Google Ads Unveils New Demand Gen Updates to Drive Better Performance Across YouTube and Google’s Visual Surfaces

Google Ads has introduced new updates to Demand Gen campaigns, designed to help businesses enhance engagement, improve conversions, and maximize returns across YouTube, Discover, and Gmail.

With consumers increasingly turning to visual-first content for inspiration, brands need to show up in the right places at the right time. YouTube, in particular, has become a platform where users feel they are spending quality time, especially among Gen Z. Recognizing this shift, Google has expanded Demand Gen capabilities to give advertisers greater control, improved creative tools, and better performance insights.

"We know that advertisers need flexibility in how and where they show up. Demand Gen provides AI-powered tools that help brands reach their audience when they aren’t actively searching—on YouTube, Discover, and Gmail—while also offering the creative flexibility needed to craft high-performing ads," said Nicky Rettke, Vice President, Product Management, YouTube Ads.

Key Features of the Update 🔹 More Control Over Ad Placements – Advertisers can now customize where their ads appear, including targeting YouTube Shorts, Discover, and Gmail. Google Display inventory has also been added to extend reach further.

🔹 Creative Enhancements for Better Engagement – New AI-powered tools allow businesses to generate shorter, high-impact video versions at scale. Vertical 9:16 image ads are also being introduced for YouTube Shorts, enabling more immersive storytelling.

🔹 Stronger Retail & Shopping Features – Advertisers using Google Merchant Center can now show real-time local product availability in their ads, helping bridge online browsing with in-store shopping experiences.

🔹 Enhanced Reporting & Insights – New reporting metrics provide a clearer view of how Demand Gen campaigns compare to paid social advertising, helping businesses make better-informed budget decisions.

🔹 Transition from Video Action Campaigns – From April 2025, advertisers will no longer be able to create Video Action Campaigns, with full migration to Demand Gen beginning in July 2025. Businesses are encouraged to start upgrading now using Google’s upgrade tools, which retain historical campaign data and settings.

Impact on Businesses Early adopters of the updated Demand Gen campaign format have reported stronger returns. For instance, Marks & Spencer (M&S), in partnership with Incubeta, tested the new Demand Gen features and exceeded their forecasted ROAS by 186%, while lowering CPA by 66%.

With AI-driven personalization, better creative capabilities, and seamless omnichannel ad experiences, Demand Gen is positioned to help businesses stay ahead in a fast-evolving digital landscape.