What Is Google Ads Demand Gen and When Should I Use It?
What Is Google Ads Demand Gen and When Should I Use It?
Google Ads Demand Gen campaigns reach users across YouTube (in-feed, Shorts, in-stream), Gmail (Promotions and Social tabs), and Google Discover with visual, social-media-style ads. Demand Gen replaced Discovery campaigns in 2024 and delivers 3x higher click-through rates than traditional Display campaigns, making it ideal for mid-funnel awareness, consideration, and driving demand before users actively search.
How Does Demand Gen Differ from Performance Max?
| Feature | Demand Gen | Performance Max |
|---|---|---|
| Placements | YouTube, Gmail, Discover only | All Google properties (Search, Display, YouTube, Gmail, Discover, Maps) |
| Creative control | Full control over ad formats | Asset-based, Google assembles |
| Audience targeting | Detailed audience selection | Automated with audience signals |
| Bidding | Maximize clicks, conversions, or conversion value | Automated Smart Bidding |
| Best for | Mid-funnel demand creation | Full-funnel automation |
| Reporting transparency | Placement-level reporting | Limited placement breakdown |
Choose Demand Gen when you want control over creative and audience targeting on visual placements. Choose Performance Max when you want full-funnel automation and are comfortable with less transparency. Many advertisers run both — Demand Gen for controlled mid-funnel campaigns and Performance Max for automated full-funnel coverage.
What Creative Formats Work in Demand Gen?
Demand Gen supports three ad formats: single image ads (1200×628 landscape or 960×1200 portrait), carousel ads (2–10 cards, swipeable), and video ads (YouTube Shorts format and standard video). Video ads deliver the strongest engagement in Demand Gen — YouTube Shorts-style vertical video reaches users in an entertainment context where ad tolerance is higher. Carousel ads work well for product collections and multi-feature showcases. Image ads provide the simplest setup. Upload all three formats to give Google maximum flexibility. Creative should match the visual quality of organic YouTube and Discover content — native-feeling creative outperforms overtly promotional ads.
When Should I Use Demand Gen Campaigns?
Use Demand Gen in three scenarios. First, to build awareness and consideration before Search intent exists — reach potential customers before they start actively searching for your solution. Second, to create Facebook/Instagram-style visual campaigns within Google’s ecosystem — Demand Gen placements feel similar to social media scroll behavior. Third, to retarget YouTube and website audiences with visual storytelling at lower CPMs than Search campaigns. Demand Gen is not ideal for direct-response campaigns where immediate conversion is the goal — use Search or Shopping campaigns for bottom-of-funnel capture.
How Do I Target Audiences in Demand Gen?
Demand Gen offers detailed audience control: Custom Segments (people who searched specific terms on Google or visited specific URLs), your data (Customer Match lists, website visitors, YouTube viewers), lookalike segments (similar audiences based on your customer lists), and in-market and affinity audiences. The strongest Demand Gen targeting combines Custom Segments of people who searched competitor terms with lookalike audiences based on your customer list. This reaches people actively researching your category who have not yet visited your website — the ideal mid-funnel audience.
What Results Can I Expect from Demand Gen?
Demand Gen typically delivers CPMs of $5–$15 (cheaper than Search, comparable to Display), CTRs of 0.8–2.5% (3x higher than Display), and view-through conversion attribution within 30 days. CPA varies widely by industry and objective — awareness-focused Demand Gen campaigns should be measured on assisted conversions and view-through conversions, not last-click attribution. Google reports advertisers using Demand Gen alongside Search campaigns see 15–20% uplift in overall campaign performance because Demand Gen primes audiences who later convert through Search. Leo integrates Demand Gen performance data with Meta and LinkedIn campaigns for unified cross-platform demand generation.