A tire store chain. Two and a half years, three campaign types running simultaneously. Search delivers the highest conversion rate (CR) at 8.8%. PMax handles a product catalog with thousands of items. Meanwhile, a seasonal campaign for Christmas trees via google shopping ads closed with a CR of 21%.
Another client, an auto parts store. A single PMax campaign accounted for 84% of the account’s conversions. Search worked for high-ticket services but couldn’t compete on volume.
Two businesses. Different niches, different tasks, different campaign mixes. This article explains how to choose the right combination for your store. No generic advice on “product advertising” – we cover that elsewhere on the site.
Contents
Three campaign types: the difference in one paragraph
Standard Shopping displays items from your Merchant Center feed on the “Shopping” tab and in search results. You control bids, negative keywords, and structure. This is manual management.
Performance Max takes your feed and ad assets, then Google automatically distributes impressions across Search, Shopping, YouTube, Gmail, Display, Discover, and Maps. Maximum automation – hence the name.
Demand Gen (formerly Discovery) features ads on YouTube, Discover, and Gmail with a focus on visuals and video. It targets users without search intent, aiming to generate demand: showing a product to someone who isn’t searching yet but might want it.
To simplify: Shopping is for those searching right now. PMax is for scaling across all channels. Demand Gen is for catching users before they even reach the search bar.
When to choose Standard Shopping
Shopping has existed in Google Ads for over a decade. It isn’t disappearing despite PMax. There are specific cases where Standard Shopping performs better.
Seasonal campaigns with a short window
For one client, a tire store chain, we launched Standard Shopping for Christmas trees. The season lasted three weeks, achieving a 21% CR. PMax physically wouldn’t have had time to learn within such a short period.
The PMax algorithm needs 2-4 weeks to learn. If your entire season fits within this learning window, a manual Shopping campaign with correct bids will deliver results faster.
Full control over bids
Shopping allows control at the individual item or product group level. Do you know that winter tires R17 have a 40% margin, while R14 only have 15%? Set different bids. You cannot achieve this granularity in PMax.
Plus, negative keywords. In Shopping, you add them freely. In PMax, negative keyword support is limited and available only at the campaign level.
Small catalog (up to 50 items)
If your catalog has 20-30 items, PMax won’t gather enough data to train the algorithm. Shopping with manual bids delivers predictable results without the “Google spends budget on learning” phase.
When PMax is the only option
There are situations where PMax is not just better – it’s the only smart choice.
Large catalog + scale
An auto parts store with thousands of SKUs. Manually managing bids for every item is unrealistic. PMax takes the feed, segments it via Asset Groups, and optimizes impressions automatically.
Our client’s result: 84% of the account’s conversions came from a single PMax campaign. CPC (cost per click) was under $0.02. Achieving this manually with a catalog of thousands of items is impossible.
Multi-channel reach
PMax simultaneously displays ads on Search, YouTube, Gmail, Discover, and Maps. For businesses with physical locations, this is crucial – a customer might see a product on YouTube, then find the store via Maps. Without PMax, this would require 3-5 separate campaigns.
The tire store chain is a prime example. PMax runs in parallel with Search and Display, but only PMax ensures the product catalog appears across all platforms simultaneously.
“Shopping is a sniper rifle. PMax is an assault team with drones, infantry, and artillery. Demand Gen is the reconnaissance that finds people before the battle. The question isn’t ‘what is better’ – it’s ‘what is the task.” – а яка задача.”
– Volodymyr Kashalaba, CEO Guild of Marketing
Demand Gen: what it is and why you need it
Demand Gen replaced Discovery Ads in 2023. By 2026, it will be a mature format with product feeds, video ads, and expanded audiences. However, few in Ukraine are using it yet.
The key difference from Shopping and PMax: Demand Gen does NOT work on search intent. The user isn’t searching for “buy winter tires.” They are scrolling through YouTube or Discover and see your ad with an attractive visual.
Where Demand Gen works best
Products with emotional impulse: clothing, accessories, cosmetics, gifts. Items bought “because they looked good,” not because a broken part needed replacing.
New products without established demand. If no one is searching for your product yet, there is no search traffic for Shopping or Search. Demand Gen creates this demand through visual contact.
Video remarketing. A user viewed a product on your site but didn’t buy – now they see it in a YouTube video ad. Demand Gen supports Lookalike audiences (audiences similar to your customers), expanding reach without losing relevance.
Where Demand Gen does NOT work
Products with purely utilitarian demand. A bearing breaks – the car owner goes to Google and types the part number. They don’t need “inspiration” from YouTube. Search or Shopping works here; Demand Gen would waste budget on impressions to people with no need.
Businesses without visual content. Demand Gen is a format where photo and video quality are decisive. If you only have stock photos on a white background, conversion rates will be low. This is less critical for PMax, as it includes a search component.
