Question from Reddit user:
I only sell under 200 SKUs, but although they all might be in 2 or 3 top-level categories, they are in many sub-categories.
What is the recommended organization of Pmax campaigns?
campaign per top level with asset groups per sub-category?
master pmax campaign with asset groups per sub-cat?
or something else?
Answer from Nabil:
The short answer is:
Given you have fewer than 200 SKUs and they fall under just two or three top-level categories, your best starting strategy is a master PMax campaign with multiple asset groups per sub-category.
This structure provides the Google AI with a larger, unified conversion data pool for faster learning and optimization, which is crucial for lower-volume accounts.
You use the sub-category asset groups to provide highly relevant creative assets and audience signals specific to those niches, ensuring high ad relevance without fragmenting your valuable data or budget control.
The long answer is:
The primary benefit of Performance Max comes from its machine learning, and machine learning thrives on data.
With under 200 SKUs, splitting your budget across multiple campaigns based on your few top-level categories risks “starving” each campaign of the conversion volume Google recommends (usually 20 to 50 conversions per month per campaign).
Campaign consolidation is key when you have a smaller budget and lower conversion volume, so your “master PMax campaign with asset groups per sub-category” is the superior approach.
Since campaign budgets are set at the campaign level, putting all products in one campaign ensures your entire budget is focused on the products that Google’s AI determines will convert best at any given moment, regardless of their top-level category.
The key to making this work with your many sub-categories is meticulous segmentation within your asset groups.
Use the product filters in each asset group to include only the SKUs from that specific sub-category.
More importantly, tailor the assets – the headlines, descriptions, images, and videos – in each asset group to perfectly match the theme of that sub-category, which will maximize ad relevance and improve your click-through and conversion rates.
To really elevate your data quality, leveraging the Google Ads API in conjunction with a sophisticated measurement setup using Google Tag Manager and a server-side environment like Stape or Google Cloud Platform is an excellent and cost-effective solution.
This stack allows you to send richer, server-side data back to Google Ads, such as a precise purchase event that includes margin or profit information for each SKU via enhanced conversions.
The Google Ads API can then be used to automate a “profit-driven” Custom Label creation in your feed that updates which products are high-margin, allowing you to fine-tune your asset group product filters or bidding strategy based on profitability, a level of control that far surpasses manual setup and gives the PMax algorithm a much smarter target to aim for than just revenue.
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