Performance Max Audience Signals: The Complete Guide for 2025

In the ever-evolving world of paid search and digital advertising, one of the most significant shifts is the rise of the Performance Max (PMax) campaign type in Google Ads. PMax allows advertisers to reach users across Google’s entire inventory (Search, Display, YouTube, Gmail, Discover, Maps) from a single campaign.

A critical lever inside PMax is Audience Signals — a way to “guide” Google’s machine learning toward your ideal customer. This guide walks you through what audience signals are, why they matter in 2025, how to set them up, best practices, mistakes to avoid, and optimization strategies.

What Are Audience Signals?

To understand audience signals, let’s clarify what they are not, and what they are.

What they are not:

They are not rigid targeting criteria. You’re not telling Google “only show to these people”. Instead: “Signals are used to jump-start your Performance Max campaigns… they don’t limit ads to those audiences.” Search Engine Roundtable+1
They are not keywords in the traditional sense (though PMax may use “search themes” as hints).
They are not a guarantee of conversions, but a way to give the algorithm good hints early on.

What they are:

Audience signals are hints you provide to Google’s algorithm about who might convert. Think: “Here’s what our best customers look like”. TGQ Marketing+2Accelerated Digital Media+2
They live at the asset-group level inside a PMax campaign (each asset group can have its own signal). Google for Developers+1
They help shorten the learning phase and steer the algorithm faster toward high-converting segments. XYZ Lab

Why this matters in 2025

With increasing competition, rising ad costs, and the growing importance of machine learning & automation, advertisers must provide the right inputs to get the algorithm off to a strong start. By using audience signals well, you can get better performance earlier, reduce wasted spend, and unlock more incremental conversions beyond your existing data.

How Audience Signals Work in Performance Max

Let’s walk through the mechanics of how audience signals function, and how Google uses them.

You create a PMax campaign, set conversion goals (sales, leads, visits) and provide assets (text, image, video, feed) plus your budget. Google Business+1
Within the campaign you create one or more asset groups—each is essentially a bundle of creative + products (for shopping) + optionally an audience signal. MG OMD
In an asset group you add an audience signal (for example: existing purchasers list, website visitors, custom intent segments, in-market audiences). This tells Google: “Here are the types of people we believe convert”. Accelerated Digital Media+1
Google’s algorithm uses that signal as a starting point. It will show ads initially to users who match or are similar to that signal. Then, over time, it looks for other users (including outside the signal) who may convert even better. Scott Redgate+1
You don’t see direct performance by signal (Google doesn’t attribute conversions to “signal A vs signal B”). Instead you monitor at the asset-group / campaign level through Insights, search categories and audience segments. WordStream

Step-by-Step: Setting Up Audience Signals in 2025

Here’s how to set up and deploy audience signals in a PMax campaign.

Step 1: Define your campaign goal

Before diving into signals, decide clearly: what’s your objective? Sales, leads, store visits? The type of goal influences which signals will matter. Google Business

Step 2: Create asset groups with creative & feed

Ensure you have good creative assets (text, images, videos) and if applicable, ensure your product feed is clean and well structured (for e-commerce). The signal only works well when your assets are aligned.

Step 3: Add audience signal to asset group

In Google Ads, inside the PMax campaign, navigate to Asset Groups → choose an asset group → Scroll to “Signals” or “Audience signals”. XYZ Lab+1
Click “Add saved audience signal” or “+ New audience”. XYZ Lab
Name the audience signal (e.g., “Recent purchasers – 180 days”, “Website visitors – product page”, etc).
Choose one or more of the following types:
- Your data: customer lists, website visitors, app users, previous converters. TGQ Marketing
- Interests & detailed demographics: in-market audiences, affinity, detailed demographic segments. Digital Neighbor – SEO Agency
- Custom segments / search themes: keywords users have used, competitor website visits, etc. Google for Developers+1
Save and apply the signal to the asset group.

