How to Set Up Demand Gen Campaigns for YouTube & Google Ads

For advertisers looking to simplify cross-platform advertising on YouTube and Google networks, Demand Gen campaigns are becoming the go-to solution. It’s a full transition from YouTube TrueView for Action to Video Action Campaigns (VAC) — and now, Demand Gen campaigns.

By combining the reach of Google’s ecosystem with the creative impact of YouTube video ads and image ads, Demand Gen campaigns provide a powerful way to drive action and conversions by targeting users in key moments of intent.

What Are Demand Gen Campaigns?

Powered by Google AI, Demand Gen campaigns allow advertisers to engage users across multiple touchpoints within YouTube, YouTube Shorts, Discover, and Gmail.

With the introduction of multi-format ads that can be created within a single Demand Gen campaign, advertisers can now reach and engage the 63% of customers who use Google feeds to discover or research new brands and products.

Benefits of using Google’s Demand Gen campaigns

Apart from reaching a vast audience network that you can previously reach using separate YouTube and Google ad campaigns, here are other key benefits that make Demand Gen an attractive choice for advertisers:

1. Customizable Ad Experiences: 

• Demand Gen supports multiple ad formats, including single image, video, and carousel image ads, allowing you to engage audiences with diverse creative options.
• Google Demand Gen campaigns use audience-first creatives so that the most riveting ad creatives that capture audiences are served the most to customers likely to click and convert.

2. Improved Performance Metrics:

• The early adoption of Google Demand Gen ads has brought impressive results, which has led Google to be confident in making this a more prominent campaign type:
  • 7.64% CTR with 43% better CPC efficiency on ads served in YouTube placements (Strike Social Campaign Lab data, U.S. Demand Gen campaign for entertainment brand)
  • 58% higher ROAS than Video Action Campaigns (Nielsen MMM meta-analysis on Demand Gen vs. 2024 Google AI-powered YouTube ads)
  • 3x higher CTR and 61% lower CPA (Demand Gen beta test by Search Engine Land)

3. Enhanced AI Capabilities:

• Demand Gen makes use of Google’s AI for its bidding strategy, helping advertisers secure more clicks and conversions with automated optimizations.
• AI-powered image editing allows advertisers to enhance creatives by automatically selecting and refining images from the Google Merchant Center for better ad performance.

Demand Gen Campaign Specs and Requirements

Ready to set up your Demand Gen campaigns? Here’s a detailed guide on the available ad formats and their specifications to help you create high-performing ads with this campaign type.

Available Ad Formats

Image Ads

Image ads are ideal for quick, visually appealing ads that contain all your information in a single image. If you’re looking to capture audiences who want your product or service information in one look, image ads are the way to go.

Ad specs for Demand Gen image ads

• Resolution and Aspect Ratio:
  • 1.91:1 (Landscape) – Recommended: 1200 × 628
  • 1:1 (Square) – Recommended: 1200 × 1200
  • 4:5 (Portrait) – Recommended: 960 × 1200
  • 9:16 (Vertical) – Recommended: 1080 × 1920 (Only available on YouTube Shorts)
• File Size: Max 5MB
• Headline: Up to 5 headlines (Max 40 characters each)
• Description: Up to 5 descriptions (Max 90 characters each)
• Business Name: Max 25 characters
• URL: Required; supports different URLs for mobile placements
• Logo: Up to 5 (1:1 ratio; Recommended: 1200 × 1200)
  • Logos are displayed as circular images; 5.36% of each corner may be cropped
• CTA: Automated or manual selection (choose from the following):
  • (Automated) Apply now Book now Contact us Download Learn more Visit site Shop now Sign up Get quote Subscribe See more

** Note: If uploading a GIF file for an image ad, the ad displayed will be a static version only.

Carousel Ads

Showcase multiple images in a single ad, giving your audience a more engaging experience with your Demand Gen placements. This format encourages viewers to explore and interact with your offers by swiping through the carousel.

