Last week, Google made its first-quarter earnings call, touting year-over-year search results growth.
The company posted $68 billion in first-quarter earnings, with more than 50% of it going to search and ads.
Performance Max Campaigns was a standout feature of the search network’s performance, indicating strong prospects and investment from Google.
Strong research growth in 2022
Ruth Porat, Chief Financial Officer of Google, said:
“In terms of the advertising activity, I would say, as I did in the opening comments, we were very pleased with our year-over-year search revenue growth in the first quarter, up 24%.”
Performance Max adoption seems to be one of the main reasons for the growth of the search network.
Philip Schindler, Google’s chief business officer, went on to explain how the latest AI-powered campaign type can help drive optimal performance for advertisers.
“Since its launch globally in November, PMax has seen strong customer adoption, particularly among smaller businesses. The simplicity of PMax shows how we are moving from a model where companies need to understand complex language of campaigns, keywords, bids per click, etc. — to one where we understand company goals We actively assist it in achieving its business goals.”
Schindler also added “…we’re very committed to helping Performance Max deliver ads to our advertisers, and we’re very open to advertiser feedback on how we can do that.”
Maximum performance numbers and projections
Google provided a brief case study on Performance Max during its earnings call. They highlighted AssistCard, the leading travel assistance company in Latin America.
AssistCard first started testing Performance Max in November of 2021 when it was first introduced.
During beta testing, Performance Max campaigns had a 40% Low cost of acquisition and a 15x Higher conversion rate compared to other campaign types with similar goals.
The case study concluded by stating that AssistCard “will significantly increase new ad format spend in 2022.”
With Performance Max being replaced by campaign types such as Smart Shopping and Local campaigns, it is not surprising that Google is betting on investing in this new type of campaign.
Source: Alphabet Q1 2022 Earnings Call (PDF link)
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