Question: You own a small business that sells shoes. You're ready to run your first Performance Max campaign that uses a set budget. How does the system allocate budget on a Performance Max campaign?
- Budget is allocated manually by campaign, so you'll need to create a separate campaign channel and separate campaign for budget.
- Budget is allocated automatically across channels, based on performance. You don't need to create a separate campaign for each channel.
- Budget is allocated manually across channels, based on your channel preference. You control the campaign setup but optimize by channel manually.
- Budget is automatically allocated by campaign, so you'll need to create a separate campaign by channel, and Smart Shopping will optimize budget.
Explanation
Performance Max uses Google AI to allocate budget across eligible Google channels from one campaign. The system evaluates performance signals and shifts spend toward inventory that is more likely to support the selected conversion goals. Separate campaigns are not required for each channel because Performance Max can serve across Search, YouTube, Display, Discover, Gmail, Maps, and Shopping. Advertisers set the budget and goals, while automation manages cross-channel delivery.
Why the other options are incorrect
Manually across channels is incorrect because Performance Max does not require advertisers to manually divide budget by channel.
Separate campaign by channel is incorrect because Performance Max is designed to reach multiple Google channels from one campaign.
Manually by campaign is incorrect because channel-level budget allocation is automated based on performance signals.
Source for verification
https://support.google.com/google-ads/answer/10724817
https://support.google.com/google-ads/answer/16260130
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