Google Demand Gen Campaigns are here, Get Ready to Move Over from Google Discovery Ads

Google is constantly innovating and evolving its advertising products to meet the changing needs and expectations of both advertisers and users. One of the latest developments in this regard is the transition from Discovery campaigns to Google Demand Gen campaigns, a new campaign type that aims to drive demand from mid-funnel users across various platforms and formats.

In this article, we will explore what Google Demand Gen campaigns are, how they differ from Discovery campaigns, and what advertisers need to know and do to embrace this change and optimize their advertising strategies.

What is Google’s Demand Gen Campaign and Why Should You Care?

Google introduced Discovery campaigns in May 2019 as a way to help advertisers reach potential customers who are open to new products and services across Google’s properties, such as YouTube, Discover, and Gmail. Discovery campaigns used machine learning to automatically optimize ad delivery based on the user’s intent and context.

However, on August 15, 2023, Google Ads liaison Ginny Marvin announced via Twitter and LinkedIn that Google is transitioning from Discovery campaigns to Demand Gen campaigns, a new campaign type that was introduced in June 2023. Marvin stated that the change is part of Google’s vision to move towards an AI-first environment in Google Ads, where advertisers can leverage the power of artificial intelligence (AI) to create more engaging and effective ads for their target audiences.

Demand Gen Campaigns: The New Way to Drive Demand from Mid-Funnel Users

Demand Gen campaigns are Google’s newest campaign type that aims to drive demand from mid-funnel users who are already aware of a product or service category but have not yet decided on a specific brand or solution. Demand Gen campaigns use AI to deliver ads that match the user’s interests, preferences, and behaviour across different platforms and formats.

Unlike Discovery campaigns, which focused on reaching users in the early stages of the customer journey, Demand Gen campaigns target users who are more likely to take action after seeing an ad. Demand Gen campaigns also offer unique features that are not available in other campaign types, such as:

• The ability to use first-party data within the campaigns, such as customer match lists or website visitors.
• The option to expand to lookalike audiences, which are similar to the existing customers or prospects.
• The choice of smart bidding strategies that optimize for conversions, conversion value, or maximizing clicks.
• The variety of innovative ad formats that are designed to capture the user’s attention and interest.

Innovative Ad Formats in Demand Gen Campaigns

One of the most distinctive aspects of Demand Gen campaigns is the “social” nature of the ads that are displayed across different platforms. These ads are designed to mimic the look and feel of organic content that users see on social media platforms, such as YouTube, YouTube Shorts, Discover, and Gmail. These platforms have a large and engaged user base that can be reached by advertisers through Demand Gen campaigns.

Demand Gen campaigns offer a variety of ad formats that advertisers can choose from depending on their goals and creative assets. These ad formats include:

• Short-form videos: These are vertical or horizontal videos that are up to 15 seconds long and can be displayed on YouTube or YouTube Shorts. These videos can showcase the product or service features, benefits, or testimonials in a captivating way.
• Carousels: These are horizontal or vertical swipeable cards that can feature up to 10 images or videos. These cards can highlight different aspects of the product or service, such as features, benefits, reviews, or offers.
• Portraits: These are vertical images or videos that occupy the full screen of the user’s device. These images or videos can create an immersive experience for the user and showcase the product or service in a compelling way.
• Square images: These are square images that can be displayed on Discover or Gmail. These images can capture the user’s attention with a clear and concise message about the product or service.

Leveraging Data and Smart Bidding in Demand Gen Campaigns

Another key feature of Demand Gen campaigns is the ability to leverage data and smart bidding to optimize the campaign performance. Demand Gen campaigns allow advertisers to use their own first-party data within the campaigns, such as customer match lists or website visitors. This data can help advertisers reach their existing customers or prospects with relevant and personalized ads.

Additionally, Demand Gen campaigns enable advertisers to expand their reach to lookalike audiences, which are similar to their existing customers or prospects. These audiences can help advertisers find new customers who are likely to be interested in their product or service category.

Furthermore, Demand Gen campaigns offer smart bidding strategies that can help advertisers achieve their goals, such as conversions, conversion value, or maximizing clicks. Smart bidding uses machine learning to automatically adjust the bids based on the user’s context and intent, such as location, device, time of day, and more.

