Google Demand Gen Update: What’s Changing and How to Succeed

Google continues to expand advertisers’ opportunities by replacing Video Action Campaigns (VAC) with Demand Gen. This change unlocks new promotional possibilities, especially in video formats, and leverages artificial intelligence for better targeting.

What is Demand Gen?

Demand Gen (formerly Discovery Campaigns) enables advertisers to purchase Google Ads inventory across YouTube Shorts, YouTube In-Stream, YouTube In-Feed, Discovery, Gmail, and Google’s video partner sites. Its primary goal is to generate demand and increase brand awareness.

Key Ad Formats in Demand Gen:

1. For e-commerce:
   • Images + product ads
   • Video + product ads
   • Product ads only
2. For lead generation:
   • Standalone images
   • Video
   • Carousel images

Google is actively expanding Demand Gen inventory, with Display Network ads set to be added soon.

Key Strategies for Successful Campaigns

1. Remarketing

Remarketing allows engagement with users who have already visited your site or taken specific actions. Here’s how to optimize it:

• Start with a single remarketing list – target users who interacted with your site in the last 30–90 days.
• Separate remarketing from prospecting – merging these audiences makes analysis and optimization more difficult.
• Segment the audience by interaction time – a user who abandoned their cart today requires a different approach than one who visited 90 days ago.
• Combine Demand Gen with traditional remarketing in the Display Network.

2. Prospecting

Prospecting targets potential customers who have not yet engaged with your brand, helping attract new buyers and increase demand.

• Analyze past successful audiences – if you have effective campaigns based on similar audiences or interests, consider using them in Demand Gen.
• Start with broad targeting – this allows algorithms to gather more data and optimize the campaign.
• Use attribution tools – track user interactions at different funnel stages.

How to Prepare for the Transition from VAC to Demand Gen

By July 2025, all VAC campaigns will automatically transition to Demand Gen. Here’s how to prepare:

• Create separate video campaigns in Demand Gen if YouTube is your primary channel.
• Test combined campaigns (video + images) – this can help increase reach.

Measuring the Success of Demand Gen Campaigns

Unlike search or shopping campaigns, Demand Gen focuses on top-of-funnel activities, so performance evaluation should differ.

• Analyze reach, engagement, video views, and ad interactions.
• Measure the increase in search queries and remarketing performance.
• Test campaign impact through Brand Lift analysis, geo-targeted blackout tests, or surveys.

The Future of Demand Gen

Google is investing heavily in Demand Gen and plans to:

• Expand channel controls – allowing selection between YouTube, Discover, and Gmail.
• Launch new video formats – vertical 9:16 videos for YouTube Shorts.
• Enhance retail capabilities – integrating product feeds and omnichannel strategies.

We Can Set Up Demand Gen Advertising for You

Our team is ready to help you launch Demand Gen campaigns. We will ensure the right campaign structure, set up effective targeting, and optimize results to maximize your returns from Google Ads’ new capabilities.

Conclusion

Demand Gen offers new opportunities for brands and advertisers. While competition is still relatively low, now is the time to start testing these campaigns. The key is to choose the right strategy, segment your audience effectively, and consider the unique aspects of this new advertising model.

This article available in Ukrainian.