You own a small business that sells shoes. You're ready to run your first Performance Max campaign that uses a set budget. How does the system allocate budget on a Performance Max campaign?

Budget is allocated manually by campaign, so you'll need to create a separate campaign channel and separate campaign for budget.

Budget is allocated automatically across channels, based on performance. You don't need to create a separate campaign for each channel.

Budget is allocated manually across channels, based on your channel preference. You control the campaign setup but optimize by channel manually.

Budget is automatically allocated by campaign, so you'll need to create a separate campaign by channel, and Smart Shopping will optimize budget.


Choose an option to see if it’s correct. Check the explanation below. Learn Smarter, not Harder.

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Explanation: You own a small business that sells shoes. You’re ready to run your first Performance Max campaign that uses a set budget. How does the system allocate budget on a Performance Max campaign?


Explanation: In a Performance Max campaign with a set budget, the system allocates budget automatically across channels based on performance, making the option **'Budget is allocated automatically across channels, based on performance. You don't need to create a separate campaign for each channel.'** the correct choice. Performance Max campaigns are designed to optimize for various conversion goals across Google's advertising inventory using advanced machine learning algorithms. With this automated budget allocation approach, advertisers do not need to create separate campaigns for each channel or manually allocate budget across channels. Instead, the system dynamically adjusts budget allocation based on the performance of each channel, ensuring that budget is allocated where it is most likely to drive results. This automated process simplifies campaign management for advertisers, allowing them to focus on other aspects of their business while the system optimizes budget allocation to maximize performance and achieve desired outcomes. Therefore, for a small business owner launching their first Performance Max campaign, this automated budget allocation mechanism offers a streamlined and efficient way to manage their advertising budget across various channels without the need for manual intervention or complex campaign structures.
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