As described in our module on AI Advertising Tools and Audience Selection, artificial intelligence helps quickly prepare various text and visual scenario variations without overspending the production budget.
“Demand Gen campaigns are the biggest Google Ads breakthrough since the introduction of Performance Max. They don't wait for a client to type a query into a search engine; instead, they engage people with powerful vertical video in YouTube Shorts and Discover feeds precisely when they are making a decision.”
Audience Segmentation: Lookalike and First-Party Data
The biggest asset of Demand Gen campaigns is enhanced Lookalike (similar user) segments. Based on your real buyer and CRM data, Google can find similar consumers with a 1%, 2% to 5% accuracy threshold.
In turn, collaboration with Meta advertising campaigns creates a powerful synergy: a unified visual message engages the customer across Instagram, YouTube, and Discover, strengthening brand trust before purchase.
- Shorts format: Verify that at least one 9:16 vertical video with a clear hook in the first 3 seconds is included in the Demand Gen group.
- Lookalike base: Ensure that a buyer list with at least 1000 contacts is used for creating lookalike audiences.
- Landing page: Check that the mobile landing page loads instantly and visually aligns with the ad video.
Frequently Asked Questions about Demand Gen Campaigns
How does Demand Gen differ from Performance Max?
Performance Max serves all channels, including search and shopping. Demand Gen focuses solely on visual and video channels (YouTube, Discover, Gmail), providing greater control over audiences and creative assets.
What is the minimum recommended budget for testing?
For the algorithm to complete its learning phase and find optimal bidding points, it is recommended to plan a daily budget at least 5 to 10 times above the target cost per acquisition (Target CPA).
Is Demand Gen also suitable for B2B industries?
Yes, especially in YouTube and Discover environments where decision-makers consume professional industry content. The key is to use a specific value proposition and precise Customer Match audience lists.
Want to ensure your Google Ads budget isn't wasted on empty clicks?
Request a 15-minute independent campaign audit. We'll review your account architecture and uncover up to 30% savings potential.
Fixed budget. No hidden fees or forced services.In 2026, automated bidding algorithms and AI agents demand even more precise human oversight and value-based data from real CRM revenue. Learn more in our Google Ads Campaign Audit.
In early 2025, Google fully replaced the Discovery format with Demand Gen campaigns. This move marks a shift towards visual and behavior-driven demand generation. Traditional search campaigns can only serve the audience actively searching for a solution. Demand Gen allows reaching buyers on YouTube Shorts, Discover, and Gmail before they even open a search engine. This article explores proper format preparation and campaign structure for maximum return.
Why Demand Gen Replaces Discovery and What It Means for Advertisers
User content consumption on mobile phones has dramatically changed: short vertical video formats dominate daily attention. Unlike the older Discovery format, which relied primarily on static images, Demand Gen's core engine is multimodal video and carousel content.
In the Google Ads campaigns we manage, we observe that businesses combining search campaigns with targeted Demand Gen delivery achieve a significantly more stable lead flow and lower overall customer acquisition costs.
The Importance of Video Formats in YouTube Shorts and Discover Feeds
For a campaign to perform with maximum return, a diversity of formats must be provided. The algorithm needs at least 3 vertical 9:16 videos (15-30 seconds), 2 horizontal 16:9 videos, and square images. If only one horizontal video is included in the campaign, the algorithm cannot fully compete in YouTube Shorts auctions.
As described in our module on AI Advertising Tools and Audience Selection, artificial intelligence helps quickly prepare various text and visual scenario variations without overspending the production budget.
“Demand Gen campaigns are the biggest Google Ads breakthrough since the introduction of Performance Max. They don't wait for a client to type a query into a search engine; instead, they engage people with powerful vertical video in YouTube Shorts and Discover feeds precisely when they are making a decision.”
Audience Segmentation: Lookalike and First-Party Data
The biggest asset of Demand Gen campaigns is enhanced Lookalike (similar user) segments. Based on your real buyer and CRM data, Google can find similar consumers with a 1%, 2% to 5% accuracy threshold.
In turn, collaboration with Meta advertising campaigns creates a powerful synergy: a unified visual message engages the customer across Instagram, YouTube, and Discover, strengthening brand trust before purchase.
- Shorts format: Verify that at least one 9:16 vertical video with a clear hook in the first 3 seconds is included in the Demand Gen group.
- Lookalike base: Ensure that a buyer list with at least 1000 contacts is used for creating lookalike audiences.
- Landing page: Check that the mobile landing page loads instantly and visually aligns with the ad video.
Frequently Asked Questions about Demand Gen Campaigns
How does Demand Gen differ from Performance Max?
Performance Max serves all channels, including search and shopping. Demand Gen focuses solely on visual and video channels (YouTube, Discover, Gmail), providing greater control over audiences and creative assets.
What is the minimum recommended budget for testing?
For the algorithm to complete its learning phase and find optimal bidding points, it is recommended to plan a daily budget at least 5 to 10 times above the target cost per acquisition (Target CPA).
Is Demand Gen also suitable for B2B industries?
Yes, especially in YouTube and Discover environments where decision-makers consume professional industry content. The key is to use a specific value proposition and precise Customer Match audience lists.
Want to ensure your Google Ads budget isn't wasted on empty clicks?
Request a 15-minute independent campaign audit. We'll review your account architecture and uncover up to 30% savings potential.
Fixed budget. No hidden fees or forced services.