Creative Advertising Agencies 2025: How to Audit Your Current Agency Partnership for Performance Max Success

The relationship between brands and creative advertising agencies has reached an inflection point. Performance Max campaigns have fundamentally changed what success looks like in digital advertising, placing unprecedented demands on creative quality, testing velocity, and data-driven optimization. Yet many enterprise brands continue working with agencies using frameworks designed for a pre-automation era, where creative was a quarterly deliverable rather than a continuous optimization variable. The result? Campaigns that underperform not because of strategy or budget constraints, but because the creative foundation can’t support the performance demands of AI-powered advertising platforms.

Get Your Free Agency Performance Audit

The stakes are substantial. With global search advertising spending projected to reach $351.55 billion in 2025 and Performance Max campaigns now accounting for a significant portion of that investment, the creative capabilities of your agency partner directly impact millions in ad spend efficiency. Research shows that dedicated landing pages convert 65% better than general website pages, and this performance gap extends throughout the creative ecosystem. Brands working with agencies that understand Performance Max asset requirements and testing frameworks consistently achieve 30-50% better ROAS than those using traditional creative approaches.

The question facing enterprise marketers isn’t whether to audit your creative advertising agencies’ partnership—it’s how to conduct that audit in ways that reveal whether your current agency can deliver Performance Max success or whether it’s time to explore alternatives. This comprehensive guide provides the framework, metrics, and decision criteria you need to make that determination with confidence.

The Performance Max Creative Paradigm Shift

Performance Max represents more than just another campaign type—it’s a fundamental reimagining of how creative assets function in digital advertising. Understanding this shift is essential for auditing whether your creative advertising agencies partnership is equipped for current demands.

Traditional campaign structures gave advertisers granular control over where ads appeared, which audiences saw them, and how different creative variations were distributed. Creative assets were relatively static, with agencies delivering finished ads that ran for weeks or months with minimal modification. Success metrics focused on individual ad performance, and optimization happened in discrete cycles with clear beginnings and endings.

Performance Max inverts this model. The platform operates across all Google inventory—Search, Display, YouTube, Gmail, Discover, and Maps—using machine learning to automatically test and optimize creative combinations. Instead of creating finished ads, agencies now provide asset libraries that Google’s algorithms mix and match in real-time based on performance signals. The system generates thousands of creative variations from your asset pool, continuously testing and refining to find the highest-performing combinations for each context and audience.

This automation creates new creative requirements that many traditional agencies struggle to meet. Asset-level performance becomes more important than campaign-level performance, because Google’s algorithms need high-quality assets across all formats to generate effective ad combinations. An agency that excels at producing beautiful display ads but provides weak video assets will constrain Performance Max effectiveness, because the platform can’t compensate for asset gaps with better targeting or bidding.

The velocity of creative production must increase dramatically. Where traditional campaigns might use 5-10 creative variations tested over a quarter, Performance Max campaigns benefit from 50-100 assets continuously refreshed. Industry data shows that 75% of PPC professionals now use AI to write ad copy, with 71% satisfied with the results. This AI adoption reflects the reality that human-only creative production can’t match the volume and speed Performance Max demands.

Asset-Level Performance Requirements: The New Standard

Auditing your creative advertising agencies partnership begins with assessing whether they understand and can deliver against asset-level performance requirements. This evaluation goes beyond asking whether they’ve worked with Performance Max—it requires examining their processes, capabilities, and results at a granular level.

Start by reviewing the asset diversity your agency provides. Performance Max campaigns require assets across multiple formats: headlines (multiple lengths), descriptions (multiple lengths), images (multiple aspect ratios), videos (multiple durations), and logos. Your agency should be delivering at least 15-20 high-quality assets per campaign across these formats, with the understanding that more assets generally improve performance by giving Google’s algorithms more options to test.

Evaluate asset quality using Google’s asset strength ratings as a baseline. Performance Max provides asset strength ratings (Poor, Average, Good, Excellent) based on factors like diversity, relevance, and adherence to best practices. If your campaigns consistently show “Average” or “Poor” asset strength, your agency isn’t meeting the platform’s requirements. Excellent asset strength should be the standard, not the exception.

