Demand Gen

What is Demand Gen?

Demand Gen is a type of Google Ads campaign that helps you create demand through visually driven ads across Google's biggest channels. Where you previously used Discovery Ads to reach potential customers with inspiring content, Demand Gen now brings formats such as images, video and carousels together in one place. The campaign type is built on Google's AI and shows your messages on YouTube, YouTube Shorts, Discover, Gmail and the Display Network. This means you meet users in their browsing and inspiration moments, before they actively search for a solution.

In a broader context, Demand Generation – or simply demand gen – is about creating the need itself, not just capturing existing interest. In other words, you work purposefully to spark curiosity and position your brand, product or service as the answer to a problem the customer may not yet have defined. This sets it apart from lead generation, which is typically about collecting contact details. Demand Gen therefore operates higher up the funnel and is closely linked to branding, storytelling and strategic content work that creates relevance before the need arises.

How do you use Demand Gen?

When you set up a Demand Gen campaign, you start by defining your audience. Here, you use Google's AI-based segmentation to reach people who resemble your existing customers. You can upload customer lists from your CRM system, and the algorithm automatically finds similar profiles across Google platforms. It's a form of lookalike targeting, where data and machine learning help you scale up without compromising on quality.

Next, you choose the ad format. The combination of images, videos and product carousels lets you test which creative approach best motivates users to take action. This is where strong digital design and a clear branding strategy make the difference. Visually consistent elements increase recognition, while storytelling in the form of short videos can create an emotional connection. This particularly benefits the top-of-funnel stages, where the aim is to build interest rather than trigger an immediate purchase.

Bidding strategies depend on your goal. You can bid for clicks, conversions or value, depending on whether you want to optimise for engagement, pipeline or direct sales. If, for example, you use value-based bidding, you can adjust it so the algorithm prioritises the users who contribute most to your revenue. In this way, Demand Gen acts as a link between branding and performance marketing.

Why you should use Demand Gen

You should use Demand Gen when you want to extend your reach to new audiences who don't yet know your brand. It's particularly relevant when your existing Search or Performance Max campaigns are fully utilised and you need new growth at the top of the funnel. Because the campaign type is designed to engage users while they discover new content, it gives you access to the moments when inspiration turns into intention.

Google's own data shows that the majority of users on YouTube and Discover make purchases after being exposed to new content in precisely these environments. That makes Demand Gen an effective way to generate quality traffic and new prospects that can later be captured by your conversion-focused campaigns. In B2B marketing, the campaign type can boost pipeline velocity because it speeds up the journey from awareness to genuine need. At the same time, it's closely tied to content production, as the relevance of your visual content determines how effectively you can hold on to users.

What types and variants are there?

Demand Gen comes in two main forms. The first is the Google Ads-based version, which you set up directly in the platform and where you work with specific ad assets. Here, it's about making the most of the format options: YouTube Shorts, in-stream video, carousels, images and product ads. The second form is the strategic level in B2B, where Demand Gen describes an overall approach to creating demand through content and brand positioning across channels.

Example comparison of campaign types:

How do you use Demand Gen in practice?

To make an impact in practice, you should combine Demand Gen with clear KPIs. In Google Ads, you can measure results such as conversion rate, clicks, revenue, ROI and engagement. If you choose value-based bidding, you can prioritise the customers with the highest lifetime value instead of chasing the lowest cost per click. Naturally, this requires a solid data set-up and conversion tracking to be in place — this is where Demand Gen ties in closely with SEO and your content strategy, because you need to make sure the website can receive and retain the traffic the campaigns generate.

Another practical approach is to set up experiments where you test different audiences and ad assets. For example, you can compare how different types of video perform in terms of click-through rate or conversion value. Over time, you learn which formats and messages best build interest and create movement through the sales funnel. It requires a balance between data and creativity — the AI handles the optimisation, but you still set the direction through your content.

What should you be aware of?

Demand Gen works best when you take a holistic view. The campaign type can quickly deliver high reach, but its impact depends on how you integrate it into your overall marketing strategy. So make sure your messages are consistent across social channels, e-mail flows and remarketing initiatives. The attention you spark through visual ads needs a meaningful next step — for example a relevant piece of content or a clear landing page that expands on the value of your product or service.

It's also important to have realistic expectations about measurement. Because Demand Gen influences the top of the funnel, results can take longer to show up as direct conversions. So don't just measure short-term clicks, but also how the campaign contributes to brand awareness and pipeline over time. When you combine Demand Gen with a data-driven strategy for SEO, paid social and content, you get a more coherent effort that both inspires and converts.