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?

In a Performance Max campaign, your budget is automatically distributed across multiple channels based on performance, removing the need to set up individual campaigns for each platform.

• Budget is manually allocated across channels based on your channel preference. You maintain control over the campaign setup while you 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.
• 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. There’s no need to create a different campaign for each channel.

Explanation:
In a Performance Max campaign, Google’s automation intelligently allocates your budget across all available Google Ads channels—such as Search, Display, YouTube, Gmail, Discover, and Maps—based on real-time performance. The system continuously analyzes data to direct more budget toward the channels delivering the best results, helping maximize conversions and return on investment. This automated distribution removes the need to manage separate budgets for individual campaigns, simplifying campaign management and ensuring your budget is spent as effectively as possible.