With its massive user base and video-centric approach, YouTube provides a fertile ground for advertisers to showcase their products or services, offering opportunities to unlock massive scale. But there’s a catch: YouTube can be a tough nut to crack.
No worries, though. My name is Bruno Vidić, and as Director of Media Buying at Inceptly, I have some tricks up my sleeve to help you get ahead of your competition and not break the bank.
In this article, I will share the easy steps to set up killer PMax campaigns on YouTube that are geared specifically to drive conversions and maximize ROAS for ToFu (top-of-funnel).
Understanding PMax Campaigns
Before we dive into the specifics of the tactics I want to share with you today, it’s important to remember that PMax (aka “performance maximization”) campaigns are designed for retargeting. While they excel at re-engaging existing customers, many media buyers struggle to set up PMax campaigns for top-of-funnel advertising, missing out on opportunities to leverage PMax for cold audience targeting on YouTube.
But now, you can make that a thing of the past by following the 4 simple steps I will outline below.
Step 1️⃣: Choose the Right Bidding Strategy
The first step in setting up a high-converting PMax campaign optimized to serve as a cold campaign is selecting the appropriate bidding strategy. There are two main options to consider when setting up campaigns for ToFu traffic: Maximize Conversion Value bidding and target ROAS (Return on Ad Spend) bidding. Both strategies have their merits, and the choice depends on your specific goals and preferences.
⤴️ Maximize Conversion Value Bidding
This strategy is ideal if you want to focus on maximizing the total value of conversions generated by your campaign. It allows YouTube’s algorithm to optimize your bids to get the most value out of your ad spend. By selecting this option, you enable the customer acquisition feature, which is crucial for bidding only on new customers.
It’s important to note that this feature only works with Maximize Conversion Value bidding, not with other bidding strategies like target CPA (Cost per Acquisition).
🎯 Target ROAS (tROAS) Bidding
If your primary objective is to achieve a specific return on ad spend, target ROAS bidding is the way to go. This strategy allows you to set a desired ROAS percentage, and YouTube’s algorithm will adjust your bids accordingly to meet that goal.
While Target ROAS bidding can be highly effective, I’d recommend that you start with Maximize Conversion Value bidding and switch to Target ROAS after collecting a sufficient number of conversions (around 30+).
Step 2️⃣: Set Customer Acquisition to Bid Only for New Customers
Since your goal is to convert cold traffic, you want to turn this feature on and ensure you are only targeting new customers with your PMax campaign.
Note that this customer acquisition option will only work for tROAS or Maximize Conversion Value bidding campaigns (selecting other bidding options, like Target CPA or Maximized Conversion bidding, won’t work here). But since you chose one of the correct bidding two options in the previous step, you should be all set to proceed.
Step 3️⃣: Upload Your Customer List (and Keep It Updated!)
Once you have Customer acquisition set up, it’s time to move on to the next stage: uploading your customer list. This step is crucial if you want to utilize the customer acquisition feature and bid exclusively on new customers. By uploading your customer list, you provide Google with the necessary information to identify and exclude existing customers from your PMax campaign.
It’s important to keep your customer list updated to ensure accurate targeting and avoid wasting ad spend on users who have already converted.
Step 4️⃣: Exclude Brand Traffic
To fully focus on ToFu advertising and avoid converting branding traffic, it’s essential to exclude brand-related keywords and placements from your PMax campaign.
YouTube offers a powerful feature called Brand Exclusion, which allows advertisers to specify their brand name and related terms they don’t want their ads to appear for. By leveraging Brand Exclusion, you ensure that your ads are served to new potential customers who are not already familiar with your brand.
Bonus Tips for New Accounts
If you’re setting up a PMax campaign for a new account, there are a few additional tips that can help you optimize your campaign and get the best results:
Exclude Mobile App Traffic
Mobile app placements often have lower conversion rates than other placements. To ensure your ads are displayed only on high-converting placements, consider excluding mobile app traffic on the account level. You can do this through the settings in your Google Ads account.
Exclude Display Traffic
Similarly, excluding display traffic can help you focus your ad spend on placements that are more likely to drive conversions. By excluding display traffic, you can narrow down your targeting and increase the efficiency of your PMax campaign.
Cheat exclusion code: googleadsense_without_youtube.com
Start with a Small Budget
When launching a new PMax campaign, it’s wise to start with a lower budget and gradually increase it as performance improves. This approach allows you to gather data, analyze the campaign’s effectiveness, and make informed decisions for scaling or optimizing.
I recommend starting with $100/day (no matter the target CPA) and giving the campaign a minimum of 5 days to gather some data before making any optimization decisions.
Be Patient
PMax campaigns typically take some time to begin delivering conversions. It’s important to be patient and give your campaign at least 5-7 days (or 30+ conversions) before making any significant changes. The initial days may not yield the desired results, but with time and optimization, you can unlock the full potential of your PMax campaign.
Watch Bruno walk you through his whole process in the video below 👇
TL;DR
Setting up killer PMax campaigns geared specifically towards converting cold traffic on YouTube requires a strategic approach and a deep understanding of media buying, but it can yield amazing results in terms of conversions and ROAS. By following the steps outlined in this article, you can leverage the power of PMax campaigns to their fullest.
Remember to choose the right bidding strategy, keep your customer list up-to-date, and exclude brand traffic to focus on top-of-the-funnel advertising.
Start with a small budget and a Maximize Conversion Value bidding strategy, and wait to collect 30+ conversions before switching to target ROAS bidding. Expect to see a drop in delivery once you switch to tROAS bidding, but don’t worry—the campaign should get on track within a matter of two days. If your PMax campaign is still struggling after switching to tROAS, don’t be afraid to lower your target ROAS or go back to the Maximize Conversion Value strategy if it works for you.
So, go ahead, give these tips a go, and watch your PMax campaigns become a powerful tool not just for retargeting but for converting cold traffic for you.
Cheers,
Bruno
Bruno Vidić, Director of Media Buying
Having managed campaigns for some of our most well-known clients, Bruno has over $40M USD in profitable ad spend behind his belt. His experience and his insatiable drive to find better ways to get clients results that exceed expectations help him steer the Media Buying team at Inceptly and make him our go-to guy for Media Buying know-how.
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