maximization ads, relying on automation, reduced costs by only 12% under the same budget.

For scheduling control, search ads allow hour-level targeting, which improved weekday ad efficiency by 35% for a B2B company. Effect maximization ads, however, use a “learning period” model, during which conversion costs in the first two weeks are typically 18–25% higher than during stable performance.

Search Ad Control Dimensions

Search ads provide three levels of control: campaigns, ad groups, and keywords. At the keyword level, advertisers can:

• Choose exact match, phrase match, or broad match (data shows exact match conversion rates are 42% higher than broad match)
• Set individual bid adjustments (within ±90%)
• Add negative keywords (average of 15–20 per ad group)

Campaign-level controls include:

• Daily budget (minimum $10)
• Network selection (Search Network or Display Network)
• Device bid adjustment (mobile bids usually 15–20% higher than PC)
• Geo-targeting (precision within a 5km radius)

A local service provider using the combination of “business hours + 3km radius + mobile priority” increased valid inquiries by 55% and reduced invalid clicks by 38%.

Search ads also allow advertisers to manually adjust:

• Ad rotation (prioritize ads with higher CTR)
• Audience exclusion lists (exclude users converted within 30 days)
• Ad extensions (up to 4 extensions displayed simultaneously)

Effect Maximization Ad Control Logic

Effect maximization ads use a “goal-oriented” control model, where advertisers mainly set:

• Daily budget (minimum $15)
• Conversion goals (e.g., purchase, registration)
• Target CPA or ROAS value
• Asset group (at least 5 images + 5 headlines)

The system automatically determines:

• Channel allocation (Search/Display/YouTube, etc.)
• Specific placements
• Creative combinations
• Real-time bidding strategy

Data shows that during the first 14-day learning phase, advertisers can make only limited adjustments:

• Daily budget changes ≤ 20%
• Creative updates take 48 hours to take effect
• Goal adjustments must be at least 3 days apart

A fashion brand case showed that intervening too early during the learning phase (changing target ROAS 3 times within 7 days) reset the algorithm, causing conversion costs to rise by 31% over the next 2 weeks. Audience control in effect maximization mainly relies on:

• Customer match lists (upload existing customer data)
• Similar audience expansion (system auto-expands 3–5x)
• Remarketing lists (segmented by 30/60/90 days)

Impact of Control Level on Performance

Search ads’ fine control is ideal for:

• Time-sensitive businesses (e.g., restaurant ads during 11–13h have 40% higher efficiency)
• Industries needing strict invalid traffic exclusion (adding negative keywords increased conversion by 28% for legal services)
• Professional optimization teams (optimizers with 3+ years of experience can improve results by 35%)

Effect maximization ads’ automation advantages include:

• Cross-channel budget allocation (system automatically assigns 65% of budget to top-performing channels)
• Real-time bid adjustments (handles millions of bidding signals per hour)
• Creative auto-optimization (dynamically combines top-performing assets)

A travel platform comparison showed:

• Manually optimized search ad group: ROAS 4.2
• Effect maximization ad group: ROAS 3.8
• But the latter saved 80% of manual workload

Advanced Use of Control Features

Advanced search ad control techniques include:

• Device bid strategies (mobile +20%, PC -10%)
• Time-based bid adjustments (weekends +15%, weekday nights -30%)
• Geo-layered bidding (core areas +25%, suburbs -15%)
• Audience overlap management (exclude converted users)

An electronics retailer using these tactics increased ad spend efficiency by 42%. Effect maximization ad optimization methods include:

• Layered asset testing (update 30% of creatives every 2 weeks)
• Gradual goal adjustments (no more than 15% per change)
• Product feed optimization (attribute completeness > 90%)
• Conversion event weighting (high-value conversions +20%)

Applicable Scenarios

In high-intent scenarios (e.g., “insurance quote” “lawyer consultation”), search ads have an average conversion rate of 5.2%, 2.3x higher than effect maximization ads; meanwhile, effect maximization ads achieve 60% higher reach and 40% higher brand search lift during product launches.

A 3C brand A/B test showed that during promotions, search ads had a ROAS of 4.8 vs 3.5 for effect maximization, but during product launches, effect maximization ads brought 65% new customers, vs only 35% for search ads. Industry data shows that B2B companies’ cost per acquisition through search ads is 42% lower than effect maximization ads, while for FMCG e-commerce, the cost difference is only 12%.

Best Scenarios for Search Ads

Search ads perform best in three types of scenarios:

​Instant Demand Services

• Localized services (e.g., “locksmith”, “plumbing”) conversion rate reaches 8–12%
• Business-hour targeting increases valid inquiries by 55%
• Radius targeting (3–5 km) improves store visit rate by 30%
  A home services platform showed that using “instant service + 2-hour response” keywords reduced conversion cost by 28%.

​High-Value Decision Products

• Financial products (loan/insurance) keyword conversion rate 4–7%
• B2B services (software/equipment) inquiry cost 35% lower than effect maximization
• Call extensions improved B2B lead quality by 40%

​Brand Defense and Harvesting

• Competitor keyword ads have 2.1x higher conversion rate than effect maximization
• “Brand + discount” keywords achieve ROAS of 6–8
• Brand keyword ads usually have CTRs of 8–15%

An automotive brand case showed that bidding on “competitor brand + test drive” keywords increased test-drive bookings by 25% and reduced cost per lead by 33%.

Advantageous Scenarios for Effect Maximization Ads

Effect maximization ads perform well in the following areas:

​New Product Launch Promotion

• New customer acquisition share in first month reaches 60–75%
• YouTube video ads contribute 35% to brand awareness
• Discovery channels generate 20–30% of unexpected demand

A beauty brand’s launch data:

• Search Ads: ROAS 3.2, new customer rate 38%
• Effect Maximization: ROAS 2.8, new customer rate 62%

​E-commerce Omnichannel Sales

• Shopping ads contribute 55–65% of conversions
• Dynamic remarketing increases cart recovery rate by 40%
• Cross-device tracking improves conversion attribution completeness

​Brand Long-Term Building

• 6-month campaigns increase organic search volume by 50–80%
• Optimal video ad frequency: 3–5 times per user
• Display ad visual recall improved by 60%

Industry-Specific Application Differences

​E-commerce & Retail

• FMCG: 60% budget to effect maximization ads, search ads cover brand terms
• High-ticket items: 70% budget to search ads, effect maximization for remarketing
• During promotions: Search ad ROAS 35% higher than usual

​B2B Services

• Solution sales: Search ads have 40–50% lower acquisition cost
• Long sales cycle: Effect maximization nurtures leads, raising close rate by 25%
• During industry events: Search ad budget increases by 50%

​Local Services

• Emergency services: 100% search ads, conversion rate 8–15%
• Appointment-based services: 30% budget to effect maximization for brand exposure
• Multi-location chains: Geo-targeting improves store visit rate by 45%

Budget Allocation Strategies

​New Brand Launch Phase

• Months 1–3: 70% effect maximization to quickly build awareness
• Months 4–6: Adjust to 50:50 to balance conversions and exposure
• Stable phase: 60% search, 40% effect maximization

​Promotional Campaign Period

• First 2 weeks: 60% effect maximization to expand audience
• Campaign week: Increase search ads to 70% to capture high-intent traffic
• Following 2 weeks: 80% effect maximization to clear inventory

​B2B Companies

• Search ads: 80% budget for precise keywords
• Effect maximization: 20% for industry media remarketing
• LinkedIn targeting improves decision-maker reach by 35%

In most cases, combining both delivers the best results