Google adds Local customer optimization to Performance Max

08/12/26
Source: Search Engine Land by Anu Adegbola. Read the original article

TL;DR Summary of Google’s Local Customer Optimization for Performance Max Campaigns

Google has introduced Local customer optimization for Performance Max campaigns with store goals, targeting users nearby and ready to visit or contact businesses. This feature prioritizes ads for high-intent local customers across Google Maps, Waze, and local search formats. It is not compatible with Merchant Center product feeds, requiring separate campaigns for store goals. Advertisers can enable this toggle to optimize delivery toward nearby users actively planning trips or searching locally.

Optimixed’s Overview: Enhancing Local Reach with Google’s New Performance Max Optimization Feature

Understanding Local Customer Optimization

Google’s latest update introduces Local customer optimization within Performance Max campaigns focused on store goals. This feature is designed to connect businesses with users who exhibit strong local intent — those planning visits, seeking directions, or searching for nearby stores on platforms such as Google Maps, Waze, and Google Search’s local formats.

Key Benefits and Limitations

  • Target High-Intent Local Audiences: Ads prioritize users currently navigating or trip-planning within proximity to the store location.
  • Improved Campaign Efficiency: Businesses can consolidate local customer targeting into a single Performance Max campaign without needing multiple setups.
  • Merchant Center Compatibility: This feature is not supported if the campaign uses Merchant Center product feeds or online conversion goals, requiring either removal of feeds or separate campaigns.

How to Implement Local Customer Optimization

Advertisers setting up new Performance Max campaigns with offline conversion goals such as store visits, store sales, or directions will find a new toggle to enable Local customer optimization. For existing campaigns, the option is available under the Budget and bidding optimization settings. Activating this feature directs Google’s algorithm to focus ad delivery on nearby users with strong intent, and it can be disabled anytime to revert to standard campaign behavior.

Why This Matters to Advertisers

This update fills a previous gap where Performance Max campaigns couldn’t specifically optimize for local users actively navigating or seeking nearby stores. By integrating Local customer optimization, brick-and-mortar businesses gain a powerful tool to capture high-quality, actionable local traffic within a unified campaign framework, increasing the potential for in-store visits and conversions.