Ad specs for Demand Gen carousel ads

• Carousel cards: Up to 10
• Resolution and Aspect Ratio:
  • 1.91:1 (Landscape) – Recommended: 1200 × 628
  • 1:1 (Square) – Recommended: 1200 × 1200 (Square images not supported in Discover placements)
  • 4:5 (Portrait) – Recommended: 960 × 1200 (Optional)
  • All carousel cards must be the same dimension. For example, if you’re choosing square resolutions for one carousel image card, then all must be square.
  • It’s recommended to have both landscape and square carousel images for better compatibility with different Demand Gen placements.
• File Size: Max 5MB
• Headline: Up to 5 headlines (Max 40 characters each)
• Description: Up to 5 descriptions (Max 90 characters each)
• Business Name: Max 25 characters
• URL: Required; different URLs can be set for each carousel card
• Logo: Up to 5 (1:1 ratio; Recommended: 1200 × 1200)
  • Logos are displayed as circular images; 5.36% of each corner may be cropped
• CTA: Automated or manual selection; can set different CTAs for each carousel card:
  • (Automated) Apply now Book now Contact us Download Learn more Visit site Shop now Sign up Get quote Subscribe See more

Video Ads

An effective way to engage users, especially on YouTube and YouTube Shorts. Reach over 250 million users in the U.S. with video ads placed across various Demand Gen placements, making it a format you can’t afford to overlook.

Ad specs for Video ads on Demand Gen campaigns

• Video Uploads: Up to 5 videos
• Length:
  • Minimum: 5 seconds
  • Maximum for YouTube Shorts ad placements: 60 seconds
  • No prescribed max length for landscape and square ads;
    Recommended: Up to 3 minutes or based on industry best practices.
• Resolution and Aspect Ratio:
  • 16:9 (Landscape) – Recommended: 1920 × 1080 (HD)
  • 1:1 (Square) – Recommended: 1080 × 1080 (HD)
  • 9:16 (Vertical) – Recommended: 1080 × 1920 (HD)
• File Size: Max 256GB
• Headline: Up to 5 (Max 40 characters each)
• Long Headline: Up to 5 (Max 90 characters each)
• Description: Up to 5 (Max 90 characters each)
• Business Name: Max 25 characters
• Logo: Up to 5 (1:1 ratio; Recommended: 1200 × 1200)
  • Logos are displayed as circular images; 5.36% of each corner may be cropped
• Sitelinks: Up to 4 (shown in skippable in-stream ads on mobile placements only)
• CTA Options:
  • (Automated) Apply now Book now Buy now Contact us Donate now Download Get quote Learn more Order now Play now See more Shop now Sign up Start now Subscribe Visit site Watch now

** Note: Your video must be uploaded to YouTube as either public or unlisted. You can also create a generative video ad directly in Campaign Manager.

** Demand Gen video ads on Gmail will only be served on mobile.

Targeting Capabilities and Limitations

Google Demand Gen campaigns offer advanced audience targeting options designed to maximize reach and relevance. Consider the following capabilities you can maximize when planning your campaigns.

1. Lookalike segment

Demand Gen campaigns allow you to create lookalike audiences based on first-party data, such as customer lists or newsletter sign-ups. This helps expand reach by targeting users who share similar traits with your existing customers.

For example, using lookalike audiences can help you target similar profiles of those who made past purchases from your website, increasing the likelihood of conversions.

Lookalike audiences are particularly effective for mid-funnel strategies, which Demand Gen focuses on. They help you find new, high-intent users by relying on your existing customer data. You can choose between Narrow (2%), Balanced (5%), or Broad (10%) to target people with similar profiles.

2. Custom segments

Custom segments help you target potential customers based on their search behavior, interests, and online activity. To improve targeting accuracy, you can create segments using specific search terms, competitor websites, or app activity.

For instance, if you want a headstart on your Mother’s Day promotions for your flower arrangement business, you can use a custom segment for search terms such as “ideas for Mother’s Day gifts,” “top 10 Mother’s Day gift ideas,” etc. to get audiences intently looking for Mother’s Day gifts and likely to make a purchase.

3. Optimized targeting

Google’s AI-driven optimized targeting expands reach beyond your specified audience signals to users likely to convert. While the priority remains on your defined audience, optimized targeting helps increase clicks and conversions by identifying new high-performing prospects.

If optimized targeting improves performance, you may notice a shift in your initial targeting selections. However, this is expected and indicates that the campaign is effectively driving the desired results.

Understanding how audience targeting works in Demand Gen campaigns allows you to align your strategy with your campaign goals better.

Step-by-Step Guide to Setting Up Demand Gen Campaigns in Google Ads

Now that you have the basics of Demand Gen campaign specs and audience targeting, it’s time to set up the campaign.

