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Demand Gen Campaigns

Most advertising on Google captures demand that already exists. Demand Gen campaigns work differently, reaching people before they search.

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Most advertising on Google captures demand that already exists. Someone searches, you show an ad. Demand Gen campaigns work differently. They place visual ads in YouTube feeds, Gmail, and Google Discover to reach people before they search, building interest and consideration that drives conversions later. For businesses that rely entirely on Search campaigns, Demand Gen opens a channel to reach potential customers who haven’t started looking yet but match the profile of people who buy from you.

At Good Pup Digital, we manage Demand Gen campaigns as part of a full-funnel strategy, not as a standalone experiment. Demand Gen works best when it feeds into Search and Performance Max campaigns that capture the demand it creates. A prospect sees your Demand Gen ad in their YouTube feed on Tuesday, then searches your service category on Thursday. Your Search campaign captures that click. Without Demand Gen, that person may never have searched at all. That also means the KPIs are different. We measure success through view-through conversions and assisted conversions rather than direct clicks, because Demand Gen reaches people before they search for you.

Where Demand Gen Ads Actually Appear

Demand Gen campaigns run across three Google properties, each with different user behavior and ad formats:

YouTube: In-feed video ads and Shorts ads that appear alongside organic content. Users are in a browsing and discovery mindset, not actively searching. This is where visual storytelling and product demonstrations work well. Unlike dedicated YouTube campaigns that offer full targeting and format control, Demand Gen’s YouTube placements focus specifically on conversion-optimized delivery within feed environments.

Gmail: Ads appear in the Promotions and Social tabs. They look like collapsed emails and expand when clicked, showing your images, headlines, and call to action. Gmail ads reach people in a personal, attention-focused environment where they’re already reading and processing information.

Google Discover: This is Demand Gen’s most unique placement. Discover is the personalized content feed on the Google app and mobile Chrome homepage. Hundreds of millions of people scroll Discover daily, seeing articles, videos, and products tailored to their interests. Demand Gen is one of the only ways to place ads natively in this feed. Your ad appears between news articles and content recommendations, reaching users in a content consumption mindset. No other Google campaign type gives you this level of native access to the Discover feed.

What We Manage

Creative Strategy and Asset Development

Demand Gen is a visual-first campaign type. The quality of your images and video directly determines performance. We develop creative assets sized and formatted for each placement: landscape images for Discover, square images for Gmail, vertical video for Shorts, and standard video for in-feed YouTube. Each asset group targets a distinct audience segment or stage of the buying journey. A home services business might run one asset group with project inspiration imagery for homeowners in consideration mode, and another with offer-driven creative for people closer to hiring.

Audience Targeting and Lookalike Segments

Demand Gen campaigns offer targeting options that Search campaigns don’t have. Lookalike segments let you reach new users who share characteristics with your existing customers. We build these from your customer email lists, website converters, and CRM data. In-market audiences target people actively researching your category. Custom segments let us target based on search behavior, app usage, and website visits. We layer these audiences to create a targeting strategy that balances reach with relevance, starting narrow with high-intent signals and expanding as the algorithm learns which audience combinations convert.

Bidding Strategy and Funnel Alignment

Demand Gen supports both conversion-based and engagement-based bidding. For businesses with strong conversion tracking, we use maximize conversions or target CPA to let the algorithm find users most likely to convert. For campaigns focused on building awareness and consideration, click-based bidding ensures you’re paying for engagement rather than impressions. We match the bidding strategy to your position in the funnel: awareness campaigns optimize for reach and clicks, while retargeting campaigns within Demand Gen optimize for conversions.

Conversion Path Tracking

The biggest challenge with Demand Gen is attribution. Someone sees your ad in Discover, doesn’t click, but searches your business name two days later and converts through a Search ad. The Search campaign gets the conversion credit, but Demand Gen created the awareness. We set up view-through conversion tracking and cross-campaign attribution analysis to understand Demand Gen’s true impact. We also monitor branded search volume before and after launching Demand Gen: if branded searches increase, Demand Gen is doing its job even when the direct conversion numbers look modest.

