What are the highest-paid keywords in Google Ads? CPC rates, industries & cost drivers
Abisola Tanzako | Apr 18, 2025
Branded search terms can take up 30-50% of ad spend in Performance Max campaigns (Google, 2024).
Google Performance Max campaigns are for optimizing ad performance on Google Search, Display, YouTube, Gmail, and Discover.
They employ AI-driven campaigns to optimize ad placements and drive conversions efficiently. Brand cannibalization is the most significant issue plaguing advertisers.
This guide will discuss proven ways to exclude brand keywords from Performance Max that will enable you to increase ROAS (Return on Ad Spend), reduce wasted ad spend, and optimize non-branded traffic.
Before we proceed on how to exclude brand keywords from Performance Max, let us first look at why it is essential:
1. Avoid wasting budget on branded searches: Branded searches are typically from users already aware of your brand. Those customers may have landed on your site by organic or branded search campaigns. If you permit Performance Max to bid for branded terms, you will be paying for traffic that you could have otherwise gotten for free or at a lesser cost.
2. Boost new customer acquisition: Performance Max campaigns drive new users. However, if you keep most of your ad spend for branded searches, you are not taking advantage of potential new business.
3. Improve reporting accuracy: Merging branded and non-branded traffic under Performance Max makes it harder to determine the true impact of your campaign. You cannot accurately calculate net new customer acquisition or budget for different campaign types.
4. Management of ROAS and CPA: You can optimize Performance Max campaigns for non-branded audiences by excluding branded traffic, resulting in higher ROAS (Return on Ad Spend) and lower CPA (Cost Per Acquisition).
The common issues and how to fix them include:
1. Loss of high-intent traffic
2. Competitors bidding on your brand
3. Decreased click-through rate (CTR)
4. Inaccurate attribution data
5. Higher cost-per-click (CPC) on generic terms
Google Performance Max (PMax) is an AI-driven advertising campaign that optimizes ad placement across Google Search, Display, YouTube, Gmail, Discover, and Maps.
Performance Max does not use manual keyword targeting like in search or shopping campaigns.
It is founded on machine learning, which optimizes bidding, audience targeting, and ad placements based on advertiser goals.
Performance Max uses Google’s AI to:
Performance Max prioritizes high-converting traffic, including branded searches.
So, if a user searches for your brand name (for example, “Nike running shoes”), Performance Max can still display your ad even though this searcher would have converted anyway, irrespective of paid search.
Since Google does not have a brand exclusion feature by default, Performance Max can take away from your organic ranks or other brand campaigns, leading to:
Advertisers should utilize negative keywords, audience exclusions, and customer acquisition settings to prevent branded traffic cannibalization and optimize Performance Max for non-branded, high-intent users.
Using these tactics, businesses can reduce ad spend, increase ROAS (Return on Ad Spend), and focus on new customer acquisition.
Since Google does not provide a direct brand exclusion setting, you will need to implement the following strategies:
Google recently expanded the ability to use negative keywords at the account level.
While you cannot add negative keywords to Performance Max campaigns, you can add them at the account level to exclude branded terms.
Performance Max campaigns allow you to target new customer acquisition through a goal type.
Activating this setting will allow you to reach new customers rather than current customers seeking your business.
Google’s final URL expansion option auto-sets landing pages for your ads from your brand, typically brand-related pages.
Turning off this option allows you to limit branded searches.
You can prevent your Performance Max campaign from targeting repeat customers by excluding customers who interact with your brand.
To have more control over the budget, individual brand campaigns are executed in Search and Shopping, and new customer acquisition is left to Performance Max.
Google does not provide search term reports for Performance Max campaigns, but you can check Insights Reports to see if brand cannibalization exists.
A case study on excluding brand keywords from Performance Max (PMax) campaigns found that it reduced customer acquisition costs (CAC) between 19% and 60% on average, up to 40% at times, while improving the effectiveness of new customer acquisition.
Research comparing PMax campaigns with or without brand terms found that those campaigns that did not utilize brand terms targeted new customers unaware of the brand.
While results were similar across various campaigns, overall results suggest that omitting branded keywords can improve the ad budget and yield higher returns for companies attempting to acquire new customers.
Excluding brand keywords from Performance Max campaigns spares wasteful ad spend, maximizes ROAS, and efficiently brings in new customers.
Businesses can leverage their ad budget with maximum efficacy by implementing negative keywords, audience exclusions, and segmentation techniques. Maximize your Performance Max campaigns now and boost conversions at lower costs!
No, Google does not allow the direct exclusion of brand keywords in Performance Max. However, you can utilize account-level negative keywords to exclude them.
The best way is to use negative keywords, customer acquisition goals, URL blocking, and audience exclusions.
Performance Max should ignore brand traffic if you properly exclude brand terms at the account level and separate brand vs. non-brand campaigns. However, continuous monitoring is necessary.
Go to your Performance Max campaign’s Insights tab and look at search themes for any branded terms.
Request a free, no-obligation demo.