Automation isn’t the enemy. Poor implementation is. And right now, Performance Max is the poster child for what happens when advertisers confuse “letting the algorithm work” with “ignoring what the algorithm is actually doing.” The result? Ad spend disappearing into placements you’d never approve, search terms you’d never bid on, and a creeping realisation that the machine learning everyone raved about has learned absolutely nothing about your business.
This week’s industry conversation centres on something crucial: taking back control without losing the benefits of automation. It’s not about abandoning Google’s AI-powered tools—that ship has sailed—but about finding the balance between letting the machine do its thing and making sure it’s actually working for your business.
The Performance Max Reality Check
Performance Max has been Google’s golden child for a while now, and if you’re running e-commerce campaigns, you’ve likely been nudged (or shoved) toward using it. The pitch is compelling: one campaign that runs across all of Google’s channels, powered by machine learning that optimises everything automatically. Sounds brilliant, right?
Except when it’s not. The problem isn’t that Performance Max doesn’t work—it’s that it works as a black box. You pour in your products, images, and budget, and conversions (hopefully) come out the other end. But what’s happening in the middle? Where are your ads actually showing? Which products are getting the budget? Which search terms are triggering your ads?
Industry experts are now publishing detailed guides on how to “take back control” of Performance Max, which tells you everything you need to know about where we are. When the playbook is about regaining control rather than simply optimising, we’ve clearly hit a tipping point.
What does this mean for your e-commerce business? Plain and simple: you need to stop treating Performance Max as a “set it and forget it” solution. The campaign type isn’t going anywhere—Google’s made that clear—but the way successful advertisers are using it is evolving. We’re moving from blind trust to informed partnership with the algorithm.
Strategy Versus Tactics: The Audit That Actually Matters
Here’s something I’m seeing more discussion about: the difference between strategic failures and tactical failures in Google Ads accounts. This might sound academic, but it’s actually dead practical.
A tactical failure is when your bid strategy isn’t quite right, or your ad copy could be sharper, or you’re not using the latest ad format. These are important, sure, but they’re surface-level fixes.
A strategic failure is when your entire approach is off. Maybe you’re targeting the wrong audience entirely, or your campaign structure doesn’t match how people actually buy your products, or you’re measuring success using metrics that don’t align with profitability.
The industry is pushing a “5-pillar audit” approach that digs into strategic health before getting lost in tactical tweaks. For e-commerce businesses, this matters because you could spend months perfecting your ad copy and bid adjustments whilst completely missing that you’re advertising your lowest-margin products to people who’ll never become repeat customers.
Think about it this way: tactics are about doing things right. Strategy is about doing the right things. If you’re doing the wrong things really well, you’re just efficiently wasting money.
What Profitable Google Ads Actually Look Like in 2026
Looking ahead, the conversation is shifting toward what “profitable” actually means in the current Google Ads landscape. And it’s not what it used to be.
A few years ago, profitability in Google Ads was relatively straightforward: you’d track your cost per acquisition, compare it to your average order value, and if the maths worked, you were golden. Job done.
Now? It’s considerably more complex. You’ve got:
- Attribution challenges because customers bounce between devices and channels
- Longer consideration periods, especially for higher-value products
- The growing importance of customer lifetime value versus first purchase
- Privacy changes that make tracking less precise
- AI-driven campaigns that bundle performance across multiple channels
What industry experts are highlighting is that profitable Google Ads in 2026 means understanding the full customer journey, not just the last click. If you’re only measuring immediate return on ad spend, you’re missing customers who see your ad, do some research, and buy a week later. Or customers who make a small first purchase but become loyal repeat buyers.
For your e-commerce business, this means rethinking how you define success. Yes, immediate ROAS matters—cash flow is real—but the businesses winning in Google Ads right now are the ones tracking deeper metrics and feeding that intelligence back into their campaigns.
The Upper Funnel Question Everyone’s Asking
Here’s a question that’s generating serious debate: how much of your paid media budget should go to upper funnel activity?
Upper funnel means reaching people who don’t know about your brand yet, or who aren’t actively searching for your products right now. It’s awareness and consideration, not immediate conversion. Think YouTube ads, Display campaigns, and broader audience targeting.
The traditional e-commerce approach has been to focus almost exclusively on bottom-funnel—people actively searching for what you sell, ready to buy now. It’s lower risk and more immediately measurable. But there’s a growing recognition that if you only ever advertise to people ready to buy, you’re in a constant battle for the same shrinking pool of high-intent searchers, and the costs reflect that.
The industry conversation isn’t prescriptive about percentages—there’s no magic “20% upper funnel” rule—but it’s pushing advertisers to at least ask the question. Are you investing anything in building awareness, or are you entirely dependent on harvesting existing demand?
For e-commerce businesses, especially those in competitive categories, this matters because your competitors are probably asking the same question. If they start building brand awareness whilst you’re only bidding on high-intent searches, you’ll find yourself paying more for fewer customers over time.
What This All Means Going Forward
The common thread running through all of this week’s industry discussion is control and intentionality. Google Ads hasn’t become less effective, but it has become more complex. The tools are more powerful, but they require more sophisticated thinking to use well.
For your business, the takeaway isn’t to panic or abandon what’s working. It’s to recognise that “working” needs regular re-evaluation. What worked brilliantly in 2023 might be quietly underperforming now. What seemed too risky or complex six months ago might be exactly what unlocks your next growth phase.
Worth keeping tabs on how these industry conversations develop, particularly around Performance Max controls and upper funnel investment. The businesses that stay curious and adaptable—without chasing every shiny new feature—are the ones that’ll keep Google Ads profitable whilst others struggle with rising costs and diminishing returns.