Google’s Performance Max (PMax) campaigns have been changing the way marketers think about paid media for several years now.

Unlike traditional campaign types where you manage creative, audiences, and placements separately, PMax bundles everything together and lets Google’s AI take the wheel.

However, whilst automation is central to how Performance Max works, understanding the underlying structure, especially asset groups and audience signals, can help marketers to steer the AI in the right direction.

Here’s what you need to know.

What are Asset Groups?

Think of asset groups as the new ad group – but with far more power.

They’re a collection of creative assets such as text, images, videos, and logos that Google’s machine learning combines in different ways to create ads across all of its channels including Search, Display, YouTube, Gmail, and Discover.

Each asset group usually reflects a theme, product category, or audience segment.

For example, a law firm might create separate asset groups for property law, family law, and employment law.

A restaurant might build groups around Valentine’s Day menus, Children’s menus, being dog friendly, and any offers they have.

Each asset group includes several components.

These typically involve multiple headlines and descriptions, a call to action, a final URL, images, a logo, and ideally a high quality video.

Google then automatically tests different combinations of these assets to find the most effective versions across different placements and target audiences.

What are Audience Signals?

Audience signals are suggestions that you give to Google’s AI.

Note that they are not strict targeting instructions like those used in standard campaigns.

This represents a huge mindset shift for digital marketers who are used to having granular control over who sees their ads.

Audience signals tell Google who you believe is most likely to convert.

This helps the machine learning model to optimise faster and more effectively.

Audience signals can include custom segments built around specific keywords or websites, website visitor lists, uploaded customer data, and interest or intent-based segments like in-market audiences.

Importantly, Performance Max does not limit itself to these groups. Google simply uses them as a starting point and then expands to other audiences as it learns what works and what doesn’t – test and measure, always and forever!

Why do Asset Groups and Audience Signals Matter?

The combination of strong asset groups and thoughtful audience signals sets your Performance Max campaign up for success.

Asset groups provide the creative fuel. Without strong, diverse creative, Google’s machine learning has nothing meaningful to test or scale. You can’t make a silk purse out of a sow’s ear.

Audience signals give the algorithm a helpful head start, enabling it learn more quickly and serve ads more effectively to audiences who might be interested in your brand.

When the two are used together, they allow the AI to show the right message to the right person at the right time.

You’re not just launching a campaign, you’re guiding the machine with intentional strategy.

Best Practices for Asset Groups and Audience Signals

Structure your asset groups around meaningful themes, whether by product category, service line, or customer intent.

Avoid bundling everything into one group, which can dilute the campaign’s effectiveness.

We can’t stress this enough. Use high-quality creative.

Every asset you upload can be shown in multiple combinations, so each piece should be carefully crafted and on-brand. If you don’t upload a video, Google will generate one for you using your existing assets, which often results in generic or awkward ads. It’s much better to control this yourself, even with a simple video.

When it comes to audience signals, be strategic.

Upload your first-party customer data. Build custom intent audiences based on real searches or competitor interest. Include remarketing lists where relevant.

These signals help speed up the learning phase and give Google clearer indicators of who is most valuable to your business.

Monitor asset group performance closely.

Although Performance Max doesn’t give full transparency into placements or specific targeting, you can still see which asset groups are driving results.

This can guide future creative decisions and campaign optimisations.

Final Thoughts from our Head of Paid Media

Performance Max is a powerful tool, but it’s not a ‘set-it-and-forget-it’ solution by any means.

The more thoughtfully you structure your asset groups and the more strategic you are with audience signals, the better your results will be.

Ultimately, success with Performance Max is not just about relying on automation. It’s about feeding the system with smart inputs, clear signals, and quality creative, and letting AI do what it does best from there.