What Does This Mean for Advertisers?

• Expanded reach: Demand Gen campaigns can engage up to 3 billion monthly active users across Google’s most visual platforms.
• New ad formats: Now supporting video, image, and carousel ads for a richer advertising experience.
• AI-powered targeting: Uses Lookalike Segments and Google’s AI to improve audience matching.
• Advanced measurement tools: Features like Brand Lift, Search Lift, and Conversion Lift provide deeper performance insights.

As Google Ads continues to shift towards an AI-driven, engagement-focused advertising model, this update ensures that advertisers can drive more action and enhance their marketing performance.

What Is Demand Gen?

Demand Gen campaigns are a new campaign type in Google Ads designed to drive engagement, discovery, and action across Google’s most visual and interactive platforms, including YouTube, Discover, and Gmail. This upgrade replaces Video Action Campaigns (VAC), offering advertisers more tools to reach high-intent audiences.

The Core Focus of Demand Gen

Unlike traditional search campaigns that rely on users actively looking for products, Demand Gen campaigns focus on proactively engaging potential customers with immersive ad experiences. These campaigns are designed to:

• Capture engagement through high-impact visual placements.
• Drive action by combining video, image, and carousel formats.
• Enhance discovery by reaching users scrolling through their Google feeds.

Where Do Demand Gen Ads Appear?

Demand Gen campaigns allow advertisers to serve ads on:

• YouTube: Includes YouTube Shorts, YouTube in-stream ads, and YouTube in-feed ads.
• Google Discover: Delivers ads as users browse personalized content.
• Gmail: Engages users directly in their inbox with interactive ad formats.

Why Demand Gen Matters for Advertisers

Google’s shift to Demand Gen is a direct response to the evolving digital landscape, where users expect engaging, visually rich ad experiences. These campaigns help brands:

• Expand audience reach: Connect with up to 3 billion active monthly users.
• Use AI-powered targeting: Reach new customers with Lookalike Segments and audience signals.
• Improve performance tracking: Benefit from Brand Lift, Search Lift, and Conversion Lift measurement tools.

Key Differences: Video Action Campaigns vs. Demand Gen

As Google Ads transitions from Video Action Campaigns (VAC) to Demand Gen, advertisers need to understand the key differences that will impact campaign strategy, targeting, and ad placements. Below are the major improvements Demand Gen brings to the table.

1. Expanded Placements

One of the biggest advantages of Demand Gen over Video Action Campaigns is its ability to serve ads on a wider range of Google’s most engaging surfaces:

• YouTube: Includes in-feed, in-stream, and YouTube Shorts (now averaging over 50 billion daily views).
• Google Discover: Ads now appear as users scroll through personalized content.
• Gmail: Demand Gen integrates Gmail ads, placing visually engaging ads directly in users’ inboxes.

2. New Ad Formats

While Video Action Campaigns focused primarily on video ads, Demand Gen allows advertisers to use a mix of formats for a more engaging experience:

• Video Ads: Continue to be a core format, optimized for engagement.
• Image Ads: High-quality static images increase brand visibility.
• Carousel Ads: A new format that lets advertisers showcase multiple images or videos in a scrollable ad unit.

3. Advanced Targeting

Demand Gen introduces AI-powered audience expansion tools to help advertisers reach high-intent users:

• Lookalike Segments: Find new potential customers similar to your existing audience.
• AI-driven optimization: Google AI helps match your ads with the most relevant users.
• Audience signals: Advertisers can provide intent signals to improve performance.

4. AI-Powered Bidding & Measurement

With Demand Gen, advertisers can leverage new bidding strategies and measurement tools for better performance tracking:

• Brand Lift: Measures how your ads influence brand perception.
• Search Lift: Tracks how ads increase brand-related searches.
• Conversion Lift: Evaluates how ads impact actual conversions.

What This Means for Advertisers

By transitioning from VAC to Demand Gen, Google Ads is providing marketers with more engaging formats, expanded reach, and AI-driven optimization tools. Advertisers who embrace these changes can expect:

• Better engagement rates across Google’s most immersive platforms.
• Higher conversion potential through advanced audience targeting.
• Smarter bidding strategies powered by Google’s AI.

Benefits of Demand Gen for Advertisers

Demand Gen campaigns offer a host of benefits that can help advertisers achieve better engagement, drive higher conversions, and optimize performance across Google Ads’ most immersive platforms. Here’s why Demand Gen is a game-changer:

1. Wider Reach: Up to 3 Billion Users

Demand Gen allows advertisers to reach up to 3 billion active monthly users across Google’s top surfaces. These include:

• YouTube: Ads on YouTube, including YouTube Shorts, YouTube Home feed, and more.
• Google Discover: Ads shown as users scroll through their personalized content feeds.
• Gmail: Ads displayed in Gmail inboxes to capture attention right where users are most engaged.

