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Google's New AI Ads - Demand Gen, Here We Come

Google's New AI Ads - Demand Gen, Here We Come

Google is launching a new AI-powered campaign type known as Demand Gen campaigns. Currently in beta for advertisers, this groundbreaking approach is set to redefine the landscape of advertising. The complete rollout of Demand Gen campaigns is anticipated to commence in October 2023.'


Transitioning from Discovery Ads to Demand Gen Campaigns

This transition signifies a shift from the existing Discovery campaigns to the advanced Demand Gen campaigns. Driven by AI capabilities, Demand Gen campaigns are strategically designed to stimulate demand within the mid-funnel segment of user journeys.

The transition from Discovery to Demand Gen campaigns will be executed through several phases, spanning from August 2023 to March 2024. This transition underscores Google's commitment to establishing an AI-centric environment within its advertising ecosystem.

Google Ads liaison, Ginny Marvin, shared this transformative development via her social media channels on August 15.

Understanding Demand Gen Campaigns

Debuted alongside Video View campaigns in June 2023, Google's Demand Gen campaigns harness AI capabilities to nurture demand within the mid-funnel user segment.

Distinguished by several unique features, Demand Gen campaigns represent a new paradigm in campaign types.

Innovative Ad Formats for Enhanced Engagement

Central to this innovation is the creation of ads with a distinct "social" essence. These ads leverage top video and image assets across Google's visual platforms, including:

  • YouTube
  • YouTube Shorts
  • Discover
  • Gmail

Advertisers can leverage various ad formats, such as short-form videos, carousels, portraits, and square images, consolidated within a single campaign.

Empowering Advertisers with Targeted Capabilities

This groundbreaking approach also empowers advertisers to integrate first-party data and explore Lookalike audiences, facilitating the discovery of new customers.

The objective of Demand Gen campaigns is to drive conversions, site traffic, and user actions, and this is achieved through multiple Smart Bidding strategies. Advertisers can opt for Conversions, Conversion Value, and Maximize Clicks bidding to optimize campaign performance.

A Seamless Transition: Discovery to Demand Gen

Advertisers keen on embracing this transformative campaign type can immediately enroll in the beta program.

Advertisers accepted into the beta program can promptly initiate the creation of Demand Gen campaigns.

Upgrading Discovery Campaigns: Phase 2 and 3

Starting in October 2023, Phase 2 of the rollout will make Demand Gen campaigns available to all advertisers, with existing Discovery campaigns becoming eligible for seamless upgrades during this period.

Phase 3, scheduled to conclude by March 2024, will witness the automatic upgrade of all remaining Discovery campaigns to Demand Gen campaigns.

Navigating the Transition: Considerations for Advertisers

Google's transition announcement has raised several pertinent questions from advertisers, encompassing reporting, audience considerations, and more.

Clarifying Reporting and Metrics

Ginny Marvin has clarified that Demand Gen campaigns won't feature placement-level reporting. Nevertheless, comprehensive reporting on essential campaign aspects, such as asset-level details, will be available.

Adapting to Variation in Inventory

Advertisers need to be attuned to the variation in inventory between Demand Gen and Discovery campaigns. Metrics may exhibit fluctuations during the transition, particularly in cases where YouTube placements are involved.

Optimizing Creative Strategies

As advertisers embrace Demand Gen campaigns, optimizing creative strategies is paramount. Ad formats are designed to be visually engaging, warranting a cohesive and relevant user experience.

Google, AI Ads, and the Future of Demand

Advertisers can now readily join the Demand Gen beta program.

Following the beta phase, Demand Gen campaigns will be accessible to all advertisers starting October 2023.

This innovative campaign type presents a promising addition to advertising portfolios, suitable for both B2B and B2C sectors.

As the transition period approaches, strategizing and refining visual content strategies will be key to effectively capturing mid-funnel users and leveraging the potential of Demand Gen campaigns.

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