Introducing Google Ads Demand Gen Campaigns

Changes are a constant presence in Google Ads as they adapt their suite of campaigns to best align with the ever-evolving landscape of search and digital marketing.

The next major change on the horizon involves Google bidding farewell to Discovery campaigns, making way for a new campaign known as "Demand Gen."

What is Demand Gen?

Demand Gen is designed to cater to social-based advertising, moving away from traditional keyword targeting. This approach is more similar to how Facebook ads operate, focusing on engaging audiences through visually compelling content rather than targeting specific search queries.

Platforms for Demand Gen Ads

Demand Gen ads will exclusively appear on the following platforms:

• YouTube Shorts
• YouTube In-Stream
• YouTube In-Feed
• Discover
• Gmail

Notably, there won't be any ads displayed on the search, shopping, or display networks. This setup has significant implications for the campaign's success, which will depend heavily on:

• The quality of your video and image ads, with a particular emphasis on video.
• The size and quality of your target audiences.

Key Factors for Success

Ad Quality

Given the absence of keyword targeting and the placement of ads on social platforms or in contexts unrelated to targeted searches, the effectiveness of your ads will be paramount in determining your campaign's success. High-quality ads will yield superior results.

Audience Size and Quality

Furthermore, audience size and quality are central to achieving success. Google has highlighted two core audience groups you can target:

• Lookalike audiences (similar to your current converters/customers).
• Existing customers.

Initial approaches might involve targeting lookalike audiences with introductory offers, such as first-purchase discounts for newsletter subscribers. Alternatively, you could exclusively target existing customers with limited-time or exclusive sales. In both cases, the critical factor remains the size and quality of your audiences, significantly influencing your campaign's outcome.

Targeting Strategies

Lookalike Audiences

Lookalike audiences are individuals who share characteristics with your current customers. These groups can be highly effective because they have a higher likelihood of converting based on their similar interests and behaviors. When using Demand Gen campaigns, start by creating compelling introductory offers to attract these potential customers. Examples include first-purchase discounts, free trials, or special promotions for newsletter sign-ups.

Existing Customers

Focusing on existing customers can be a powerful strategy for Demand Gen campaigns. These customers are already familiar with your brand and have demonstrated interest in your products or services. Target them with exclusive sales, loyalty rewards, or early access to new products. This approach not only drives repeat business but also helps in building a loyal customer base.

Beta Testing Phase

Access and Eligibility

As of now, Demand Gen campaigns are in an "open beta" testing phase. Advertisers interested in participating must apply for testing access, which comes with specific spending guidelines. This beta phase primarily caters to larger advertisers. Google's goal is to gather substantial data before a full-scale release, ensuring the campaign's effectiveness and reliability.

Benefits of Participating in the Beta

Participating in the beta phase offers several benefits. Advertisers can gain early insights into how Demand Gen campaigns perform, allowing them to refine their strategies before the official launch. Additionally, beta testers can provide feedback to Google, potentially influencing the final product. This early access can give advertisers a competitive edge by being ahead of the curve in adopting new campaign types.

My Perspective on Demand Gen

When Performance Max was first introduced, I adopted a cautious approach. I refrained from using it for client campaigns during the initial 3-6 months. Instead, I conducted my own testing to gather valuable data and understand the campaign's nuances. This cautious approach allowed me to make informed decisions based on actual performance metrics.

Testing and Data Collection

For Demand Gen, I plan to follow a similar strategy. I will initially test these campaigns for my brands to gather positive data and test cases. This hands-on experience will help me understand the campaign's strengths and weaknesses, ensuring that I can optimize it effectively before recommending it to clients.

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Recommendations

Wait for Data

I recommend not immediately adopting Demand Gen as the go-to campaign for every client upon its launch. Instead, wait until you have gathered sufficient data from your own tests or from reliable sources. This approach minimizes risk and ensures that you can make data-driven decisions.

Monitor Industry Feedback

Keep an eye on industry feedback and case studies from early adopters. This information can provide valuable insights into best practices and potential pitfalls, helping you refine your campaign strategies.

In Closing

Demand Gen campaigns represent a significant shift in Google's advertising approach, focusing more on social-based targeting rather than traditional keyword-driven methods. By understanding the key factors for success and adopting a cautious, data-driven approach, advertisers can effectively leverage Demand Gen to reach their target audiences and achieve their marketing goals. Stay tuned for further updates and insights as this new campaign type evolves.