Step 4: Monitor & let learning happen

Once live, allow the campaign to run through its early learning phase. Because PMax is heavily automated, avoid making major changes immediately (unless you clearly see issues).

Step 5: Review insights & iterate

Check the Insights tab. Look for “Top search categories”, “Audience segments” and asset-group performance. Use learnings to refine signal, assets, bidding etc. WordStream

Best Practices for Audience Signals (2025 Edition)

Here are proven best practices to get the most out of audience signals.

✅ Use first-party data (your best customers)

Your own data (customer list, website visitors, converters) provides the strongest signal. Google’s algorithm values these because you know what “good customers” look like. Accelerated Digital Media+1
For example: upload a customer list of high-value purchasers, segment by product type, value, or recency.

✅ Combine different types of signals

Don’t rely only on one type. For example, mix:

Converters (your best customers)
Website visitors who did not convert
Custom intent / search themes (people actively looking)
Affinity / in-market segments (broader interest) Digital Neighbor – SEO Agency
This gives Google varied “hints”.

✅ One asset group → one dominant theme/signal

Segment asset groups around a signal. For example:

Asset group A → signal = “past purchase – high value”
Asset group B → signal = “cart abandoners”
Asset group C → signal = “custom intent – competitor keywords”
This helps you see which signals performing and tailor messaging accordingly. Sol8+1

✅ Don’t overload one asset group with too many signals

While you can add multiple signals, avoid mixing completely unrelated signals in one asset group; this can confuse the algorithm. Better to create separate asset groups for distinct signals. Sol8

✅ Early signal sets matter

Adding high-quality signals early in your campaign helps shorten learning and improves momentum. Google has explicitly said: “Including them early … can be useful to help jump-start performance”. Search Engine Roundtable

✅ Align creative with signal

If asset group is for “recent purchasers – high value”, the creative should reflect that: e.g., upsell messaging, loyalty offer. If it’s “cart abandoners”, creative should personalise and address their hesitation. Alignment improves relevance.

✅ Use search themes & custom segments

PMax now supports “search themes” (text you expect users to search) plus custom segments based on competitor sites, similar-audiences etc. These give extra directional signals. Google for Developers+1

✅ Monitor and adjust

While you can’t directly see “signal A converted 50 times vs signal B 30 times”, you can infer via asset‐group and audience segment performance. Use these signals to iterate: drop poor signals, refine good ones, test new ones.

Common Mistakes & What to Avoid

Even experienced advertisers slip up. Here are pitfalls and how to avoid them.

❌ Mistake: Skipping audience signals

Some advertisers launch PMax without adding any signals thinking “let’s trust Google”. While PMax can still run, without signals you’re missing a head-start and may see slower learning or wasted spend. Reddit+1

❌ Mistake: Confusing “signals” with “targeting”

Remember: Signals are not restrictions. Your ads can and will show outside those signals if algorithm finds value. If you assume signals restrict, you may misinterpret performance. Scott Redgate

❌ Mistake: Dumping all signals into one asset group

As above, mixing too many could reduce clarity. Better structure separately.

❌ Mistake: Using outdated or poor data

If your customer list is stale, or you’re adding weak intent segments, your signals will be weak. Keep lists updated, data fresh.

❌ Mistake: Ignoring asset group & feed alignment

If creative or feed doesn’t match the audience signal, performance will suffer. The mismatch between message and audience reduces relevance.

❌ Mistake: Not giving time for algorithm

Due to automation, PMax often needs 1-2 weeks (or more depending on budget) to stabilise. Excessive changes early can reset learning.

Advanced Tips & Next-Level Strategies

If you’re comfortable with the basics, here are some advanced moves for 2025.

🔍 Use competitor-based custom segments

Create segments of users who have visited competitor websites, searched competitor brand terms, etc. Feed these as signals to find “who else like them”. Digital Neighbor – SEO Agency+1

📊 Segment by product value or margin

For e-commerce, differentiate signals by customer value: high margin purchasers vs low margin. Create separate asset groups accordingly. This allows you to bid differently, optimise separately. Accelerated Digital Media

🧪 Test progression of signals

Start with your best converting data (past buyers). Then add broader segments (cart abandoners, website visitors) and track how performance evolves. Gradually open up but maintain signal clarity.

