Google launched Demand Gen campaigns as the replacement for Discovery Ads in October 2023, and in 2026 the format has matured into a central tool for visual advertising in Google ecosystem. Demand Gen fills the gap between Performance Max and YouTube campaigns — giving you control over creatives and audiences in a way PMax does not, while reaching users on YouTube (in-feed and Shorts), Gmail and the Discover feed.
What are Demand Gen campaigns and what they replaced
Demand Gen is Google campaign type for visual, discovery-based advertising. It replaced Discovery Ads and expanded reach to include YouTube in-feed and Shorts.
Three key differences from Discovery Ads: 1) YouTube placements, 2) video ads alongside image and carousel, 3) Lookalike segments based on your audiences.
Think of Demand Gen as Google answer to Meta Ads — visual advertising to audiences based on interests, behavior and similarity to existing customers, distributed across Google ecosystem with over 3 billion daily users (Google, "Demand Gen Launch Report," 2024).
Where Demand Gen ads appear
Demand Gen ads appear on three surfaces: YouTube (in-feed, Shorts, in-stream), Gmail (promotions and social tabs) and Google Discover (mobile news feed).
YouTube is the most important placement, accounting for 60-75 percent of impressions. YouTube Shorts has become especially valuable — over 2 billion logged-in users watch Shorts monthly (Google, "YouTube Shorts Statistics," 2025).
Gmail reaches users in their inbox. Discover targets users based on their interests and browsing history.
How Demand Gen differs from PMax and Search
Search captures existing demand. Demand Gen creates demand. Performance Max does both but with minimal control.
The advantage of Demand Gen over PMax is control. You choose creatives, audiences and know exactly where ads appear.
The disadvantage compared to Search is intent. Demand Gen traffic is colder. It works best alongside Search, not as a replacement. See our Performance Max guide and Google Ads guide.
Campaign setup and structure
Start with objective: Sales, Leads, Website traffic or Product and brand consideration. For most advertisers, Leads or Website traffic is the best starting point.
Structure with separate ad groups for different audiences or creative themes. Typical: Lookalike of converters, Interest-based targeting, Remarketing.
At LeapJet, we set up Demand Gen as part of a holistic Google Ads strategy. Contact us to discuss how Demand Gen fits your campaign structure.
Creative requirements: Image, video and carousel
Demand Gen supports three formats: Single image, video and carousel ads. Google recommends at least three aspect ratios: 1:1, 4:5 and 1.91:1.
Video ads should be delivered in landscape (16:9), portrait (9:16 for Shorts) and square (1:1). Videos under 15 seconds perform best for awareness.
Carousel ads show 2-10 cards. Google recommends at least 5 cards per carousel.
- Image: Deliver in 1:1, 4:5 and 1.91:1 — at least 3 variants
- Video: Deliver in 16:9, 9:16 and 1:1 — under 30 seconds for best performance
- Carousel: 2-10 cards with unique images and CTAs
- Headline: Max 40 characters — short and action-oriented
- Description: Max 90 characters
Audiences: Lookalike, custom and your data
Demand Gen offers three main targeting types: Your data (remarketing lists, customer lists), Custom segments (based on keywords and URLs) and Lookalike segments.
Lookalike segments are particularly powerful. Choose between narrow (2.5 percent), balanced (5 percent) and broad (10 percent) similarity. Start with balanced.
Custom segments based on keywords let you reach users who have searched specific terms. See our remarketing guide.
Bidding and optimization
Demand Gen supports Maximize clicks, Maximize conversions and Target CPA. For new campaigns without conversion data, start with Maximize clicks for 2-4 weeks.
Google recommends daily budget of at least 15 times your target CPA. Lower budgets mean longer learning periods and unstable results.
Demand Gen has a longer learning period than Search campaigns. Give it at least 2-3 weeks before making major changes.
Demand Gen for awareness versus conversion
For awareness: use video ads with Maximize clicks and broad Lookalike segments. For conversion: use image ads with Target CPA and narrow segments.
Combine both in a funnel: Demand Gen awareness builds the audience, remarketing converts it.
An advanced strategy: use Demand Gen to build engaged YouTube viewers, then remarket with Search campaigns. See our YouTube Ads guide.
Reporting and measurement challenges
Standard metrics are available, but the real challenge is attribution. Users who see Demand Gen ads often convert later via Search or direct.
Google offers data-driven attribution that includes Demand Gen in conversion paths. Many advertisers still use last-click, which systematically undervalues Demand Gen.
Evaluate based on assisted conversions and view-through conversions. See our conversion tracking guide. See the glossary for definitions of demand generation, campaign and conversion.
When to use Demand Gen versus other campaign types
Use Demand Gen when you want to create demand with visual content, when you need more control than PMax, or when you have strong creatives.
Use Search for high purchase intent. Use PMax for broad coverage with minimal effort.
The ideal Google Ads structure: Search plus Demand Gen plus PMax. Visit our PPC services.
Sources
Google, "Demand Gen Launch Report," 2024. Google, "YouTube Shorts Statistics," 2025. Google, "Demand Gen Best Practices Guide," 2025. Think with Google, "Demand Gen Benchmarks by Industry," 2025.
