Is Google Ads Performance Max Effective for Lead Generation?

Recently, I’ve encountered several clients who have been using Performance Max (Pmax) campaigns in their Google Ads for lead generation. Initially, these campaigns seemed to be performing exceptionally well, boasting a low cost per conversion. However, these clients were puzzled as to why they were only receiving low-quality or spam leads.

This issue isn't unique to one client; it has been a recurring theme across multiple accounts using Pmax campaigns for lead generation.

The primary reason for this discrepancy is that, unlike e-commerce campaigns where sales are tracked as conversions, most lead generation campaigns track form submissions and calls as conversions.

For Pmax to function effectively, it needs to be fed with sales conversion data. When you’re only tracking form submissions and calls, the Pmax bidding algorithm tends to generate a lot of low-quality or spam leads.

In my experience, Pmax campaigns perform exceptionally well for e-commerce businesses because the algorithm is fed with actual sales conversion data, making it easier to optimize for high-quality leads.

However, you can achieve similar results with lead generation campaigns if you have offline sales conversion tracking set up. The most straightforward way to do this is by using a tool like WhatConverts. While you don't necessarily need specialized software to track offline conversions, tools like these make it significantly easier to track leads from calls and form submissions.

Get More From Freak.Marketing

Sign up for our newsletter and get a Free Google Ads Audit Conducted Over Zoom by a Seasoned Google Ads Expert With 10+ Years of Experience.

Just enter your email below, and we'll start delivering the goods!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.