What is Demand Gen?

Demand generation is a marketing strategy that creates interest in a product or service, targeting both aware and unaware audiences. It focuses on addressing customer challenges, offering solutions, and building trust to guide potential buyers from awareness to conversion. In this article, we’ll explore Google’s Demand Gen campaigns, which use visually engaging ads on platforms like YouTube, Gmail, and the Discovery Feed to reach users before they actively search for solutions. These campaigns help businesses spark curiosity, build brand awareness, and drive action, making them a key tool in modern marketing strategies.

What is the difference between DG and discovery campaigns?

Google Discovery Ads are visually engaging, mobile-friendly image-based advertisements that appear across multiple Google platforms. Rather than relying on keyword-based targeting, these ads leverage Google’s audience signals, including user browsing history, app interactions, and video consumption habits. They are displayed on the Google Discover feed, YouTube’s homepage, and Gmail’s Social & Promotions tabs, making them a cost-effective solution for advertisers looking to repurpose their social media creatives for broader exposure.

How Demand Gen Campaigns Stand Out

Google’s Demand Gen campaigns build upon the foundation of Discovery Ads while introducing several improvements that enhance their effectiveness. Here’s how they differ:

1. Extended YouTube Reach
   • Discovery Ads appear on Discover, Gmail, and limited sections of YouTube (Home and Feed).
   • Demand Gen expands placement to YouTube Shorts and In-Stream videos, increasing visibility across both short-form and long-form content.
2. Increased Video Integration
   • Discovery Ads primarily showcase static image ads.
   • Demand Gen supports up to five videos per campaign, alongside multiple image assets, headlines, and CTAs, ensuring adaptability across various screen sizes and placements.
3. Enhanced Creative Testing & Previews
   • Discovery Ads offer basic previews for ad placements.
   • Demand Gen introduces an advanced preview tool, along with A/B testing capabilities to determine which images and videos resonate most with the audience.
4. Expanded Bidding Strategies
   • Discovery Ads focus on conversion-based smart bidding strategies like Maximize Conversions and Maximize Conversion Value.
   • Demand Gen provides additional flexibility by including Maximize Clicks, making it a viable option for advertisers looking to drive website traffic or influence offline sales.
5. Advanced Performance Insights
   • Demand Gen enhances reporting by offering Brand Lift, Search Lift, and Conversion Lift analyses, giving advertisers a clearer picture of how their campaigns impact overall brand awareness and customer actions.
6. Lookalike Audience Targeting
   • Discovery Ads previously used Google’s now-retired Similar Audiences.
   • Demand Gen replaces this with Lookalike Audiences, which allow advertisers to expand their reach by targeting users who share characteristics with existing customer lists. Options include Narrow (5%), Balanced (5%), and Broad (10%) reach settings, similar to Facebook’s approach to audience expansion.

With Demand Gen campaigns, Google aims to provide advertisers with more creative flexibility, wider reach, and improved audience targeting, aligning its advertising ecosystem more closely with social media ad formats. To maximize success, advertisers should experiment with different creative assets, bidding strategies, and audience segmentation to find the best approach for their campaigns.

Where does demand gen campaigns play?

Demand Generation campaigns are mainly executed on Google’s visually-driven and discovery-oriented platforms, such as:

YouTube (Home feed, Watch feed, Shorts feed, and In-stream video ads)
Gmail (Promotions and Social tabs)
Google Discover (The customized news feed on mobile devices)

These ad placements enable brands to connect with users in a visually captivating manner as they explore content, rather than depending on intent-driven searches like those used in Search campaigns.

What is the difference between DG and pmax?

• Performance Max (PMAX) relies on AI-driven automation, offering broad reach across multiple Google networks but with less targeting control.
• Demand Gen provides more manual control over targeting and placements, focusing on top-to-mid funnel awareness and engagement.

When to Use PMAX:

• Best for full-funnel scaling and maximizing conversions.
• Ideal for supplementing search campaigns and expanding reach (e.g., Display, Shopping, Maps).
• Requires strong conversion tracking for success.

PMAX Limitations & Workarounds:

• Limited targeting/reporting: Use negative keyword lists via Google Support and custom scripts for insights.
• No direct campaign-level negative keywords: Use account-level negatives or request exclusions.

When to Use Demand Gen:

• Suitable for advertisers prioritizing audience control and lead quality.
• Works well for brand awareness and mid-funnel engagement.
• Smaller reach than PMAX but offers flexibility in audience targeting.

Demand Gen Limitations & Workarounds:

• Less reporting transparency: Basic segmentation is available, but YouTube channel placements are now visible.

Choosing the Right Campaign Type:

• PMAX: Best for fast scaling, automated reach, and maximizing conversions.
• Demand Gen: Best for manual targeting, lead quality, and controlled audience engagement.
• Both require strong conversion signals for success.

Google Ads Updates in 2025:

• Demand Gen now uses audience signals like PMAX but still allows manual targeting.
• Video Action Campaigns are merging into Demand Gen.
• PMAX now supports image ad uploads and brand guideline integration.

Your choice between PMAX and Demand Gen depends on your goals—PMAX is ideal for automation and scaling, while Demand Gen is better for precise targeting and lead quality.

Conclusion

Demand Generation campaigns are a powerful tool for reaching potential customers before they actively search for a solution, making them ideal for building awareness and engagement. Compared to Discovery Ads, Demand Gen campaigns offer expanded YouTube reach, enhanced video integration, better creative testing, and advanced audience targeting. While Performance Max focuses on full-funnel automation, Demand Gen gives advertisers greater control over targeting and placements, making it a strong choice for those prioritizing lead quality and audience engagement.

If you’re looking to optimize your Demand Gen strategy or need expert marketing advice, visit dimah.ca for professional consultation.