A/B Testing and Creative Optimization

Demand Gen runs A/B experiments at the campaign level, letting you test different audience strategies, creative approaches, and bidding configurations against each other. We use these experiments to systematically identify what works: which image styles drive clicks in Discover, which video lengths perform best on YouTube Shorts, which audience segments convert at the lowest cost. Creative fatigue happens faster in feed environments because users see the same ads repeatedly. We rotate creative regularly and monitor engagement metrics to catch performance decline before it impacts results.

Demand Gen vs Your Other Campaigns

Understanding where Demand Gen fits relative to your other channels prevents overlap and wasted budget:

  • Demand Gen vs Search: Search captures existing demand from people actively looking. Demand Gen creates new demand by reaching people before they search. They work together: Demand Gen drives awareness, Search captures the resulting interest. Running both means you’re generating demand and harvesting it.
  • Demand Gen vs Performance Max: PMax also runs in YouTube, Gmail, and Discover, but with less control over creative and audience targeting. Demand Gen gives you more granular targeting options, lookalike audiences, and A/B testing capabilities. We typically use Demand Gen for upper-funnel consideration and PMax for conversion optimization across all channels.
  • Demand Gen vs YouTube Ads: Dedicated YouTube campaigns offer full control: skippable in-stream, bumper ads, masthead placements, and detailed audience targeting. Demand Gen’s YouTube component is limited to feed and Shorts placements. If YouTube is a major channel for you, run both: YouTube campaigns for brand building and Demand Gen for conversion-focused feed placements.
  • Demand Gen vs Display: Display campaigns show banner ads across the Google Display Network. Demand Gen shows visual ads in YouTube, Gmail, and Discover feeds. The environments are different: Display is banner advertising across websites, Demand Gen is native feed advertising in Google’s own properties. Display retargeting is better for recapturing website visitors. Demand Gen is better for reaching new audiences in high-attention environments.
  • Demand Gen vs Meta: Meta’s feed-based ad experience is the closest comparison to Demand Gen. Both reach users in browsing mode with visual creative. The difference is inventory: Meta reaches people on Facebook and Instagram, Demand Gen reaches them on YouTube, Gmail, and Discover. Running both expands your upper-funnel reach across platforms.

Common Demand Gen Mistakes

Using Search creative for a feed environment. Text-heavy ads with generic stock photos fail in Demand Gen because they’re competing with organic content in YouTube feeds and Discover. Users are scrolling through articles, videos, and recommendations. Your ad needs to look like it belongs there, not like a banner ad pasted into a content feed. We create native-feeling visual assets that match the browsing context of each placement.

Expecting direct-response metrics from an awareness channel. Demand Gen sits higher in the funnel than Search. Judging it purely on cost per conversion misses its value. The right metrics are assisted conversions, view-through conversions, and branded search lift. If your branded search volume increases after launching Demand Gen, the campaign is creating demand even when the direct conversion numbers are small.

Running Demand Gen without Search to capture the demand it creates. Demand Gen builds awareness and consideration. If you don’t have Search campaigns running to capture the resulting searches, your competitors will. Demand Gen without Search is like running TV ads without being listed in the phone book. You’re paying to create interest that someone else converts.

Targeting too broadly. Demand Gen’s audience tools are powerful, but starting with wide-open targeting burns budget while the algorithm learns. We start with tight audience signals (customer lists, high-intent in-market segments) and expand gradually as conversion data accumulates. Broad targeting works once the algorithm has enough data to identify patterns.

Ignoring creative fatigue. Feed environments show your ads to the same audiences repeatedly. Performance degrades as users see the same images and videos multiple times. We monitor click-through rates and engagement metrics weekly and rotate creative before fatigue sets in. A Demand Gen campaign that looked great in month one can underperform by month three if the creative hasn’t been refreshed.

