What is Demand Gen?
Demand Gen is a type of Google Ads campaign that helps you generate demand through visually driven ads across Google’s major channels. Whereas you previously used Discovery Ads to reach potential customers with inspirational content, Demand Gen now brings together formats such as images, video, and carousels into a single platform. This campaign type leverages Google’s AI to display your messages on YouTube, YouTube Shorts, Discover, Gmail, and the Display Network. This means you reach users during their browsing and inspiration moments, before they actively start searching for a solution.
In a broader context, Demand Generation—or simply demand generation—is about creating the need itself, not just capturing existing interest. This means you work purposefully to spark curiosity and position your brand, product, or service as the solution to a problem the customer may not yet have defined. This differs from lead generation, which typically involves collecting contact information. Demand Gen therefore operates higher up in the funnel and is closely linked to branding, storytelling, and strategic content creation that establishes 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-powered 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. This is similar to a form of lookalike targeting, where data and machine learning help you scale up without compromising on quality.
Next, choose the ad format. The combination of images, videos, and product carousels allows you to test which creative approach best motivates users to take action. This is where strong digital design and a clear branding strategy make all the difference. Visually consistent elements increase brand recognition, while storytelling in the form of short videos can create an emotional connection. This is particularly beneficial during the top-of-the-funnel stages, where the goal is to build interest rather than trigger an immediate purchase.
Bidding strategies depend on your goal. You can bid based on clicks, conversions, or value, depending on whether you want to optimize for engagement, pipeline, or direct sales. For example, if you use value-based bidding, you can adjust the settings so that the algorithm prioritizes users who contribute the most to your revenue. In this way, Demand Gen acts as a bridge between branding and performance marketing.
That's Why You Should Use Demand Gen
You should use Demand Gen when you want to expand your reach to new audiences who aren’t yet familiar with your brand. This is particularly relevant when your existing Search or Performance Max campaigns are running at full capacity and you need new growth at the top of the funnel. Because this campaign type is designed to engage users as they discover new content, it provides access to those moments when inspiration turns into intent.
Google’s own data shows that the majority of users on YouTube and Discover make purchases after being exposed to new content in these specific environments. This makes Demand Gen an effective method for generating high-quality traffic and new leads, which can later be captured by your conversion-oriented campaigns. In B2B marketing, this campaign type can boost pipeline velocity because it accelerates the journey from awareness to actual need. At the same time, it’s closely linked to content production, since the relevance of your visual content determines how effectively you can retain the user.
What types and varieties are available?
Demand Gen comes in two main forms. The first is the Google Ads-based version, which you set up directly within the platform and where you work with specific ad assets. Here, the focus is on leveraging the available formats: YouTube Shorts, in-stream video, carousels, images, and product ads. The second form is the strategic level in B2B, where Demand Gen describes a holistic approach to generating demand through content and brand positioning across channels.
Example of a comparison of campaign types:
| Campaign Type | Purpose | Channels | Bidding |
|---|---|---|---|
| Search | Capture existing demand | Google Search and Partners | Clicks or conversions |
| Performance Max | Combine all Google platforms | All inventory | Conversions or Value |
| Demand Gen | Generate new demand through visual inspiration | YouTube, Gmail, Discover, Display | Clicks, conversions, or value |
How do you use Demand Gen in practice?
To make a real impact, 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 to use value-based bidding, you can prioritize customers with the highest lifetime value instead of chasing the lowest cost-per-click. Of course, this requires that you have a solid data setup and conversion tracking in place—here, Demand Gen is closely linked to SEO and content strategy, because you need to ensure that your website can handle and retain the traffic generated by your campaigns.
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 videos perform in terms of click-through rate or conversion value. Over time, you’ll learn which formats and messages best generate interest and drive movement through the sales funnel. This requires a balanced approach between data and creativity—the AI handles the optimization, but you still steer the direction through your content.
What should you keep in mind?
Demand Gen works best when you take a holistic approach. This type of campaign can quickly deliver broad reach, but its effectiveness depends on how you integrate it into your overall marketing strategy. Therefore, make sure your messages are consistent across social media channels, email flows, and remarketing initiatives. The attention you generate through visual ads should lead to a meaningful next step—such as a relevant piece of content or a clear landing page that elaborates on the value of your product or service.
It’s also important to have realistic expectations when it comes to measurement. Because Demand Gen impacts the top of the funnel, results may take longer to materialize as direct conversions. Therefore, don’t just focus on short-term clicks, but on how the campaign contributes to brand awareness and the pipeline over time. When you combine Demand Gen with a data-driven strategy for SEO, paid social, and content, you’ll achieve a more cohesive effort that both inspires and converts.