Examine asset-level performance data to identify patterns. With Google’s enhanced reporting, you can see which specific headlines, images, and videos drive the best results. Review this data with your agency and assess their response. Do they proactively analyze asset-level performance and use insights to inform future creative development? Or do they focus only on campaign-level metrics, treating assets as a black box? Agencies equipped for Performance Max success obsess over asset-level data and continuously refine their creative approach based on these insights.

Consider asset refresh rates. How frequently does your agency provide new assets to replace underperforming ones or test new approaches? Performance Max campaigns benefit from regular asset refreshes—typically monthly for most brands, or even more frequently for brands with significant spend. If your agency treats asset creation as a one-time deliverable rather than an ongoing process, they’re not aligned with Performance Max requirements.

Single Grain’s paid advertising agency has helped clients achieve Excellent asset strength ratings across their Performance Max campaigns, with asset libraries averaging 40-60 high-quality assets per campaign. This asset depth gives Google’s algorithms the raw material needed to find winning combinations across diverse audience segments and contexts.

Creative Testing Frameworks: From Sequential to Continuous

The shift from traditional campaign structures to Performance Max requires a corresponding evolution in creative testing frameworks. Auditing your creative advertising agencies partnership means evaluating whether they’ve made this transition or whether they’re still using outdated testing approaches that limit Performance Max effectiveness.

Traditional creative testing followed a sequential model: develop two creative variations, run them against each other for a statistically significant period, declare a winner, and develop the next test based on learnings. This approach made sense when campaigns had limited creative slots and manual optimization, but it’s fundamentally misaligned with how Performance Max operates.

Performance Max requires a continuous testing framework where multiple creative variations run simultaneously, with Google’s algorithms dynamically allocating impressions based on real-time performance signals. Instead of waiting weeks to determine a winner, the platform makes these determinations thousands of times per day, adjusting creative distribution based on context, audience, and performance.

Evaluate whether your agency has adopted this continuous testing mindset. Ask them to describe their testing framework for Performance Max campaigns. If they talk about A/B tests with control and variation groups, they’re applying old frameworks to new platforms. If they discuss asset libraries, performance monitoring, and continuous refresh cycles, they understand the new paradigm.

Assess the sophistication of their testing hypotheses. Strong agencies develop specific hypotheses about which creative approaches will resonate with which audience segments. For example: “Video assets emphasizing product features will outperform lifestyle-focused videos for high-intent audiences, while lifestyle videos will perform better for cold audiences.” These hypotheses inform asset creation and provide a framework for interpreting results.

Industry data shows that 72% of digital advertisers prioritize efficient growth as their primary objective. Continuous creative testing frameworks are essential for achieving this efficiency, because they ensure your creative assets are constantly improving rather than remaining static. Agencies that have made this transition deliver measurably better results than those still using sequential testing approaches.

AI-Powered Creative Recommendations: Leveraging or Lagging?

The integration of artificial intelligence into creative development and optimization has moved from experimental to essential. When auditing your creative advertising agencies partnership, understanding how they leverage AI-powered tools and recommendations provides crucial insight into their competitive positioning and future readiness.

Google’s Performance Max platform provides AI-powered creative recommendations based on analysis of your asset performance and broader platform data. These recommendations might suggest adding more video assets, testing different headline approaches, or adjusting image compositions. The question isn’t whether these recommendations appear—they do for all advertisers—but whether your agency actively uses them to improve performance.

Evaluate your agency’s response to AI-powered recommendations. Review your Performance Max campaigns and note the recommendations Google provides. Then ask your agency about their process for reviewing and acting on these recommendations. Strong agencies have systematic processes for reviewing recommendations weekly, prioritizing them based on potential impact, and implementing high-priority recommendations quickly.

