As the housing market continues to evolve, home builders are facing increasing competition in the digital space. Not only from other builders but also from listing sites. Standing out from among your competitors is crucial when potential homebuyers are ready to convert into online leads. With so many online options, how do you know you’re reaching the right people with the right message at the right time?
While Google is undeniably important, the home buyer’s journey is not confined to just Google searches. Potential buyers are engaging with various platforms—watching videos, getting directions, reading articles, and more—before making a decision. But how can a home builder be everywhere at once? That’s where Google’s Performance Max campaigns shine.
What are Google Ads Performance Max campaigns?
Google’s Performance Max campaign is a super-efficient advertising campaign designed to maximize your performance across all of Google’s inventory. So, from a single campaign, your ads can automatically appear across Google’s various channels – Search, Display, YouTube, Discover, Gmail, and Maps, reaching potential clients wherever they are in the customer journey. It allows marketers to tap into customer insights, target a broader audience, and deliver compelling, personalized ads that increase conversions.
How Does Performance Max Work?
Performance Max uses machine learning models to optimize your bids and ads across Google’s channels to drive conversions for your goals. Home builders provide their main campaign objectives, budget, targeting preferences, audience signals, and creative assets (text, images, videos) and let Google do the rest.
Leveraging Google’s extensive data network, the campaign identifies potential buyers most likely to be interested in your homes and creates the most relevant combination of creative to serve an ad with a higher likelihood to convert.
We’ve seen our clients’ Performance Max campaigns have interaction rates that are 150% higher than those of Search, accompanied by a cost per conversion that is 54% lower. Here are a few success stories we’ve seen in Q3 2023 with Performance Max:
- A Houston home builder had a cost-per-lead of only $27 while the overall account average was $61.
- A Florida home builder had a 50% higher conversion rate for Performance Max than Search, accompanied by a cost per conversion that is 54% lower.
- A Northwest green home builder saw a Performance Max cost-per-lead of 10% less than search campaigns.
It’s important to know that Performance Max campaigns don’t use keywords like traditional Search campaigns. Relying solely on a Performance Max campaign can limit your reach so it’s best to run this in addition to your current Search campaigns.
Top benefits of using Performance Max
Reach buyers where they are
One of the biggest benefits of using this campaign type is the ability to reach buyers at all stages of the home-buying journey, from those who are just starting to research to those who are ready to buy. Machine learning helps the campaign deliver the right message to potential buyers at the right time. Because the ads are dynamic, the campaign automatically adjusts based on real-time data so your generated ads are always up-to-date.
Generate more leads
Another benefit of Performance Max is that it is specifically designed to generate conversions. Performance Max campaigns usually drive lower costs per lead than we’ve seen on other Google campaign types, providing more bang for your buck.
Things to consider
Longer Learning Period
Performance Max campaigns are efficient and effective but take time to gain traction. Because the campaign runs on so many placement types, it needs time to gather enough data to be effective in reaching the right buyers. The learning period for this campaign type can take around 6 weeks.
Lack Of Control
One potential drawback is the reduced control over individual ad elements, placements, and bidding. If you prefer having more control over your campaigns, the hands-off approach of Performance Max might be less appealing. However, with a solid foundation, clear objectives, and captivating creative assets, machine learning can effectively guide your campaigns toward your lead generation goals.
Tips For Maximizing Performance
Use high-quality creative
It’s important to use a variety of images and videos to ensure your ads can serve across all of the various platforms and stand out amongst competitors. Be sure to emphasize the unique features of your homes.
Be thorough with audience signals
The more specific you are with your audience signals, the better your results will be. Combining interests, behaviors, audience lists, and keyword targeting will help give the campaign enough information to fully jumpstart machine learning.
Replace low-performing creative
Always be testing! Monitor your campaign data regularly and identify what types of assets aren’t performing well. Replace these assets with new ones and continue this cycle as you bring data in.
Protect your website from bots
Bots can wreak havoc on your Performance Max campaigns. They can generate fake leads, which will skew your campaign data. This makes it difficult for Google’s machine learning to optimize your ads. It’s important to take steps to protect your website from bots such as CAPTCHAs.
Performance Max is a powerful tool that can help home builders stay competitive in 2024. By using Performance Max, home builders can reach a wider audience and generate more leads. Need help developing your Performance Max strategy? Graphic Language can help.
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If you’re wondering how effective your current digital paid media strategy is, book a free digital paid media audit with us. We’ll dive deep into your current strategy to see where you’re at. We’ll provide insights, actionable steps, and an overall review to help you understand what’s working and where you can improve.