Smart Shopping vs Performance Max: Which is Better for Ecommerce in 2025?
🔹 Introduction
As ecommerce retailers adapt to increasing competition and automation, choosing the right type of Google Ads campaign is critical. Two of the most impactful options — Smart Shopping and Performance Max — offer AI-powered campaign automation but with different capabilities and control.
With Smart Shopping being phased out in favor of Performance Max, many retailers still question: Is Performance Max truly better for my ecommerce business? This guide compares both options and helps multichannel sellers understand how to make the best strategic choice for their store in 2025.
🧠 What Is Smart Shopping?
Smart Shopping was a semi-automated Google campaign type that combined:
- Google Shopping ads
- Display remarketing
- YouTube and Gmail ads (limited)
- Automated bidding and placements
Smart Shopping used data from your product feed in Google Merchant Center, along with conversion tracking, to optimize for sales with minimal manual control.
Note: As of 2022–2023, Smart Shopping has been automatically upgraded to Performance Max. However, some ecommerce tools and legacy accounts still reference it or emulate its structure.
🚀 What Is Performance Max?
Performance Max (PMax) is Google’s fully automated campaign type that:
- Runs across all Google properties (Search, Shopping, Display, YouTube, Gmail, Discover, Maps)
- Uses your product feed, creative assets, and audience signals
- Optimizes for conversion goals using machine learning
- Offers deeper asset grouping, audience targeting, and reporting features than Smart Shopping
Performance Max is now the default upgrade path for any Smart Shopping or Local campaigns.
📊 Comparison Table: Smart Shopping vs Performance Max
| Feature | Smart Shopping | Performance Max |
|---|---|---|
| Channels Supported | Search, Shopping, Display | Search, Shopping, Display, YouTube, Gmail, Discover, Maps |
| Manual Creative Control | ❌ Not supported | ✅ Asset groups with text, image, video |
| Audience Signals | ❌ Not customizable | ✅ You can add custom signals (e.g., past buyers, interests) |
| Video Ads | ❌ Auto-generated only | ✅ Upload your own video or auto-generated |
| Reporting by Placement | ❌ Limited | ✅ Insight report breakdown available |
| SKU-Level Reporting | ✅ Supported | ✅ Supported |
| Feed Optimization | ✅ Required | ✅ Required |
| Smart Bidding Options | ✅ ROAS, Conversions | ✅ ROAS, Conversions |
| Learning Curve | Low | Medium |
| Best For | Basic automation, small catalogs | Full-funnel optimization, larger product sets |
🛒 Key Benefits of Performance Max for Ecommerce
- Broader Reach
Reach high-intent shoppers across more surfaces than Smart Shopping allowed, including Discover and YouTube. - Full Funnel Targeting
Target both new and returning users with a mix of awareness and conversion-focused creatives. - Custom Asset Groups
Tailor messaging by product type, margin level, or sales channel using custom feed filters and audience signals. - Advanced Insights
Use placement and search term insights to guide creative optimization, budgeting, and feed improvements. - Automation with Flexibility
While bidding is automated, advertisers now have better inputs through asset groups and audience suggestions.
📉 Downsides and Trade-Offs
While Performance Max is powerful, it comes with trade-offs:
- Less Transparent Search Term Data: You can’t directly control search keywords like in Search campaigns.
- Automated Creative Matching: Google determines where and how creatives are displayed.
- Learning Period: Machine learning takes time — expect a ~2-week optimization window post-launch.
💡 When to Use Performance Max Over Smart Shopping
In 2025, Performance Max is the better and only supported option for ecommerce campaigns, but here’s when it especially excels:
- You want control over creative assets and audience targeting
- You sell on multiple channels and need full-funnel coverage
- You use first-party data or have a large CRM list
- You want to scale your campaigns across Google’s ecosystem
🧩 Structuring PMax for Ecommerce Success
- Use Asset Groups to mirror product categories, collections, or margin tiers
- Upload Video Creatives for better reach on YouTube
- Assign Audience Signals like:
- Cart abandoners
- Past buyers
- Interest-based segments (e.g., “Luxury Jewelry Shoppers”)
- Exclude branded search terms via account-level negatives if needed
📈 Feed Optimization Still Matters
Performance Max relies heavily on your Merchant Center feed:
- Optimize product titles, descriptions, images, and pricing
- Use custom labels to segment products for performance control
- Make sure all items have GTINs, brand, MPNs for full eligibility
🧪 Testing and Optimization Strategy
- Start with high-margin or best-selling SKUs to control budget
- Run split campaigns with and without audience signals
- Use Insights Report to view search categories, asset performance
- Exclude poor-performing products or create separate campaigns
🔄 Migration Tips for Smart Shopping Users
If you haven’t fully transitioned yet:
- Recreate campaigns in Performance Max using your product feed
- Map Smart Shopping campaigns to PMax asset groups
- Use identical conversion goals and audience sources
- Monitor performance for 2–4 weeks before making major changes
✅ Conclusion: Which Is Better?
Performance Max is the better (and required) option for ecommerce in 2025.
While Smart Shopping offered a fast and simple way to advertise, it lacked the insights, reach, and creative control needed for modern multichannel growth.
For ecommerce retailers aiming to scale across Shopify, Amazon, Walmart, and beyond, Performance Max provides deeper automation, wider visibility, and better control.
Use it with proper feed segmentation, audience signals, and consistent reporting to drive profitable growth across your product catalog.