Your advertising campaign should give you inventory feed optimization, but which type of Google Ads campaign should you run utilizing AI to its maximum?
The most dominant choices for car dealers are between Performance Max and Demand Gen. These two AI-powered automations have their benefits and drawbacks, as does anything in marketing. One gives you full-funnel utilization while the other brings creative flexibility to the table. How do you choose between the two to ensure inventory feed optimization to ensure your vehicles reach the right audience the right way?
These are both great Google Ads for dealers, but good at different jobs
Stop guessing between Performance Max and Demand Gen campaigns. Learn when to use each one, how to feed them the right inventory signals and audience data, and protect your branded traffic from getting cannibalized. Careful; using the wrong automation for the wrong signals creates chaos and will leave your advertising in a lurch. Let’s take a deeper dive into each to figure out which is right for your marketing team.
The power of Performance Max campaigns
If it’s part of Google, a Performance Max (PMax) campaign can be run on it. This means you have access to everything that is part of Google, including Search, Shopping, YouTube, Display, Gmail, and Discover. If it lives and breathes within the Google network, PMax has access and can run ads on it, which makes this a powerful way to put AI to work for your advertising. Instead of choosing channels and setting placements, you simply feed it and it does the rest. Set the goals, get a little creative, define the audience signals, and let PMax go to work for you.
What are key features?
- Goal-based bidding
- Automation everything
- Real-time optimization
What is it best for?
- Lead generation and eCommerce
- Hands-off advertisers
- Borad reach campaigns
PMax is great for inventor feed optimization to consumers who are close to converting to a sale but just need a little push. This is fantastic first-party audience targeting with a broad reach, with a focus on consumers who are ready to make a buying decision on their next vehicle.
What does Demand Gen advertising do for your dealership?
When you need branded traffic protection and a great way to build your brand image, Demand Gen is the right AI tool for you. Shoppers who haven’t gotten to the buying point of their journey are more likely to respond positively to Demand Gen advertising. These ad campaigns live at the top and middle of the sales funnel, where shoppers are beginning their search and want to see new things and benefits that help them on their journey.
These ads work great for YouTube, Discover Feed, and as Gmail Ads, ensuring consumers have your dealership as the first name they think of when they reach the buying point further down the funnel.
What are the key features?
- Visually engaging ads
- Audience nurturing
- More control
- Granular reporting
What is it best for?
- Brand awareness
- Lead nurturing
- Creative-first campaigns
Which should you use for inventory feed optimization?
Like your automotive PPC strategy, the choice between Performance Max and Demand Gen required careful consideration. Sometimes, you need to create a campaign using PMax, while other instances call for the tools and benefits of Demand Gen. Incidentally, both types can be used for some campaigns as well. Here’s a breakdown to give you a starting point when using these AI systems in your automotive advertising campaigns.
When to use Performance Max
- When you’re driving conversions – purchases, leads, bookings, downloads
- You have limited time and resources – PMax is an all-encompassing tool, as long as you have the inventory ready, it can work for you
- When you desire full network coverage – the massive reach is a huge benefit
- You have historical data to lean on – Google uses past data to optimize your advertising
When to use Demand Gen
- When launching something new – Demand Gen shows your audience the new stuff the best
- If you have amazingly creative visuals – large images, video shorts, product demos
- If you’re targeting a specific audience – the focused approach is best with Demand Gen
- When building brand recall in your audience – stay on top of mind before users intend to buy
When to use both
- When running a full-funnel strategy
- When you want continued performance
- When you’re scaling
You need both Performance Max and Demand Gen for inventory feed optimization. The two are teammates in your marketing AI optimization, and using both gives you the ability to reach your entire audience.