Comparison table: Shopping vs PMax vs Demand Gen
Here is how the three campaign types differ across key parameters.
| Parameter | Standard Shopping | Performance Max | Demand Gen |
|---|---|---|---|
| Channels | Search, Shopping | Search, Shopping, YouTube, Gmail, Display, Discover, Maps | YouTube, Discover, Gmail |
| Bid Control | Full | Minimal | Medium |
| Negative Keywords | Full support | Limited (campaign level) | Limited |
| Learning Period | 3–7 days | 2–4 weeks | 1–2 weeks |
| Best For | Seasonal campaigns, small catalogs, full control | Large catalogs, scaling, omnichannel | Impulse purchases, new products, video |
| Min. Budget | From 700 UAH/day | From 1,000 UAH/day | From 1,000 UAH/day |
| Product Feed | Required | Recommended | Optional (product feed ads) |
| Complexity | Medium (manual work) | Low (but requires setup) | Medium (requires visual content) |
How to combine campaigns: two real-world scenarios
In practice, a single campaign rarely works. Below are two approaches that delivered results for our clients.
Scenario 1: Tire store chain
Search + PMax + Display remarketing. Three channels, each with a specific role.
Search targets high-intent queries: “buy winter tires R17 Kyiv.” CR 8.8% – the highest among all campaigns. Why? The user already knows what they want. The search campaign captures this moment.
PMax handles the product catalog. Thousands of tire and wheel options. PMax automatically selects which product to show which user and distributes the budget between Shopping, Search, and other channels.
Display remarketing targets those who left to compare. In tires, a buyer visits 5-6 sites before deciding. Remarketing reminds them of your store and delivers a comparable number of conversions to the main search campaign.
Separately, seasonal Standard Shopping campaigns. Christmas trees, auto accessories before holidays. Short season, manual control, immediate results.
Scenario 2: Auto parts store
PMax + Search. Two channels with clear separation.
PMax for the product catalog with thousands of SKUs. 84% of the account’s conversions. CPC under $0.02. The algorithm processes a data array a human cannot handle manually.
Search for services: repair, installation, diagnostics. Higher CPC, but significantly higher average order value – as the client orders both the part and the labor.
We did not use Demand Gen here. The reason is simple: auto parts are a utilitarian purchase. Users search for a specific part, not inspiration on YouTube. Budget works more efficiently in Search and PMax.
“There is no ‘best’ campaign type. There is a task. For one client, 80% of the budget goes to PMax; for another, to Search. A third needs Demand Gen entirely because no one is searching for their product yet. Strategy is not copying someone else’s formula”
– Volodymyr Kashalaba, CEO Guild of Marketing
Common mistakes when choosing a campaign type
In over 13 years of practice, we’ve seen the same miscalculations repeatedly.
Using PMax instead of Shopping for seasonal items.
A client launches PMax for a pre-New Year product three weeks before the holidays. The algorithm is still learning – the season is already over. For short seasons, Standard Shopping with manual bids delivers results from day one.
Using Shopping instead of PMax for large catalogs
The reverse mistake. A store with 5,000 items tries to manage Shopping manually. Optimizing bids for every item is impossible. PMax handles this automatically at a lower CPL.
Demand Gen without visual content
The format relies on photos and videos. Stock images on a white background in the YouTube feed look like spam. CTR (click-through rate) drops, Google raises the cost per impression, and the campaign becomes unprofitable.
Running all three campaigns simultaneously without a strategy.
Shopping, PMax, and Demand Gen compete for the same auction. Without clear separation by catalog, audience, and budget – you pay more for the same impressions. Rule: each campaign must have its own zone of responsibility.
Ignoring Demand Gen for e-commerce with impulse demand.
Clothing, cosmetics, and decor stores launch only Shopping and PMax. Yet 40-60% of their audience makes decisions based on visual impulse – exactly where Demand Gen works.
FAQ
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Can I run Shopping and PMax simultaneously?
Yes. Google automatically distributes auctions between them. PMax has priority on the Shopping auction for the same item – so Standard Shopping will receive fewer impressions. Optimal strategy: PMax for the main catalog, Standard Shopping for seasonal or high-margin categories with manual control.
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What is the minimum budget for each campaign type?
Standard Shopping – from $15/day for a small catalog. Performance Max – from $25-$35/day, otherwise it won't gather enough data to learn. Demand Gen – from $25/day, as it works with broad audiences.
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Is Demand Gen suitable for B2B?
In most cases, no. A B2B buyer searches for a specific solution via search, not via a YouTube feed. Exception: B2B products with a strong visual component (equipment, machinery), where video demonstrations influence the decision.
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How do I know if PMax is cannibalizing my Search?
Compare search query reports in PMax Insights and Search Terms Report. If PMax appears for branded or exact commercial queries already covered by Search – add them as negative keywords in PMax or exclude them via Brand Exclusions.
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When to add Demand Gen to existing Shopping/PMax campaigns?
When Shopping and PMax are already stable (2-3 months), you have quality visual content (photos and preferably video), and you want to scale beyond search demand. Demand Gen is the next step, not the starting point.
Don’t know which campaign type to start with?Send us a link to your store – we will analyze your catalog, niche, and competitors in 30 minutes. Free. And we will tell you directly: Shopping, PMax, Demand Gen, or a combination.
Guild of Marketing sets up and manages Google Shopping, Performance Max, and Demand Gen for online stores across Ukraine. 300+ accounts, 13+ years of experience. From audit to full management.
More about our Google Shopping services:
guildofmarketing.ua/en/google-shopping-ads/
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