Everything You Need to Know About Demand Generation Campaigns on Google Ads

In the ever-evolving world of digital advertising, Google has introduced a new campaign type that is revolutionizing how brands reach potential customers—Demand Gen Campaigns. Designed to engage users before they search, this campaign type plays a crucial role in demand generation, helping businesses inspire interest and influence purchasing decisions early in the buying journey.

In this article, we’ll explore what a Demand Gen campaign is, how it differs from other campaign types, how it works, the benefits, targeting options, setup steps, best practices, and why it’s essential for modern marketers.

🔍 What is a Demand Gen Campaign?

A Demand Gen (Demand Generation) campaign is a new Google Ads campaign type launched in 2023, designed to help advertisers reach people across YouTube, Discover, and Gmail. These campaigns are intended to generate demand by creating visually compelling ads and delivering them across platforms where users are more likely to be inspired to explore and take action.

Unlike search or performance campaigns that respond to existing intent (like search queries), Demand Gen campaigns are proactive. They aim to create interest among potential customers before they even start searching for your product or service.

Google defines Demand Gen campaigns as:

“A campaign type that helps advertisers drive mid-funnel action by reaching users across Google’s most visually rich and engaging properties.”

🆚 How is Demand Gen Different from Discovery Campaigns?

Demand Gen is an evolution of Discovery campaigns, but it brings major improvements. Here are the key differences:

Demand Gen campaigns are much more dynamic, AI-driven, and multi-format, allowing marketers to use video + image creatives together for stronger impact.

🎯 Where Do Demand Gen Ads Appear?

Demand Gen ads are shown across Google’s most immersive platforms, where users spend time discovering new content:

1. YouTube Home Feed

   • Before videos, in-feed recommendations, Shorts.

2. Google Discover Feed

   • The personalized content feed on Android, iOS, and Chrome.

3. Gmail Promotions & Social Tabs

   • Visual banners in inboxes of target users.

These placements are perfect for influencing users in the mid-funnel phase — when they may not be actively searching, but are open to discovering new products or services.

🤖 How Does Google Target Users in Demand Gen?

Google uses AI-powered audience targeting and your first-party data to reach people who are more likely to be interested in your business. Demand Gen supports the following targeting methods:

• Custom Segments – Based on search behavior, app usage, and YouTube activity.

• Lookalike Segments – Create audiences similar to converters or website visitors.

• In-market Audiences – Users actively researching a category (e.g., travel, gadgets).

• Remarketing Lists – Retarget people who’ve visited your site or app.

• Customer Match – Upload email lists and target existing leads.

• Interest-Based Segments – Based on user preferences and affinities.

You can also layer demographics, locations, and device preferences for more precise control.

📦 What Ad Formats Are Supported in Demand Gen Campaigns?

Demand Gen campaigns support a variety of immersive ad creatives:

1. Image Ads

• Static visuals with headlines and CTAs.

• Ideal for showcasing product collections, offers, or brand imagery.

2. Carousel Ads

• Swipeable cards (3–10 images) with individual headlines/links.

• Great for storytelling, product showcases, or multi-offer promotions.

3. Video Ads

• YouTube in-feed and pre-roll video formats.

• Can use existing YouTube videos or upload new ones.

4. Ad Combinations (Multi-Format)

• Google uses AI to test combinations of your creatives (video + image) and selects the best-performing layouts automatically.

Tip: Upload multiple assets for headlines, descriptions, images, and videos to let Google’s machine learning build high-performing variations.

📈 What Goals Can You Achieve with Demand Gen?

Demand Gen campaigns are best suited for:

• Brand Awareness

• Product Discovery

• Lead Generation

• Traffic Growth

• Conversions (Mid-funnel)

They’re not ideal for bottom-funnel direct conversions unless combined with remarketing.

🛠️ How to Set Up a Demand Gen Campaign

Here’s a step-by-step guide to creating a Demand Gen campaign:

Step 1: Choose Your Objective

• In Google Ads, click “New Campaign”

• Select objective: Sales, Leads, Website Traffic, or Product/Brand Consideration

Step 2: Select Campaign Type

• Choose Demand Gen from the campaign types

Step 3: Define Audience

• Choose audience segments (custom, lookalike, in-market, etc.)

• Optionally add remarketing or customer match lists

Step 4: Set Budget & Bidding

• Select bidding strategy:

  • Maximize Conversions

  • Maximize Conversion Value

• Add optional Target CPA or Target ROAS

Step 5: Add Creative Assets

• Upload:

  • Headlines

  • Descriptions

  • Logos

  • Images (1200×628, 1:1)

  • YouTube videos

  • Call-to-action buttons

Step 6: Review & Launch

• Double-check targeting, bidding, creatives, and placements

• Launch the campaign and let Google optimize performance using its AI

✅ Best Practices for Demand Gen Campaigns

To get the most out of your Demand Gen campaigns, follow these tips:

1. Use High-Quality Visuals

• Invest in compelling images and short videos

• Test lifestyle shots, product demos, and user-generated content

2. Leverage First-Party Data

• Upload email lists and remarketing data to build lookalike audiences

3. Combine Video + Images

• Let Google optimize ad combinations for higher engagement

4. Give It Time

• Allow campaigns to run for at least 2 weeks to exit the learning phase

5. Monitor Top Assets

• Use asset-level reporting to identify which creatives drive performance

6. Use Broad Targeting with Smart Bidding

• Trust Google AI to find new potential customers beyond your core base

📊 How Do You Measure Success?

Google provides detailed reporting on:

• Clicks, Impressions, CTR

• Conversions & Conversion Value

• View-through Conversions (for video)

• Engagement metrics (watch time, swipes)

• Top-performing assets & combinations

These insights help you refine creatives, optimize audiences, and improve ROI.

💡 Why Should You Use Demand Gen Campaigns?

Here are 6 reasons why advertisers love Demand Gen campaigns:

1. Visual Impact – Leverage rich creative formats (carousel, video, image).

2. Cross-Platform Reach – One campaign runs across YouTube, Gmail, Discover.

3. AI Optimization – Google finds high-intent audiences using machine learning.

4. Low-Funnel & Mid-Funnel Performance – Target users beyond intent-based search.

5. High Engagement – Appears in feeds where users are relaxed and browsing.

6. First-Party Data Integration – Ideal for retargeting and customer match strategies.

🔚 Final Thoughts

Google’s Demand Gen campaigns are a powerful tool for advertisers who want to inspire action before intent is formed. By using visually rich creatives and Google’s massive reach across YouTube, Discover, and Gmail, you can build brand affinity, drive traffic, and generate new leads even before potential customers begin searching.

Whether you’re a brand trying to break into a new market or a seasoned advertiser looking to scale, Demand Gen offers the targeting precision and creative flexibility to generate meaningful demand at scale.