📱 Use dynamic creative + signals

Since PMax uses multiple channels, ensure you provide assets for each channel and tie them logically to the signal: e.g., video for the audience that is high-value buyer; display banner for new prospect signals.

📈 Use insights to refine signals

After campaign runs a while, check in Insights: which audience segments are converting? Which search categories are trending? Use that to refine or expand signals. WordStream

🌍 Multi-market or language campaigns

If you run across countries or languages, consider building “localized” asset groups with signals tailored to each market (e.g., country-specific best customers, list segments). This helps algorithm find relevant conversions in each region.

Example Walkthrough

Let’s illustrate with a pseudo example:
You run an online store selling premium fitness apparel.

Goal: Increase online sales (ROAS target: 4x)
Asset groups:
- Asset Group A: “High-value repeat buyers”
  - Audience signal: Customer list of past purchasers (value > $200, last 12 months)
  - Creative: “Thanks for being a loyal customer – exclusive new arrivals”
- Asset Group B: “Cart abandoners”
  - Audience signal: Website visitors who added to cart but didn’t purchase (last 30 days)
  - Creative: “Still thinking it over? Here’s 10% off”
- Asset Group C: “New prospects – custom intent”
  - Audience signal: Custom segment – searched “premium workout clothes”, “fitness apparel brand X”, visited competitor website
  - Creative: “Discover our premium gear – built for results”
Run campaign: Provide images, videos, feed, set budget, etc
Monitor: After two weeks, go to Insights → see “Audience segments driving conversions” → maybe your custom segment C is performing better than expected → allocate more budget, create new asset group D for “look-alike of high-value buyers”.
Refine: Drop asset group B if it under-performs, or refresh creative and signal.

Measuring & Evaluating Success

Since you can’t directly measure signal performance, focus on campaign & asset-group metrics:

Conversion rate, cost per conversion, ROAS by asset group
Insights → which audience segments are converting
Search categories → are there new search themes driving conversions? WordStream
Compare results over time: Did adding a signal reduce CPA faster than previous campaigns?
Feed & creative health: are assets fresh, aligned, optimised?

When to Use (and Not Use) Audience Signals

When you should:

You have decent data (visitors, customers, lists) and want to scale.
You’re launching a new PMax campaign and want a strong start.
You want to segment your asset groups intelligently.

When you might hold back:

If you have zero first-party data, you might lean on broader signals while building data.
If your budget is very tiny (algorithm needs some volume to learn).
If you’re in a very restricted industry (some audiences/data may not be available).

2025 Trends & What’s Changing

Google continues to enhance PMax and the role of machine learning. Audience signals remain important but algorithm sophistication grows.
“Search themes” are gaining traction as an alternative/hybrid to custom intent keywords inside PMax. Google for Developers+1
Privacy changes and data restrictions (especially 3rd-party cookies) increase the value of your own first-party data.
More automation means less manual targeting; audience signals become one of the few “manual” levers you have in PMax.
Cross-channel synergy: Because PMax covers many Google networks, ensuring your audience signal aligns with omnichannel behaviour (mobile, YouTube, display) is key.

Summary

Audience signals in Google Ads Performance Max are a powerful but often under-utilised lever. When used correctly:

They help accelerate the learning phase.
They steer the algorithm toward your best customers (and similar ones).
They allow for smarter segmentation of asset groups and creative.
They support better performance, especially when competition and cost pressures are high.

In 2025, with automation dominating, understanding and using audience signals gives you an edge. You’re not fully controlling who sees your ad, but you are giving Google’s AI the right hints. Do that well, monitor intelligently, iterate creatively — and you’ll unlock more conversions, better ROAS, and smarter spend.