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Google Demand Gen Campaigns: What They Are and When to Use Them

Demand Gen runs image and video ads on YouTube, Discover, Gmail and Display. Where it fits beside Performance Max, how to set it up and what to measure.

Updated 5 min readBy Tera Ads editorial teamFacts checked

On this page
  1. Where Demand Gen runs
  2. Demand Gen and Performance Max
  3. Setting it up
  4. Measuring Demand Gen honestly
  5. When to skip it
  6. Creative for Demand Gen
  7. Common mistakes
  8. Frequently asked questions

Demand Gen is Google's campaign type for reaching people before they search, with image and video ads on YouTube (including Shorts), Discover, Gmail, Maps and the Google Display Network. It replaced Video Action Campaigns and is now where new display campaigns are built. For D2C brands it's a prospecting and creative channel, closer to Meta than to Search, so feed it strong visuals, choose channels deliberately and judge it on Shopify orders after RTO, not on Google's view-heavy conversions.

Key takeaways

  • Demand Gen serves on YouTube, Shorts, Discover, Gmail, Maps and the Display Network, per Google's help pages.
  • Video Action Campaigns have been upgraded to Demand Gen, and new display campaigns are created inside Demand Gen.
  • You can let Google use all channels or choose specific ones at ad group level.
  • It suits brands with good creative and enough budget to test; Search and Shopping usually come first.
  • Measure it on incremental Shopify orders and RTO, because much of its credit comes from views.

Where Demand Gen runs

According to Google's Demand Gen help page, checked on 8 October 2026, the campaigns capture engagement and action across YouTube (including Shorts), Discover, Gmail, Maps and the Google Display Network. Channel controls let you keep "All Google channels" or choose placements yourself, such as YouTube in-stream, in-feed and Shorts, Discover, Gmail and the Display Network.

Two changes made it more important in 2025 and 2026:

  • Video Action Campaigns moved into Demand Gen. Google stopped new Video Action Campaigns in 2025 and upgraded existing ones; its upgrade page explains the process.
  • Display campaigns moved too. Google's help says new Google display campaigns can be created only within Demand Gen, with a migration tool for existing ones (Google Ads Help).

Demand Gen and Performance Max

Demand Gen and Performance Max compared.
Demand GenPerformance Max
Main jobReach new people with visual adsConvert across all of Google, including Search and Shopping
PlacementsYouTube, Shorts, Discover, Gmail, Maps, DisplayAll Google inventory, including Search and Shopping
ControlChoose channels and audiences per ad groupMostly automated, with asset groups and signals
CreativeImages, carousels, videosText, images, videos and your product feed
Best forProspecting and creative testingCapturing demand from shoppers ready to buy

Many D2C brands run Search and Shopping or Performance Max first, then add Demand Gen once they have creative that works on Meta and budget to test a new channel.

Demand Gen and Performance Max side by side
Demand Gen and Performance Max side by side

Setting it up

  1. Start with proven creative. Videos and images that already work on Meta are a good starting point, resized for each placement.
  2. Choose channels. Start with all channels, or limit to YouTube and Discover if Gmail or Display don't suit your product.
  3. Pick audiences. Your customer lists, site visitors and lookalike segments built from them, or Google's interest audiences.
  4. Set a conversion goal on purchases, with a budget large enough to get conversions every day.
  5. Add product feeds if you want shoppable formats that pull from Merchant Center.
  6. Tag links with UTMs so Shopify can record the orders; see the UTM guide.
Setting up a Demand Gen campaign
Setting up a Demand Gen campaign

Measuring Demand Gen honestly

Demand Gen reaches people who aren't searching, so many conversions Google reports follow views rather than clicks, and some of those buyers would have found you anyway. Check:

  • Shopify orders by UTM from Demand Gen campaigns.
  • Total store revenue when you start, stop or change Demand Gen, compared with similar weeks.
  • RTO on its orders, because prospecting audiences can refuse more COD orders.

For a cleaner answer, run a holdout or geographic test; incrementality testing explains how.

When to skip it

Skip or delay Demand Gen if your Search and Shopping campaigns aren't profitable yet, if you don't have creative that holds attention, or if budget is too small to get daily conversions. It's a growth channel, not a fix for weak fundamentals.

Creative for Demand Gen

Demand Gen ads appear in feeds where people scroll, so the creative has the same job as on Meta: stop the thumb in the first second.

  • Images. Provide landscape, square and portrait versions, so the ads fit each placement without awkward crops. Lifestyle shots and close-ups usually beat plain packshots in these feeds.
  • Carousels. Useful for showing several products, angles or uses in one ad.
  • Video. Vertical video is essential if you want to appear in YouTube Shorts; horizontal and square suit in-stream and in-feed. Show the product early, add captions and keep the brand visible.
  • Headlines and descriptions. Write them like social copy: a specific benefit, an offer or a question, not a generic brand line.

Start with your best Meta creative, because it has already proved it can hold attention. Resize and recut it for each format rather than reusing one aspect ratio everywhere.

Refresh creative regularly. Like Meta, Demand Gen audiences see the same ads repeatedly, and performance fades as they tire of them. Watch click-through and cost per order by ad over time, and replace the weakest ads with new versions of the winners.

Product feeds add another option: linking Merchant Center lets Demand Gen show your products with prices alongside the main creative, which suits catalogues with clear, attractive product images.

Common mistakes

Recycling static product photos. Demand Gen needs thumb-stopping creative, like Meta.

Judging on Google's conversions. View-through credit flatters it.

Too small a budget. The campaign can't learn without regular conversions.

Ignoring channel reports. Check which placements bring orders and cut those that don't.

No UTMs. Without them, Shopify can't see Demand Gen orders.

Tera Ads shows Google Ads and Meta Ads spend beside Shopify orders, with profit after RTO from Shiprocket for every campaign, so a new channel like Demand Gen is judged on what it really earns. It is free for one business.

Frequently asked questions

What is a Demand Gen campaign?

A Google Ads campaign for image and video ads on YouTube, Shorts, Discover, Gmail, Maps and the Display Network.

What happened to Video Action Campaigns?

Google upgraded them to Demand Gen. New Video Action Campaigns can no longer be created.

Is Demand Gen better than Performance Max?

They do different jobs. Demand Gen reaches people before they search; Performance Max captures demand across Google, including Search and Shopping.

Can I choose where Demand Gen ads show?

Yes. Channel controls let you use all Google channels or pick specific ones, such as YouTube Shorts or Discover.

How do I measure Demand Gen results?

With Shopify orders by UTM, store-level changes when you start or stop it, and RTO on its orders, ideally with a holdout test.

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