Google is evolving Demand Gen from a discovery-focused tactic to a powerhouse for full-funnel performance, making YouTube the centerpiece for high-impact conversions.
Why Marketers Care
Demand Gen now fuses social-style ad formats with Google’s AI targeting, enabling campaigns that not only find new audiences but also drive sales, leads, and app installs—with data showing an average 26% year-over-year increase in conversions per dollar.
Standout New Features
- Target CPC Bidding: Align Demand Gen budgeting with social platforms for true apples-to-apples comparison.
- Channel Controls: Advertisers can focus campaigns on YouTube only, or expand reach to Display, Discover, Gmail, and Maps.
- Creative Tools: Integrate and adapt assets for Shorts and multi-channel placements effortlessly.
- Product Feeds & App Support: Integrating Merchant Center feeds yields a 33% conversion lift. App integrations now include iOS via Web-to-App Connect.
Performance By the Numbers
Demand Gen’s evolution from simple contextual matching to predicting user intent and purchase propensity is fueling its move into bottom-funnel territory, putting YouTube at the center of decisive conversions—not just upper-funnel awareness.
Next for Demand Gen
Watch for ongoing AI-driven creative enhancements, shoppable formats, and deeper cross-channel integrations—all designed to help marketers adapt and thrive in a rapidly shifting ad landscape.
The Takeaway
Marketers should seize the moment: repurpose existing creative, experiment, and leverage Google’s Demand Gen campaign upgrades. The era of Demand Gen as a mid-funnel experiment is over—it’s now a serious performance channel.
Credit: Original reporting and analysis by Search Engine Land.
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