For a new business with a ~$36 average purchase value, ~60% margin, what Google ads strategy would you recommend to at least break even? Our industry is competitive and so far we’ve seen a few sales from pmax (which as I understand is mostly shopping ads) but the cost was ~$100 per purchase or more
Topic summary
A new business faces profitability challenges with Google Ads in a competitive market. Current metrics show ~$36 average order value with ~60% margin, but Performance Max (PMax) campaigns are generating sales at ~$100+ cost per acquisition—well above break-even.
Key Issue: Unsustainable customer acquisition costs requiring strategic optimization.
Recommended Solutions:
- Launch PMax campaign without text assets to focus budget on Shopping + Display ads only, reducing expense bloat
- Alternative approach: Use Advanced Standard Shopping campaigns for greater control over bidding and targeting
Status: Discussion remains open with no confirmed resolution. The original poster has not indicated which strategy they’ll test or provided follow-up results.
Hello Justcuriouss, thank you for your question.
You could start with a performance max campaign with no assets, so that you are more focused on shopping ads + display ads, and do not include text ads, which can bloat your expenses.
No, Pmax is not mostly shopping ads, it’s pretty much every ad network, which can bloat your expenses.
I have explained this here: https://www.youtube.com/watch?v=z6VhX7MqIgY
Or you could start with more control, using advanced standard shopping explained here: https://www.youtube.com/watch?v=CiRIDzRrHno