What Should Be the Budget for Performance Max?

The budget for Performance Max campaigns should be moderate. Ideally, it should not exceed $20 per day and should remain within 10-15% of your overall advertising budget.

Full Explanation

When planning your budget for Performance Max, it’s important to keep it balanced. Spending more than $20 daily isn’t necessary, which ensures you control expenses while still gaining effective exposure. Additionally, keeping the budget within 10-15% of your total advertising spend helps maintain a balanced financial strategy and prevents overspending in one particular campaign.

Step-by-Step Breakdown

Determine your total advertising budget: Calculate the full amount allocated to advertising.
Calculate 10-15% of this budget: This percentage defines the upper limit you should dedicate to Performance Max campaigns.
Set a daily cap of $20 or less: Regardless of your total budget, do not spend more than $20 per day on Performance Max.

Real Examples

If your overall advertising budget is $200 per day, allocating 10-15% means Performance Max should receive between $20 and $30 daily. However, since the recommendation is to keep it under $20, you should cap it at $20 to meet both guidelines.

Common Mistakes

Allocating too large a portion of your budget to Performance Max, exceeding the recommended 10-15%.
Setting a daily budget over $20, which is unnecessary and can lead to inefficient spending.

FAQs

Q: Can I spend more than $20 a day on Performance Max?
While possible, it is not recommended since $20 daily is sufficient for effective campaign performance.

Q: Why keep the budget within 10-15% of the overall budget?
This helps maintain balanced spending across all campaigns and avoids overspending on a single one.

Key Takeaways

Performance Max budgets should be modest.
Do not exceed $20 in daily spending for these campaigns.
Limit Performance Max to 10-15% of your total advertising budget.