Performance Max | Should You Use Single Products or Product Groups

When it comes to running Google Ads Performance Max (PMax) campaigns, one common question is whether you should focus on a single product or group your products together in a product group. Based on our recent testing at the agency, we've noticed some shifts in how well these different approaches perform. In this post, I'll break down our findings and share my recommendations for optimizing your PMax campaigns.

Why Consider Single Product Asset Groups

There are situations where you may want to push a single product, especially if it's a clear winner for your brand. If you have a top-performing product in high demand, consider scaling it further by focusing all your ad efforts on that single item. For many brands, this has been a go-to strategy for driving sales.

But what happens when that single-product approach stops delivering the results you expect? That's the problem we've encountered recently with PMax campaigns. In the past, creating single-product asset groups worked well to scale winning products, but we're now seeing a drop in performance when we take this approach.

The Shift: Product Groups vs. Single Product

Through recent testing, we've noticed that single-product asset groups are no longer as effective as they used to be. Much of the spend in these campaigns is being funneled to search and other platforms rather than Google Shopping, where we typically see the best ROAS. And that's not what you want—especially when trying to get the most out of a winning product.

In one of our tests, we ran two types of PMax campaigns:

1. A single product asset group featuring a top-performing product.
2. A product group that included multiple related products.

The results were clear:

• The product group campaign spent €388 and achieved a 4.61 ROAS.
• The single product campaign, which we later switched to a product group, spent €351 but only got a 3.14 ROAS.

This indicates that even when a product is winning, it's more effective to place it within a broader product group than to isolate it in its own campaign.

Why Product Groups Perform Better

When you create a product group, you give Google more flexibility in allocating your budget. Instead of focusing on just one product, PMax can optimize across multiple products, finding the best-performing ones and maximizing returns on those. Additionally, it prevents too much spending from being diverted to search or display ads, ensuring more focus on Google Shopping, which tends to yield the highest returns for e-commerce brands.

Key Takeaways from the Test

• Single-product campaigns are no longer as effective as they used to be, largely because Google now spreads spending across multiple channels, not just Shopping.
• Product groups offer more flexibility, resulting in higher ROAS, as seen in our test results.
• Always test before making any assumptions. Even though our experience points to product groups being the better option, it's important to test this approach yourself and see what the data tells you.

What Should You Do

If you have a winning product and you're eager to scale, don't just jump into a single-product campaign. Instead, test both approaches—single product vs. product group—and let the data decide. Every business is different, and what works for one may not work for another. But if our recent results are anything to go by, product groups will likely give you better performance and a higher ROAS.

Final Thoughts

As Google Ads continues to evolve, so must our strategies. While single product asset groups used to be the way to go for scaling top performers, we're seeing better results with product groups. This approach gives Google more room to optimize and ensures your ad spend is directed toward the channels that matter most, like Shopping.

If you'd like help with your Google Ads campaigns and want to maximize performance, feel free to book a call with me. We'd love to discuss how to take your campaigns to the next level.