Not connecting to your CRM. Like all Google campaign types, Demand Gen performs better when it knows which leads became customers. Feeding offline conversion data back into the campaign lets the algorithm optimize for qualified leads rather than just form fills or clicks.

For businesses also running Shopping campaigns for products, Demand Gen can showcase your product imagery in Discover and YouTube feeds, driving product awareness to audiences who match your customer profile but haven’t searched yet. And if you’ve invested in Google Business Profile optimization, the brand awareness Demand Gen creates often translates to increased direct searches and GBP views as users who saw your ad later look you up by name.

Businesses using Local Services Ads for immediate lead capture can layer Demand Gen to build the brand recognition that makes their LSA listing stand out when a potential customer is comparing options. The familiarity factor from seeing your business in a Demand Gen ad days earlier can be the difference between someone choosing your LSA listing over a competitor’s.

Frequently Asked Questions

What is Google Demand Gen and how does it work?
Demand Gen is a campaign type that places visual ads in YouTube feeds, Gmail, and Google Discover. Unlike Search ads that respond to queries, Demand Gen proactively reaches potential customers based on their interests, browsing behavior, and similarity to your existing customers. It uses Google’s audience data to show your ads to people who are likely to be interested in your business but haven’t started actively searching yet.
How is Demand Gen different from Discovery campaigns?
Demand Gen replaced Discovery campaigns in late 2023. It runs on the same placements (YouTube, Gmail, Discover) but adds several features: video ad support, Shorts placements, lookalike audience segments, A/B experiments at the campaign level, and more bidding strategy options. If you were running Discovery campaigns before, Demand Gen is the upgraded version with more creative formats and targeting capabilities.
What kind of creative do I need for Demand Gen?
Demand Gen performs best with high-quality visual assets. At minimum, you need landscape images (1200×628), square images (1200×1200), and compelling headlines and descriptions. Video assets (horizontal, vertical, and square formats) significantly improve performance because they unlock YouTube feed and Shorts placements. Stock photos with text overlays typically underperform compared to authentic brand imagery, product photography, or video content that feels native to the feed environment.
How much should I budget for Demand Gen campaigns?
Budget depends on your goals and market. As a higher-funnel campaign, Demand Gen needs enough budget to reach meaningful audience sizes and generate sufficient data for the algorithm to optimize. We typically recommend starting with a daily budget that can generate at least 50 to 100 clicks per day, then adjusting based on conversion path data. Businesses spending less than $1,500 per month on Search and Performance Max should focus on those channels first before adding Demand Gen.
Can Demand Gen generate leads directly or is it only for awareness?
Demand Gen can drive direct conversions, especially when targeting warm audiences like website visitors, past customers, or lookalike segments built from converter data. However, its primary strength is in the consideration phase: introducing your brand and building familiarity that leads to conversions through other channels. The most effective approach uses Demand Gen for both: direct conversion campaigns targeting warm audiences, and awareness campaigns targeting new audiences that feed into your Search and PMax conversion campaigns.
How do I measure the true impact of Demand Gen?
Look beyond last-click conversion numbers. Set up view-through conversion tracking to capture users who saw your ad but converted later through a different channel. Monitor branded search volume before and after launching Demand Gen: an increase indicates the campaign is building awareness. Track assisted conversions in Google Analytics to see where Demand Gen appears in conversion paths. We also compare total account conversions (not just Demand Gen conversions) before and after launch to measure the incremental lift across all campaigns.
Next Steps

Ready to Reach New Customers Before They Search?

Demand Gen campaigns put your business in front of qualified audiences across Gmail, YouTube, and Discover before they ever type a search query. We build campaigns that generate interest, nurture intent, and convert new customers who would never have found you through search alone. Get in touch or call us at (859) 905-9573 for a free consultation.

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Prefer to talk? Call (859) 905-9573.

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