1. Choose a campaign objective that aligns with your business goals. Demand Gen supports the following objectives:

• Sales
• Leads
• Website traffic
• Awareness and consideration
• Create a campaign without guidance

2. Choose Demand Gen as the campaign type, then click Continue.

3. Set Up Campaign-Level Details:

Define the core settings for your campaign such as the campaign name, target cost-per-action (CPA), campaign budget, and campaign dates. You can also set up your location and language targeting if they will be the same for all your ad groups within this campaign.

In addition, you can select whether to distribute your ads to Google video partners (this feature is currently still in Beta testing).

4. Set Up Ad Group-Level Targeting:

Refine your targeting by setting up audience specifications at the ad group level within your Google Demand Gen campaign. Here, you can define audience segments, lookalikes, and custom audiences to ensure your ads reach the right people.

6. In the Review campaign section, review your campaign settings and targeting, and confirm that ad creatives are correctly configured. Once you’re ready, click Publish campaign.

The campaign will typically have a 2-week to 6-week learning period during which Google can collect data and optimize bids effectively. From here, monitoring your Demand Gen campaign is essential and requires a constant eye to ensure it is running on pace.

Must-Knows for Your Demand Gen Campaigns

Launching a Demand Gen campaign is only the beginning — the real work starts after going live. Complexities may arise, so understanding what to expect and how to maintain control over your campaigns is essential.

Here’s what you need to know to run effective Demand Gen ads on YouTube and Google:

Brand Safety and Suitability

Demand Gen ads serve across YouTube, Gmail, and Discover feeds, which can expose your brand to unsuitable content. Protect your brand with these strategies:

• Use Exclusions: Exclude low-quality websites, apps, and sensitive content categories (e.g., violence, mature themes). Adjust these settings under Tools > Content Suitability in Google Ad Manager.
• Add Negative Keywords: Unlike keyword targeting, adding negative keywords prevents your ads from appearing in specific searches. For example, if you want to avoid your brand showing up alongside political content, especially during election season, using negative keywords ensures your brand stays clear of any political association.

Goal Clarity

Is Demand Gen suitable for all stages of your paid social ad campaign — from awareness to traffic and conversions? While Demand Gen supports multiple campaign objectives, you must clearly define your target outcome to ensure it aligns with your campaign goals.

• Mid-to-Lower Funnel Focus: Demand Gen campaigns are designed to drive clicks and actions, such as website visits, leads, and sales.
  
  While Demand Generation can be chosen from the awareness objective, a great choice for the top of the funnel (ToFu) is Video Reach Campaigns. By utilizing different YouTube ad formats such as in-stream (bumper, skippable), in-feed, and Shorts ads, you can better increase brand awareness through video engagement within related content.

What Sets Demand Gen Apart

Demand Gen campaigns combine creative flexibility and automated targeting in ways other Google Ads formats cannot:

• Flexibility over Audience Targeting: Unlike PMax, which automates most targeting, Demand Gen gives you more granular control over audience segmentation.
• Hybrid Ad Formats: With support for images, videos, and carousel ad formats, you have more flexibility in testing creative variations and adjusting placements based on performance.

Know the Best YouTube Ads Agency to Partner With

While Demand Gen automates many processes, working with a specialized YouTube Ads agency can take your performance to the next level. Here’s what to look for when choosing the right agency to manage your Demand Gen campaigns:

• YouTube Ads Expertise: Since Demand Gen is rooted in YouTube Video Action Campaigns, your agency should have deep experience in managing YouTube campaigns. A strong portfolio of YouTube case studies will give you insight into their track record and effectiveness.
• Google-Recognized: Being a Google Partner signals an agency’s expertise in running and optimizing YouTube and Google campaigns. Further, a Google Premier Partner status reflects consistent excellence and proven performance in managing high-spend campaigns.

Strike Social has proudly held Google Premier Partner status for six years — a testament to our expertise and success in running high-performing campaigns. With the trust of many top-tier clients, we continue to deliver results and maintain this prestigious recognition.

It’s More Than Just YouTube Advertising Now

The shift from Video Action Campaigns to Demand Gen signals Google’s push toward a more integrated and expansive advertising ecosystem. Demand Gen’s expansion beyond YouTube to Google’s broader network gives you more opportunities to increase ad performance across multiple channels and placements.

However, even with increased automation, you can still maintain control through strategic campaign monitoring and pacing. As your campaigns evolve, you can position your brand ahead of innovation by learning how Demand Gen fully works and how you can improve your performance.