Demand Gen Campaigns

Demand Gen Campaigns are a Google Ads campaign type that delivers visually rich, social-media-style ads across YouTube (including Shorts), Google Discover, and Gmail. They replaced Discovery campaigns in 2023 and are designed to generate demand among users who are browsing, watching, or reading — not actively searching — using image, video, and carousel formats with audience-based targeting.

Key Takeaways

• Demand Gen runs across YouTube (in-feed, in-stream, Shorts), Discover feed, and Gmail
• Replaced Discovery campaigns with added YouTube inventory and video support
• Supports image ads, video ads, and carousel formats in a single campaign
• Uses lookalike segments (similar to social media lookalike audiences) for prospecting
• Bidding options include Maximize Clicks, Maximize Conversions, and Target CPA

What Are Demand Gen Campaigns

Demand Gen Campaigns sit between Display (broad awareness) and Search (direct response) in the Google Ads funnel. They are designed to reach users in scrollable, content-rich environments with visually engaging ads that feel native to the feed experience.

Feature	Demand Gen	Display	Search
Placements	YouTube, Discover, Gmail	GDN (3M+ sites)	Search results
Ad formats	Image, video, carousel	Responsive display	Text (RSA)
User mindset	Browsing, discovering	Browsing	Searching
Lookalike targeting	Yes	No	No
Creative style	Social-media-like	Banner-like	Text-based

The key differentiator from Display campaigns is placement quality. Demand Gen ads appear only on Google-owned surfaces (YouTube, Discover, Gmail), not on third-party websites, resulting in higher-quality placements with better viewability.

How It Works

Demand Gen campaigns combine visual-first creative with audience-based targeting:

1. Build asset groups — provide images (1:1, 1.91:1, 4:5 ratios), videos (landscape, vertical, square), headlines, descriptions, logos, and optional carousel cards
2. Define audiences — use custom segments, in-market audiences, remarketing lists, and lookalike segments (based on your existing customer or converter lists)
3. Select bidding — choose from Maximize Clicks (awareness/traffic), Maximize Conversions (lead gen), or Target CPA (efficiency)
4. Google serves ads across YouTube home feed, Shorts feed, in-stream, Discover articles, and Gmail promotions tab
5. The algorithm optimizes creative combinations and audience allocation based on your conversion goal

Lookalike segments are unique to Demand Gen within Google Ads. You provide a seed audience (converters, customer list, or website visitors), and Google finds users with similar characteristics. You can set the lookalike scope from narrow (most similar) to broad (larger reach, less similar).

Practical Example

An online education company launches a Demand Gen campaign to drive course enrollment:

Setup:

• Seed audience: 5,000 past enrollees uploaded as a customer list
• Lookalike segment: “Narrow” (2-5% expansion)
• Assets: 3 product videos (15s, 30s, 60s), 5 lifestyle images, carousel of top courses
• Bid strategy: Target CPA at $80

Results after 30 days:

Placement	Impressions	Clicks	CTR	Conversions	CPA
YouTube In-Feed	400,000	8,000	2.0%	45	$71
YouTube Shorts	600,000	3,000	0.5%	12	$100
Discover	300,000	4,500	1.5%	28	$64
Gmail	150,000	2,000	1.3%	10	$90
Total	1,450,000	17,500	1.2%	95	$76

Analysis:

• Blended CPA of $76 beat the $80 target
• Discover delivered the lowest CPA ($64) with high engagement
• YouTube Shorts had the lowest CTR but massive reach — useful for awareness
• Lookalike audience outperformed in-market segments by 35% on CPA

Compared to the company’s Search campaigns at $45 CPA, Demand Gen is more expensive per conversion but reaches users who never would have searched for the product. Total conversions increased 25% with the addition of Demand Gen.

Why It Matters

Demand Gen campaigns address a critical gap in Google’s campaign ecosystem:

• Social media alternative — Demand Gen provides a YouTube/Discover-based alternative to Meta and TikTok ads, with similar visual formats and lookalike targeting but access to Google’s intent data
• Mid-funnel coverage — between broad Display awareness and high-intent Search, Demand Gen reaches users who are open to discovery but not actively searching. This is where brand preference is shaped.
• Higher-quality inventory — unlike Display ads on unknown third-party sites, Demand Gen serves exclusively on Google-owned surfaces with controlled ad experiences and higher viewability
• Lookalike prospecting — lookalike segments enable finding new customers who resemble your best existing customers, a capability previously only available on social platforms
• Creative flexibility — supporting image, video, and carousel formats in a single campaign lets you tell a richer story and test which format resonates with each audience

The main consideration is measurement. Like all upper-funnel campaigns, Demand Gen often influences conversions that are ultimately attributed to Search or direct channels. Track view-through conversions and monitor MER trends when scaling Demand Gen spend to validate total business impact.