Google pushes Demand Gen deeper into performance marketing

Google Ads’ Demand Gen campaigns – once thought of as mid-funnel discovery tools – are evolving into full-funnel, conversion-focused campaigns, with YouTube at the core.

Why we care. Marketers are under pressure to prove ROI across channels. Demand Gen now blends social-style ad formats with Google’s AI-driven targeting, giving advertisers new ways to drive sales, leads, and app installs from audiences they can’t reach elsewhere.

What’s new:

• Target CPC bidding: Advertisers can now align Demand Gen with social campaigns for apples-to-apples budget comparisons.
• Channel controls. Run ads only on YouTube, or expand to Display, Discover, Gmail, and even Maps.
• Creative tools. Features like trimming and flipping help repurpose social assets for Shorts and other placements, lowering barriers to entry.
• Feeds + app support. Product feeds in Merchant Center show a 33% conversion lift; Web-to-App Connect now extends to iOS for smoother in-app conversions.

By the numbers. According to Google advertisers using Demand Gen have seen on average:

• 26% YoY increase in conversions per dollar
• 33% uplift when attaching product feeds

Between the lines. Google says Demand Gen’s shift from contextual matching to predicting user intent and purchase propensity has made it a contender for bottom-funnel performance. In short: YouTube is no longer just discovery – it’s decision-making.

What’s next. Expect more AI-driven creative tools, expanded shoppable formats, and deeper integrations across channels.

The takeaway. Don’t wait for “perfect” YouTube creative. Lift, adapt, and test now — Demand Gen is no longer a mid-funnel experiment, it’s a performance channel.

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