Christian Bale, Brad Pitt and Ryan Gosling dazzled through the US subprime mortgage crash in the 2015 film, ‘The Big Short’. But the real star of the show was a dodgy financial instrument called a CDO or Collateralised Debt Obligation. CDOs were invented to blend risky ‘subprime’ mortgages with more desirable, higher-rated debts. Masked within a banking ‘black box’, they gave the outward appearance of AAA-rated investments. But inside was a toxic jumble that eventually triggered the GFC.
Seven years on from the film and Google has given the world its own black box, the ambitiously-titled Performance Max. From September, all Google Smart Shopping campaigns will become Performance Max campaigns. And by our estimation, brands could waste between 25% and 40% of their budget if they simply follow the instructions when rolling it out.
Not unlike CDOs, Performance Max derives its value from combining Google’s good assets (YouTube, Search) with its not-so-good assets (Display, Maps, Gmail) then packaging them in container especially designed to shield its inner workings from the outside world.
You just say what you want to achieve and Performance Max will do everything else for you. It’ll choose the keywords, the channel and even create the banner ads for you.
You can see what you put in and you can see the results Google give you. But you have no visibility of what happens between those two points.
Because of this it’s sensible to bring some caution to the table.
Looking back...
Read Full Story: https://mumbrella.com.au/is-performance-max-googles-big-short-748880
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