Discover what Demand Gen is, Google's new mode for advertising campaigns, and the advantages it offers compared to Discovery.
YouTube is undoubtedly a prime choice for discovering and purchasing new products today. To adapt to this constantly evolving scenario, advertisers must adjust their strategies. This is why Demand Gen campaigns have been introduced, the next generation of Discovery campaigns, designed to capture users' interest on YouTube and Google through engaging ads and targeting solutions. Demand Gen is a new mode that allows brands to combine YouTube and Google Ads video and display formats to create effective campaigns.
Discovery campaigns, introduced in 2019, were based on interest targeting and used static ads. In contrast, Demand Gen campaigns are based on more advanced artificial intelligence that uses a combination of data and signals to determine which ads are best suited for each user.
This upgrade offers new features and benefits, such as increased engagement, advanced targeting, more ad formats, and advanced metric measurement.
What are Google Ads Demand Gen Campaigns?
Demand Gen is a type of Google Ads campaign that enables advertisers to reach a broad and relevant audience with visually appealing ads. These campaigns are powered by artificial intelligence (AI) and use a combination of audience targeting, discovery ads, and analytics to help advertisers achieve their marketing goals.
Demand Gen offers various formats to help businesses tell their stories, including short videos and carousels. The upgrade from Discovery campaigns allows for performance segmentation by format and offers new options for creative optimization. Demand Gen campaigns utilize AI-based measurements to optimize targeting, personalize content, measure performance in real-time, and identify growth opportunities. Additionally, it is possible to combine first-party data with Google interest signals to reach new customers and choose the bidding strategy that best fits the objectives.
Demand Gen campaigns provide an effective way to reach a broad and relevant audience with visually appealing ads. They allow for reaching a wider and more targeted audience, increasing visibility and generating demand.
Benefits of Demand Gen Campaigns
Demand Gen allows for the creation of personalized ads and maximizes targeted segmentation, offering brands a wider choice in content creation for their target audience. The benefits for advertisers include:
- Global Reach: Demand Gen campaigns can be displayed on various Google platforms, including YouTube, Discover, Gmail, and other partner sites and apps. This allows advertisers to reach a broad and relevant audience, regardless of location.
- Creative Visibility: Google's discovery ads are visually appealing formats that can be customized according to the brand and advertiser's goals. This helps capture users' attention and create a lasting impact.
- Better Targeting: Google's AI enables reaching an audience more relevant and interested in the advertised product or service.
- Improved Effectiveness: Demand Gen ads are more creative and engaging, making them more likely to capture users' attention.
Demand Gen campaigns offer the same benefits as Discovery campaigns but with new features, inventory, and insights. This mode allows reaching up to 3 billion active monthly users scrolling through their Google feeds like Gmail and Discover. They can be used to:
- Generate latent demand for a product or service
- Reach a wide target audience
- Strengthen the brand
- Find new potential customers
Google Ads Demand Gen offers greater reach, an improved ad creation process, and the ability to conduct A/B tests to maximize campaign performance. Through lookalike segments based on audience lists, campaigns can be made even more relevant than what was previously possible with Discovery.
Applications of Demand Gen Campaigns
Demand Gen campaigns can be utilized by a wide range of businesses, including:
- B2B companies: To generate leads and promote business products and services.
- B2C companies: To promote consumer products and services, as well as to create brand awareness.
- Non-profit organizations: To raise funds and awareness for important causes.
Demand Gen vs. Display Campaigns
In an article published by Google Adworld Experience on February 27, 2024, testing revealed that Demand Gen campaigns, based on artificial intelligence, outperformed Display campaigns in terms of overall conversions, mainly due to placements on YouTube. However, Display campaigns brought more targeted users to the website. In summary, Demand Gen campaigns are ideal for obtaining well-targeted traffic at a low cost, while Display campaigns are better for those with a limited budget requiring optimized results.