Assess their use of AI creative tools beyond platform recommendations. The market now offers numerous AI-powered tools for creative development: AI copywriting tools, AI image generation, AI video editing, and more. With 75% of PPC professionals using AI for ad creation, agencies that haven’t integrated these tools into their workflows are falling behind. Ask your agency what AI creative tools they use and how these tools fit into their creative process.

Examine the quality control processes they apply to AI-generated creative. AI tools can dramatically increase creative production velocity, but they require human oversight to ensure brand consistency, message accuracy, and strategic alignment. Your agency should be able to describe clear quality control processes that leverage AI for efficiency while maintaining creative standards.

Research from the Network Advertising Initiative indicates that tailored advertising is the most widely utilized type of digital advertising because it maximizes relevance and effectiveness. AI-powered creative optimization is the next evolution of this tailoring, allowing creative to adapt to individual contexts and audiences at scale. Agencies that effectively leverage AI can deliver this level of personalization, while agencies that don’t will struggle to compete.

Single Grain’s TikTok ads agency has integrated AI tools throughout the creative development process, using AI for initial concept generation, rapid asset production, and performance analysis while maintaining human oversight for strategic direction and brand consistency.

When to Switch Agencies: The Decision Framework

Auditing your creative advertising agencies partnership ultimately leads to a decision: continue the relationship, request specific improvements, or begin searching for a new agency. This decision carries significant implications—agency transitions are disruptive, expensive, and time-consuming, but continuing with an underperforming agency is even more costly.

Performance Gaps are the most obvious signal. If your Performance Max campaigns consistently underperform benchmarks despite adequate budget and sound strategy, creative execution is likely the limiting factor. Compare your performance metrics—ROAS, conversion rates, cost per acquisition—to industry benchmarks and to your own performance in traditional campaign formats. Calculate the financial impact of performance gaps. If your Performance Max campaigns generate 30% lower ROAS than industry benchmarks, and you’re spending $500,000 monthly on these campaigns, the underperformance costs you approximately $150,000 monthly in lost revenue.

Capability Gaps indicate structural limitations that won’t improve without major agency changes. If your audit reveals that your agency lacks the production infrastructure for high-volume asset creation, doesn’t use AI tools effectively, or doesn’t understand Performance Max testing frameworks, these aren’t simple fixes. They represent fundamental capability gaps that would require the agency to essentially rebuild their service delivery model.

Responsiveness to Feedback reveals whether improvement is possible. After completing your audit, share findings with your agency and request specific improvements. Their response tells you everything you need to know. Agencies that acknowledge gaps, propose concrete action plans, and begin implementing improvements quickly are salvageable partners. Agencies that become defensive, make excuses, or agree to improvements without following through should be replaced.

Opportunity Cost is the hidden factor in agency decisions. Every month you continue with an underperforming agency is a month you’re not working with an agency that could deliver better results. Calculate the opportunity cost: if a better agency could improve your ROAS by 25%, what’s the value of that improvement over the next 12 months? Compare that value to the estimated cost and disruption of switching agencies.

According to industry data, 55% of companies hire agencies to manage their PPC campaigns, reflecting the complexity and specialization required for effective campaign management. However, not all agencies are created equal. The gap between top-performing agencies and average agencies in the Performance Max era is wider than ever, because the platform rewards creative excellence and operational sophistication that many agencies lack.

Should You Switch Agencies? Let’s Discuss Your Situation

Measuring Agency Performance: KPIs That Matter

Effective oversight of your creative advertising agencies’ partnership requires clear KPIs that measure both creative quality and business impact. Many brands track generic metrics that don’t reveal whether their agency is truly delivering value.

Asset Strength Rating is your first-line indicator of creative quality. Google provides asset strength ratings (Poor, Average, Good, Excellent) for Performance Max campaigns. Track this metric for every campaign. Your agency should consistently deliver Excellent ratings—anything less indicates they’re not meeting platform requirements.

Asset-Level Performance Metrics reveal which specific creative elements drive results. Track performance metrics (CTR, conversion rate, CPA) for individual headlines, descriptions, images, and videos. Your agency should be analyzing these metrics regularly and using insights to inform future creative development.