With this expansive reach, your brand will have the chance to engage with a broader audience that spans beyond traditional channels like search or display ads.

2. More Engaging Ad Formats

Demand Gen enhances ad experience with interactive and immersive ad formats designed to capture attention and drive deeper user interaction:

• Video Ads: Engage users with high-impact video content.
• Image Ads: Showcase static visuals that resonate with users.
• Carousel Ads: Provide a more interactive experience by allowing users to swipe through multiple images or videos.

These formats are designed to create richer, more captivating experiences for users, leading to higher engagement rates.

3. Smarter Targeting: AI-Powered Lookalike Segments

One of the biggest advantages of Demand Gen is its use of Google’s AI for smarter targeting. Advertisers can take advantage of:

• Lookalike Segments: Find new users similar to your current customers, expanding your audience while targeting high-intent users.
• First-party Data: Integrate your own customer data for even more precise targeting, ensuring your ads reach the most relevant audiences.

These features help you connect with the right people at the right time, increasing the likelihood of converting them into customers.

4. Better Measurement and Performance Insights

With Demand Gen, you can track campaign success more accurately and optimize your approach:

• A/B Testing: Test different versions of your ads to see what works best with your audience.
• Lift Studies: Measure how your ads influence brand perception, search behavior, and conversions.
• Performance Insights: Get detailed insights on which creatives, formats, and placements are driving results, allowing for better decision-making.

These measurement tools allow you to fine-tune your campaigns continuously, ensuring maximum ROI.

How to Transition from Video Action Campaigns to Demand Gen

Transitioning from Video Action Campaigns (VAC) to Demand Gen in Google Ads involves a few strategic steps. By following these guidelines, you’ll be able to leverage the new features of Demand Gen to reach your marketing goals. Here’s how to smoothly make the shift:

1. Audit Existing Video Action Campaigns

Start by analyzing your current Video Action Campaigns to identify the best-performing creatives. Look at which videos, images, and formats have been driving the highest engagement and conversions. Use this data to inform your new Demand Gen campaigns, as these high-performing assets will likely resonate with your target audience in the new format as well.

2. Optimize Creatives for Demand Gen

Demand Gen allows for more engaging ad formats, such as video, image, and carousel ads. Make sure your creatives are optimized for these formats:

• Videos: Use high-quality, visually appealing videos that grab attention right away.
• Images: Choose images with minimal text and strong branding elements.
• Carousels: Create interactive ads with multiple images or videos that tell a story or showcase multiple products.

By aligning your creatives with the new Demand Gen ad formats, you’ll improve engagement and maximize ad performance.

3. Refine Audience Targeting

Demand Gen introduces advanced targeting options, so it’s time to refine your audience strategy. Make use of:

• Lookalike Segments: Reach new potential customers who share similar characteristics with your existing high-value audience.
• First-party Data: Integrate your customer data to target users more effectively based on their behavior, interests, and past interactions with your brand.

Fine-tuning your audience targeting will help you reach users who are more likely to engage and convert.

4. Adjust Bidding Strategies

Google Ads offers multiple bidding strategies to optimize your campaigns. Depending on your goals, you can adjust the following:

• Maximize Clicks: Ideal if you’re aiming to drive more traffic to your website or landing pages.
• Target CPA (Cost Per Acquisition): Optimize for conversions, especially if you’re looking to acquire customers at a specific cost.
• Maximize Conversions or Conversion Value: Focus on driving as many conversions or the highest-value conversions as possible.

Choosing the right bidding strategy will ensure your Demand Gen campaign delivers the results you’re aiming for, whether it’s clicks, conversions, or revenue.

5. Monitor & Optimize Campaigns

Once your campaigns are live, it’s crucial to monitor performance and optimize for better results:

• A/B Testing: Regularly test different creatives and ad formats to see which ones perform best with your target audience.
• Search Lift Metrics: Track how your ads are influencing searches related to your brand and products, which can provide valuable insights on brand awareness and effectiveness.

Ongoing optimization will help you continuously improve performance and adapt to changes in user behavior or market trends.

