# PMax: The Feed-Only vs. Asset-Heavy Performance Battle
By early 2026, Performance Max (PMax) has moved beyond being a 'new' feature to becoming the central nervous system of most Google Ads accounts. However, a divide has emerged in how the most successful Australian retailers and service providers approach this automation.
At Local Marketing Group, we’ve observed a clear tension between two distinct philosophies: the Asset-Heavy approach (letting Google’s AI generate creative across all channels) and the Feed-Only approach (stripping back to high-intent shopping signals). This evolution is a core part of mastering Google Performance Max in the current landscape.
Choosing the wrong path doesn't just waste budget; it can actively dilute your brand and inflate your Customer Acquisition Cost (CAC). Here is how these two strategies stack up in the current Australian market.
The Asset-Heavy Approach: Dominating the Full Funnel
The Asset-Heavy strategy involves providing Google with every possible resource: high-quality video, lifestyle photography, headlines, and long descriptions. Google then uses its machine learning to mix and match these assets across Search, YouTube, Display, Discover, and Gmail.
When it wins
This approach is superior for businesses looking to generate demand rather than just capture it. If you are a Brisbane-based boutique furniture brand or a national lifestyle service, Asset-Heavy allows you to build brand recognition while simultaneously driving conversions. Keeping up with Google Ads creative trends is essential here to ensure your visuals stand out in a crowded feed.The Advantage: You reach users who aren't actively searching for your product yet but fit your ideal customer profile. The Risk: Ad fatigue and 'Frankenstein' ads. If your assets aren't cohesive, Google might pair a professional headline with a low-res image, hurting your brand perception.
The Feed-Only Approach: The Precision Strike
Commonly known as 'GMC-only' (Google Merchant Center), this strategy involves removing all text and image assets from the PMax campaign, leaving only the product feed. This effectively forces PMax to behave like a 'Smart Shopping' campaign on steroids, focusing primarily on the Shopping tab and high-intent search queries.
When it wins
For e-commerce businesses in competitive niches—think industrial supplies in Eagle Farm or high-turnover fashion—this is often the most profitable route. It eliminates the 'fluff' of low-converting Display and Discovery placements.The Advantage: Lower Cost Per Click (CPC) and significantly higher Return on Ad Spend (ROAS) because you aren't paying for 'awareness' clicks that don't convert. The Risk: You hit a scaling ceiling. Because you aren't feeding the top of the funnel, you eventually run out of high-intent searchers.
Head-to-Head: Which Should You Choose?
| Feature | Asset-Heavy Strategy | Feed-Only Strategy | | :--- | :--- | :--- | | Primary Goal | Brand Growth & Scaling | Pure Profitability/ROAS | | Primary Channels | YouTube, Display, Search, Gmail | Google Shopping, Search | | Management Effort | High (Requires constant creative refreshes) | Medium (Focus is on feed health) | | Scalability | High | Limited to Search Volume |
The 'Hybrid' Middle Ground: A Brisbane Case Study
We recently worked with a Queensland-based outdoor equipment retailer who struggled with PMax. Their Asset-Heavy campaign was spending 40% of the budget on YouTube with a dismal 1.2x ROAS.
Instead of switching entirely to Feed-Only, we implemented a Segmented Hybrid Strategy:
1. The 'Workhorse' Campaign (Feed-Only): We moved their top 20% best-selling products into a Feed-Only PMax campaign. This protected their margins and ensured their most profitable items were always visible on the Shopping tab. 2. The 'Growth' Campaign (Asset-Heavy): We used the remaining products in an Asset-Heavy campaign with strict 'New Customer Acquisition' goals. We used high-quality video of the Glass House Mountains to resonate with the local QLD audience.
The Result: A 34% increase in total account revenue and a 22% improvement in overall ROAS within 60 days. This success highlights the importance of smart spending and budget optimisation when balancing multiple campaign types.
Critical 2026 Optimisation Tactics
Regardless of which approach you take, these three levers are non-negotiable in the current landscape:
1. Brand Exclusions are Mandatory
Don't let Google take credit for your hard-earned brand equity. Ensure your brand name is in an exclusion list for your PMax campaigns. If a customer is searching for your specific business name in Brisbane, they should hit a dedicated Search campaign where you have total control over the messaging, not a PMax ad.2. Profit-Based Bidding (POAS)
Move beyond ROAS. Integrate your COGS (Cost of Goods Sold) into Google Ads. By bidding based on actual profit (Profit on Ad Spend) rather than just revenue, you ensure the PMax algorithm prioritises the items that actually put money in your bank account, not just the ones that look good on a spreadsheet.3. First-Party Data Injection
With the decline of third-party cookies, your customer lists are gold. Uploading your CRM data allows PMax to find 'Lookalike' audiences with much higher accuracy. For Australian SMEs, this means your ads are shown to people who share the same buying habits as your best local customers.Conclusion: Stop Guessing and Start Testing
There is no 'one size fits all' for Performance Max in 2026. The Asset-Heavy approach is a powerful tool for scaling, while Feed-Only is a precision instrument for protecting margins. The most successful Brisbane businesses are those that test both and find the right balance for their specific product lifecycle.
Is your Google Ads account running on autopilot, or is it actually driving profit? At Local Marketing Group, we specialise in auditing and refining PMax strategies to ensure every dollar spent contributes to your bottom line.
Ready to squeeze more profit out of your Google Ads? Contact Local Marketing Group today for a strategy session tailored to your business.