Google has officially upgraded Demand Gen campaigns, bringing new features and enhanced AI capabilities to help advertisers create and convert demand more effectively across YouTube, Discover, Gmail, and now, Google Display.
At Digidarts, one of the Top Performance Marketing Agencies, we understand how critical AI-driven targeting, creative optimization, and omnichannel strategies are for maximizing conversions. With these new Demand Gen updates, marketers can expect better cross-channel performance, creative flexibility, and advanced analytics to refine their advertising efforts.
Here’s a deep dive into what’s new and how brands can leverage these updates for superior performance marketing in 2025.
1. More Control Over Ad Placement
One of the biggest advertiser pain points has been the lack of control over where Demand Gen ads appear. Google is now introducing expanded channel controls, allowing advertisers to:
- Choose specific placements across YouTube, Discover, and Gmail.
- Run targeted Demand Gen ads on YouTube Shorts for better engagement with mobile-first users.
- Expand reach with Google Display inventory, tapping into 90% of the global internet audience across 3 million+ sites and apps.
Key Takeaway: Marketers can customize their Demand Gen campaigns to focus on high-performing platforms and avoid placements that don’t align with their brand goals.
2. AI-Enhanced Creative Optimization
Google understands that great creatives drive better conversions. To help brands optimize their ad assets, Demand Gen now offers:
- 9:16 Vertical Image Ads for YouTube Shorts → More immersive ad experiences on short-form video platforms.
- Automated Video Enhancements → Resize, flip, and create shorter versions of existing video ads at scale.
- New Ad Preview Sharing → Share creative previews with stakeholders for quicker feedback and approvals.
Key Takeaway: Advertisers can now easily adapt video content for different placements and formats, leading to higher engagement and lower production costs.
3. Smarter Shopping & Omnichannel Features
For retailers and e-commerce brands, Google has introduced product feed integration into Demand Gen campaigns. This means:
- Product Feeds with Rich Details → Customers can now view full product details directly in the ad.
- Local Product Availability → Ads can now display real-time inventory updates for nearby store locations.
- Omnichannel Bidding Strategies → Optimize campaigns for both online sales and in-store visits.
Key Takeaway: These AI-driven shopping features create a seamless path to purchase, making Demand Gen a powerful tool for driving both digital and offline sales.
4. Better Performance Tracking & Paid Social Comparisons
To address cross-channel measurement challenges, Google is rolling out new reporting columns that help advertisers:
a) Compare Demand Gen performance vs. Paid Social ads.
b) Isolate the impact of Demand Gen from other Google campaigns.
c) Track View-Through Conversions (VTC) to align with social media attribution models.
Key Takeaway: Advertisers can now better evaluate how Demand Gen campaigns stack up against platforms like Meta, TikTok, and LinkedIn Ads.
5. The End of Video Action Campaigns (VACs) → Full Migration to Demand Gen
Google is officially phasing out Video Action Campaigns (VACs), with all remaining campaigns set to be upgraded automatically starting July 2025.
✔ April 2025 → No new Video Action Campaigns can be created.
✔ March 2025 → A self-service upgrade tool will be available to migrate campaigns manually.
✔ July 2025 → Google will auto-upgrade all remaining VACs to Demand Gen.
Key Takeaway: If you're still running Video Action Campaigns, now is the time to upgrade to Demand Gen to retain control over your settings and optimize for new features.
What This Means for Performance Marketers
The 2025 Demand Gen updates signal a shift toward AI-powered, cross-channel marketing strategies. For brands, this means:
- More flexibility in ad placements → Prioritize YouTube Shorts, Discover, Gmail, or Google Display based on campaign goals.
2. Improved creative adaptability → AI-powered tools help optimize videos for multiple formats and placements.
3. Enhanced retail & e-commerce performance → Smarter shopping ad experiences bridge the gap between online discovery and offline purchases.
4. Better measurement & reporting → New analytics tools allow marketers to benchmark Demand Gen campaigns against paid social performance.
Google latest Demand Gen features are designed to bridge the gap between brand discovery and conversions, giving advertisers AI-powered insights, flexible placement controls, and advanced creative optimization tools.
As one of the best digital marketing agency, we at Digidarts specializes in leveraging AI-driven ad strategies to maximize ROI across Google ecosystem. Whether you're upgrading from Video Action Campaigns or launching your first Demand Gen campaign, our expertise ensures you get the best results possible.
