Last week, Google held its Q1 earnings call, touting its year-over-year Search growth.
The company reported $68 billion in Q1 revenue, with over 50% attributed to Search and Ads.
Performance Max campaigns were one of the highlights of Search performance, indicating strong projections and investments from Google.
Strong Search Growth In 2022
Ruth Porat, CFO of Google, stated:
“So in terms of the ad business, I would say, as I did in the opening comments, we were very pleased with the year-on-year Search revenue growth in the first quarter, up 24%.”
Performance Max adoption seems to be a key reason for Search growth.
Google’s Chief Business Officer Philip Schindler went on to explain how the newest AI-powered campaign type can help drive optimal performance for advertisers.
“Since launching globally in November, PMax has seen strong customer adoption, particularly among smaller businesses. PMax’s simplicity shows how we’re moving from a model in which businesses needed to understand a complex language of campaigns, keywords, CPCs, etc. – to a model where we understand a company’s goals and actively help them achieve their business objectives.”
Schindler also added “…we’re very, very committed to helping Performance Max deliver for our advertisers and have been very open to advertiser feedback how we can do this.”
Performance Max Figures And Projections
Google provided a brief case study on Performance Max during the earnings call. They highlighted a leading travel assistance company, AssistCard, in LATAM.
AssistCard first started testing Performance Max in November of 2021 when it first rolled out.
During beta testing, Performance Max campaigns had a 40% lower cost per acquisition and a 15X higher conversion rate compared to other campaign types with the same goals.
The case study concluded with the mention that AssistCard will “significantly increase spend on the new ad format in 2022.”
With Performance Max replacing campaign types such as Smart Shopping and Local campaigns, its not surprising that Google is betting on investment to this new campaign type.
Source: Alphabet Q1 2022 Earnings Call (PDF link)
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