Creative Refresh Rate measures how frequently your agency provides new assets. Track the number of new assets added to campaigns monthly and the percentage of your asset library that’s been updated in the past 90 days. Leading agencies refresh 20-30% of assets monthly.

Time-to-Market measures how quickly your agency can develop and deploy new creative assets. Track the elapsed time from creative brief to live assets in campaigns. Best-in-class agencies deliver new assets in 5-10 business days for standard requests.

Performance Improvement Trends measure whether your campaigns are getting better over time. Track month-over-month changes in key metrics like ROAS, CPA, and conversion rate. Your agency’s creative optimization should drive consistent improvement—typically 5-10% quarterly improvement in mature campaigns.

ROI and Efficiency Metrics ultimately determine whether your agency investment delivers business value. Calculate the incremental revenue or profit generated by your Performance Max campaigns relative to agency fees. Strong agency partnerships should deliver 5-10x ROI—for every dollar spent on agency fees, you should generate $5-10 in incremental profit.

Single Grain’s pay per lead agency has helped clients establish comprehensive KPI frameworks that measure both creative quality and business impact, ensuring that agency performance is evaluated holistically rather than on narrow metrics that might not reflect true value.

Frequently Asked Questions

How often should we audit our creative agency partnership?

Conduct comprehensive audits annually, with lighter quarterly reviews focusing on performance trends and relationship health. Annual audits should include the full assessment framework—asset-level performance, creative testing frameworks, AI integration, and strategic alignment. Quarterly reviews focus on KPI trends and emerging issues. Additionally, conduct ad-hoc audits when major changes occur: significant performance declines, agency team changes, or shifts in your business strategy.

What’s a reasonable timeline for seeing improvement after requesting changes from our agency?

Expect to see initial improvements within 30-45 days for tactical changes like increasing asset diversity or improving asset technical quality. Strategic improvements like implementing new testing frameworks or integrating AI tools might require 60-90 days to show measurable impact. If you don’t see meaningful improvement within 90 days of requesting changes, your agency either lacks the capability to make those changes or isn’t prioritizing your account appropriately.

How do we know if our agency’s Performance Max results are actually good?

Compare your performance to three benchmarks: your own performance in traditional campaign formats, industry benchmarks for your sector, and your performance trends over time. If your Performance Max ROAS is significantly lower than your Search campaign ROAS without clear strategic reasons for the difference, creative execution may be limiting Performance Max performance. If your Performance Max performance is declining over time despite ongoing optimization, your agency isn’t keeping pace with platform evolution.

Should we work with a specialized Performance Max agency or a full-service agency?

This depends on your needs and existing agency relationships. Specialized Performance Max agencies typically have deeper platform expertise and more sophisticated creative frameworks for these campaigns, but they may lack capabilities in other areas you need. Full-service agencies provide integrated strategies across all marketing channels but might not have the same depth in Performance Max specifically. Many brands find success with a hybrid approach: a full-service agency for overall strategy and brand work, with a specialized Performance Max agency for campaign execution.

How much should we expect to pay for high-quality Performance Max creative services?

Agency fees vary widely based on scope, scale, and agency positioning. For enterprise brands spending $500K+ monthly on Performance Max campaigns, expect to invest $50K-150K monthly in agency fees (10-30% of media spend) for comprehensive creative and campaign management services. This should include strategic planning, asset creation across all formats, ongoing optimization, and detailed reporting. Performance-based fee structures where agency compensation varies based on results can align incentives while providing cost efficiency.

Get Your Free Agency Partnership Assessment

Ready to evaluate whether your creative agency partnership is positioned for Performance Max success? Single Grain’s YouTube ads and podcast advertising teams have helped enterprise clients audit their agency relationships, identify capability gaps, and either optimize existing partnerships or transition to agencies better equipped for the Performance Max era. Our approach combines rigorous performance analysis with strategic assessment of agency capabilities, providing clear recommendations backed by data.