Transition Timeline from Discovery to Demand Gen

Google has announced a timeline for the transition from Discovery campaigns to Demand Gen campaigns, which consists of three phases:

• Phase 1- Beta sign-up and immediate access: Advertisers can sign up for the Demand Gen beta and get immediate access to create Demand Gen campaigns. This phase started on August 15, 2023 and will continue until October 2023.
• Phase 2- Availability for all advertisers: Demand Gen campaigns will be available for all advertisers starting from October 2023. Advertisers can create new Demand Gen campaigns or upgrade their existing Discovery campaigns to Demand Gen campaigns.
• Phase 3- Conclusion: All active Discovery campaigns will be automatically upgraded to Demand Gen campaigns by March 2024. Discovery campaigns will no longer be available as a campaign type after this date.

Considerations for Advertisers

The transition from Discovery campaigns to Demand Gen campaigns may raise some questions and concerns for advertisers, especially regarding reporting, audiences, and metrics. Here are some of the considerations that advertisers need to be aware of and address:

• Placement-level reporting: Demand Gen campaigns do not provide placement-level reporting, unlike Discovery campaigns. This means that advertisers will not be able to see the performance of their ads on each platform, such as YouTube, YouTube Shorts, Discover, or Gmail. Instead, they will only see the aggregated performance of their ads across all platforms.
• Audience overlap: Demand Gen campaigns may have some audience overlap with other campaign types, such as Video action campaigns or Display campaigns. This means that some users may see the same or similar ads from different campaign types. Advertisers should monitor their frequency capping and budget allocation to avoid overexposure or overspending.
• Metric volatility: Demand Gen campaigns may experience some volatility in metrics during the migration period, especially with YouTube placements. This is because YouTube placements will be moved from Discovery campaigns to Video action campaigns before being upgraded to Demand Gen campaigns. This may cause some fluctuations in impressions, clicks, conversions, and costs.
• Context changes: Demand Gen campaigns may have different engagement levels than Discovery campaigns due to the changes in the user’s context and intent. For example, users who see ads on YouTube Shorts may have a lower attention span than users who see ads on Discover. Advertisers should account for these context changes and adjust their expectations and goals accordingly.

Advertiser’s Creative Approach in Demand Gen Campaigns

One of the most important factors for success in Demand Gen campaigns is the advertiser’s creative approach. Demand Gen campaigns require a strong focus on the visual aspects of the ads, as they are designed to blend in with the organic content that users see on social media platforms.

Advertisers have an opportunity to plan and optimize their creatives for a cohesive user experience across different platforms and formats. Some of the best practices for creating compelling creatives for Demand Gen campaigns are:

• Use high-quality images and videos that are clear and relevant to the product or service category.
• Use catchy headlines and descriptions that highlight the value proposition or unique selling point of the product or service.
• Use a consistent brand identity and tone of voice across all platforms and formats.
• Use a clear call to action that encourages the user to take the next step in the customer journey.
• Test different creatives and variations to find the best performing ones for each platform and format.
• Monitor the frequency capping and budget allocation to avoid overexposure or overspending.
• Adjust the expectations and goals based on the user’s context and intent.
• Leverage first-party data and lookalike audiences to reach more relevant users.
• Choose smart bidding strategies that match the campaign objectives.

Harnessing AI in Demand Gen Campaigns

The transition from Discovery campaigns to Demand Gen campaigns is a reflection of Google’s commitment to an AI-first environment in Google Ads. Google is using AI to optimize every aspect of advertising, from targeting and ad placement to bidding and creative delivery.

Demand Gen campaigns are an example of how advertisers can harness the power of AI to create more engaging and effective ads for their target audiences. By using AI-driven targeting and ad placement, advertisers can reach users who are more likely to be interested in their product or service category across different platforms and formats. By using AI-driven bidding and creative delivery, advertisers can optimize their bids and creatives based on the user’s context and intent.

Google’s AI-first environment is not only beneficial for advertisers but also for users. By delivering more relevant and personalized ads, Google is enhancing the user experience and satisfaction across its properties.