Performance Max serves across all Google Ads inventory, including Search and Shopping, and uses audience signals that Google may go beyond. Demand Gen serves only on YouTube, Discover, Gmail, Maps and the Display Network, uses audience targeting you choose, and lets you pick channels per ad group. Use Performance Max to capture demand, Demand Gen to create it.
Both campaign types use Google AI, run image and video ads, and can bid for conversions. The real differences are where the ads show and how much you get to steer.
How do Demand Gen and Performance Max compare?
| Performance Max | Demand Gen | |
|---|---|---|
| Where ads show | All Google Ads inventory, including Search, Shopping, YouTube, Display, Discover, Gmail and Maps | YouTube (including Shorts), Discover, Gmail, Maps and the Google Display Network. No Search ads |
| Audiences | Audience signals only: Google may show ads to people outside them if they are likely to convert | Audience targeting you choose, such as lookalike segments, custom segments and Google's affinity and in-market segments |
| Channel choice | Mostly automatic. New channel priority controls for search partners and the Display Network started rolling out on October 15, 2026 | Pick channels per ad group: YouTube in-stream, in-feed and Shorts, Discover, Gmail, Maps, Display Network |
| Bidding | Smart Bidding for conversions or conversion value, with an optional CPA or ROAS target | Conversion and value bidding, plus Maximize clicks |
| Building blocks | Asset groups that Google mixes into ads | Ad groups with image, video, carousel and product feed ads |
The short version: Performance Max decides most things for you across every channel. Demand Gen covers fewer channels but lets you decide who sees the ads and where.
When should you use Performance Max?
- You have a clear conversion goal and conversion tracking you trust.
- You want to capture people who are already searching, on Search and Shopping, from one campaign.
- You sell products from a Merchant Center feed and want Shopping placements included.
Because Performance Max can serve on Search, it overlaps with your Search campaigns. See whether Performance Max takes traffic from Search.
When should you use Demand Gen?
- You want to reach people before they search, on YouTube and in feeds.
- You want to test specific audiences or creative and see results per ad group.
- You need click-based bidding, for example while conversion volume is still low.
- You ran Display or Video action campaigns: Google has moved Video action campaigns into Demand Gen and is now moving Display campaigns there too. See whether Demand Gen replaced Discovery ads.
Can you run both?
Yes, and in my experience that is usually the better setup than choosing one. Performance Max catches demand that already exists. Demand Gen builds new demand that later shows up as searches.
My advice: don't hold Demand Gen to the same CPA target as Performance Max from day one. It reaches people earlier in their decision, so judge it over a longer window and watch whether branded searches and returning visitors grow.
For more detail, read what Demand Gen ads are, where Demand Gen ads show and my guide to Performance Max.
Sources
- Google Ads Help: About Demand Gen campaigns - https://support.google.com/google-ads/answer/13695777
- Google Ads Help: About Performance Max campaigns - https://support.google.com/google-ads/answer/10724817
- Google Ads Help: About audience signals for Performance Max campaigns - https://support.google.com/google-ads/answer/14530785
- Google Ads Help: Channel controls in Demand Gen campaigns - https://support.google.com/google-ads/answer/15973205
- Google Ads Help: About channel prioritization and budget allocation - https://support.google.com/google-ads/answer/18385152