Let’s be honest – if you’ve run Google Ads recently, there’s a good chance Google’s been nudging you towards either Performance Max or Demand Gen. Whether it’s a rep on the phone, an email in your inbox, or a banner screaming at you inside your dashboard, the message is loud and clear: “Try our shiny new campaign types!”

But here’s the thing – just because Google wants you to use them doesn’t mean they’re both right for your business. So let’s cut through the hype and get straight to what matters.

What’s the difference between Performance Max and Demand Gen?

On the surface, both campaigns seem to offer smart automation, broad reach, and access to Google’s full suite of channels. But they’re built for very different jobs. Understanding that distinction is key to not wasting your budget.

Performance Max: Built to Scale What’s Already Working

Think of Performance Max as your growth engine – but only after you’ve nailed your conversions.

• Optimises based on your existing conversion data – if you don’t have this, it’ll flounder
• Fully automated bidding – Maximise Conversions or Maximise Conversion Value are your only options
• Runs across Search, Shopping, YouTube, Gmail, and Display
• Designed to expand reach and drive volume once your foundation is strong

Sounds great, right? It is – if you’ve already dialled in your product, funnel, and conversion tracking. Otherwise, you’re essentially handing the keys over to a smart system with no map.

Heads up: Without brand exclusions, PMax can start poaching traffic from your branded Search campaigns. So if you notice your branded CPCs spiking or conversion volume shifting mysteriously – check your exclusions.

Demand Gen: For Discovery, Education, and Cold Traffic

Demand Gen is the new kid on the block, and it’s a different beast altogether.

• Focused on interruptive discovery – YouTube, Display, and Gmail are its bread and butter
• Lets you define audiences with more granularity than PMax
• Best for high-consideration offers, brand awareness, and top-of-funnel strategies

What it’s not, though, is a Performance Max with video. That’s where many advertisers go wrong.

If you’re launching a new product, need to educate a market, or your audience doesn’t know they need you yet – Demand Gen is your tool.

It also gives you more control: want to focus on YouTube Shorts or block certain placements? You can. PMax, on the other hand, is a bit of a black box – effective, but not always transparent.

Where They Diverge: The Big Three

Let’s break it down further:

1. Audience Targeting

• Demand Gen gives you control – build audiences, layer in custom intent, refine placements.
• PMax leaves it to the algorithm – no targeting options beyond inputs like signals and goals.

2. Ad Placement

• Demand Gen gives you precision – choose YouTube Shorts, Discovery, or Display directly.
• PMax splashes everywhere and lets Google decide what gets the click.

3. Reporting and Attribution

• Demand Gen offers detailed breakdowns – audience insights, placement data, and view-through conversions.
• PMax keeps it vague – top-line results, but little visibility into the “how”.

So Which Should You Use?

This all comes down to your goals and your current data setup.

Use Demand Gen when:

• You need to educate before you convert
• You’re targeting cold audiences
• You want brand lift or video-first campaigns
• Your CPCs are climbing and you need to expand efficiently

Use Performance Max when:

• Your Search and Shopping campaigns are already performing well
• You’ve got solid conversion data
• You want to scale and let Google’s machine learning take the wheel
• You’re ready to automate, but with exclusions in place

Thoughts from the Agency Trenches

At HOC-PPC, we’ve seen firsthand how choosing the wrong campaign type can set a business back months. And the worst part? It’s not always obvious at first. You might see traffic ticking up and assume it’s working, but unless you understand what kind of traffic and how it’s being driven, it’s easy to pour budget into the wrong funnel stage.

Google’s evolving. Fast. And as they roll out more AI-driven options, the burden’s on you – the marketer or business owner – to know how to wield them. Performance Max and Demand Gen both have power. But power without purpose? That’s a recipe for wasted spend.

So ask yourself: what’s the goal? Education or scale? Discovery or conversion?

Then pick your weapon accordingly.