What This Means for the Future of Google Ads

The upgrade from Video Action Campaigns (VAC) to Demand Gen marks a significant shift in the way Google Ads operates, with a clear emphasis on AI-driven, visual-first advertising. As Google continues to evolve, advertisers can expect even more sophisticated features and tools that enhance engagement and drive better results. Here’s what this change means for the future of Google Ads:

1. Google Ads is Shifting Towards AI-Driven, Visual-First Advertising

With the introduction of Demand Gen campaigns, Google Ads is making it clear that the future of advertising is all about leveraging artificial intelligence to create highly personalized, visual experiences for users. Advertisers can expect to see:

• AI-powered creatives: Google’s AI will help generate more engaging and targeted ads by optimizing creative elements such as images, videos, and messaging.
• Smart bidding and measurement: Using Google’s machine learning, campaigns will be optimized automatically based on real-time data, ensuring more effective targeting and improved ROI.
• Enhanced visual formats: With a focus on engaging formats like video, carousel, and immersive ads, advertisers will be able to capture user attention across Google’s most popular platforms.

This AI-driven approach will not only improve campaign performance but also simplify the ad creation process, allowing advertisers to focus more on strategy and less on manual adjustments.

2. What Advertisers Should Expect in the Coming Months

As Demand Gen becomes more prevalent, Google Ads will continue to evolve, and advertisers should be ready for:

• Increased use of first-party data: Google will increasingly rely on advertisers’ own data to create more precise audience segments and drive targeted campaigns.
• Stronger integration with other Google platforms: Expect even more seamless integration with platforms like YouTube, Discover, Gmail, and Google video partners, providing greater opportunities for reaching users.
• New measurement tools: Google will roll out more advanced tools to help advertisers track the effectiveness of their campaigns, including brand lift studies, conversion lift, and detailed performance metrics.

Advertisers should stay up-to-date with the latest Google Ads features to maximize the potential of Demand Gen and ensure their campaigns remain competitive.

3. How Demand Gen Aligns with Performance Max and Other Google Ads Solutions

Demand Gen is designed to complement and enhance other Google Ads solutions, particularly Performance Max campaigns. Here’s how Demand Gen aligns with Performance Max and other Google Ads offerings:

• Performance Max: While Performance Max is focused on maximizing performance across all Google inventory, Demand Gen specifically targets engagement and discovery through visually-rich ads on platforms like YouTube and Discover. Both aim to create more comprehensive and personalized experiences for users.
• Integration with Smart Campaigns: Demand Gen campaigns can work alongside Google’s Smart Campaigns, leveraging AI-driven optimization to achieve better results in terms of audience engagement and conversion.
• Seamless user journey: With Demand Gen, users will experience a more unified and immersive journey across Google’s ecosystem, from YouTube videos to Google Discover feeds to Gmail ads, all powered by AI for greater relevance and impact.

As Google continues to integrate AI and visual-first strategies across its platform, Demand Gen will play a key role in helping advertisers create compelling campaigns that engage and convert users at every stage of the customer journey.

As Google Ads transitions from Video Action Campaigns (VAC) to Demand Gen, this upgrade presents exciting opportunities for advertisers looking to enhance their campaign performance through advanced targeting, smarter bidding, and highly engaging ad formats. Here’s a quick recap of the key takeaways:

1. Recap of Key Takeaways

• Demand Gen is designed to drive engagement, discovery, and action across platforms like YouTube, Discover, Gmail, and Google video partners, offering more personalized and immersive ad experiences.
• Expanded placements such as YouTube Shorts, Discover, and Gmail allow advertisers to reach up to 3 billion active users per month.
• AI-powered targeting and smart bidding enhance the optimization of your campaigns, ensuring more effective use of your budget and improved results.
• New ad formats (video, carousel, and image ads) provide more creative flexibility and better engagement with audiences.

2. Checklist for a Smooth Transition to Demand Gen

To ensure a successful migration from VAC to Demand Gen, here’s a simple checklist to guide you through the process:

• Audit your existing Video Action Campaigns: Identify high-performing creatives and assets that can be repurposed for Demand Gen.
• Optimize your creatives: Use high-quality, immersive videos, images, and carousel ads that resonate with your target audience.
• Leverage first-party data: Utilize your existing customer data and Lookalike Segments to build more targeted and relevant audience groups.
• Adjust your bidding strategies: Optimize for clicks, conversions, or conversion value, depending on your campaign goals.
• Monitor performance: Use A/B testing and track metrics like Search Lift to continually refine your campaigns and improve results.

3. Encouragement to Test New Demand Gen Campaigns

The best way to unlock the potential of Demand Gen is to dive in and start experimenting. By testing different creatives, targeting options, and bidding strategies, you’ll be able to gather valuable insights that can inform your future campaigns. Don’t hesitate to share your findings with the Google Ads community, as collaboration and knowledge sharing can help everyone improve their advertising strategies.

Remember: the future of Google Ads is visual, interactive, and driven by AI. By embracing Demand Gen, you’re setting yourself up for success in this new era of digital advertising.