Performance Max
Segment Performance Max by margin, not by category
Categories are an order made for humans. The algorithm needs an order made for economics.
Published on · 5 min read
The usual PMax structure mirrors the shop catalogue: one asset group per category. It is intuitive and mostly useless for steering, because within a single category you will find products at 8% and at 62% margin sitting side by side.
The alternative
- Custom label 0: contribution margin tier (A to E).
- Custom label 1: stock coverage, to push clearance deliberately.
- Custom label 2: return rate in three bands.
- One campaign with its own target per margin tier.
The effect is unspectacular and immediately visible: budget moves to where each euro of media spend leaves the most behind. And you can set a target that matches the goods instead of averaging a compromise across everything.
A campaign structure is not a picture of your assortment. It is a control instrument.