When to use each
Traditional Search Ads: when you need explicit keyword-level control, when budget is under C$1,500/month, when conversion volume is under 30/month, or when you want to bid aggressively on a small set of high-intent queries (your brand, top competitor brands, highest-converting service queries). Manual or target-CPA bidding gives transparency and control.
Performance Max: when you have meaningful conversion volume (50+ monthly conversions, ideally 100+), when you want to access the full Google ad inventory beyond Search, when you have asset depth (10+ images, video, multiple headlines and descriptions), and when you have the operational discipline to wire conversion tracking properly with value-weighted conversions and to maintain audience signals. PMax underperforms with thin signal; it overperforms with rich signal.
Running both together
Most growth-stage local businesses produce the strongest results running Search Ads and PMax in parallel: Search Ads on tight high-intent keyword sets (your brand, top competitor brands, top 5–10 service queries) with manual bidding for control, PMax for the broader inventory with Smart Bidding for automation. Brand exclusion on PMax is essential to prevent it cannibalising branded conversions from Search Ads.
The split that works in most accounts: 30–50% of budget to Search Ads on the highest-intent keyword set, 50–70% to PMax for everything else, with both campaigns reporting to the same conversion goals so attribution doesn't double-count. This combination consistently outperforms either campaign type alone in our managed accounts.