Previously, Discovery Ads mainly allowed advertisers to show visual ads in Google Discover and Gmail. Demand Gen brings these placements together with advertising on YouTube and in the Shorts format, significantly expanding reach and creative possibilities.

The core idea behind Demand Gen is not to respond to an existing search intent, but to create demand. Ads are shown while users are consuming content—watching videos, scrolling through short-form content, or browsing recommendations—at a moment when they are not actively searching for a product yet, but are open to discovering new brands or offers. This is why demand gen advertising works especially well for brand awareness, new product launches, and scaling reach.

Google’s strong focus on Demand Gen in 2025–2026 is intentional. The platform is steadily moving toward AI-driven campaigns and a video-first strategy, where algorithms handle audience selection and delivery optimization, while creatives and messaging become the primary success factors. As a result, Demand Gen is not just an updated version of Discovery Ads—it has become one of the key formats for businesses that want to generate demand rather than simply capture it through search.

What Are Demand Gen Campaigns

Demand Gen Campaigns are designed to create interest and generate demand at the early stages of the funnel. Unlike search advertising, which responds to specific user queries, demand gen advertising leverages behavioral signals, interests, and intent data, delivering ads at the moment users are consuming content rather than actively searching.

In practice, Google uses machine learning algorithms to identify relevant audiences and scale reach across its visual platforms. Advertisers focus on developing strong creatives and messaging, while the system automatically optimizes ad delivery across different placements.

As a result, Demand Gen Campaigns not only replace Discovery Ads but also enable more effective engagement with upper- and mid-funnel audiences as part of a unified Google Ads strategy.

How Demand Gen Differs from Discovery, Performance Max, and Search

Although Demand Gen, Discovery, Performance Max, and Search all operate within the Google Ads ecosystem, they address different objectives at different stages of the funnel. For this reason, these formats should not be compared in terms of being “better or worse.” Instead, it is more accurate to look at when and why each format should be used.

Demand Gen vs Discovery Ads

In short, Demand Gen is the evolution of Discovery Ads. The new format covers a wider range of placements—including YouTube and Shorts—offers deeper AI-driven optimization, and provides more advanced analytics and testing capabilities.

As a result, Discovery Ads are being gradually phased out, while Demand Gen is becoming the primary format for visual advertising at the top of the funnel.

Demand Gen vs Performance Max

While both formats heavily rely on automation and AI, their goals are fundamentally different. Performance Max is designed to drive conversions and deliver results in the short term, whereas Demand Gen focuses on building interest and generating demand, which can later be converted through Search or Performance Max campaigns.

In practice, these formats perform best when used together rather than treated as competitors.

Where Demand Gen Ads Appear in 2026

Demand Gen Campaigns run across the key visual surfaces of the Google ecosystem. The format is designed to deliver ads in environments where users consume content rather than actively search for information. That is why, in 2026, Demand Gen is strongly focused on video, mobile-first experiences, and scalable reach.

YouTube: Home, Search, In-Stream, and Shorts

YouTube is the primary placement for Demand Gen in 2026. Ads can appear:

• on the YouTube Home feed;
• within YouTube search results;
• in in-stream formats during video playback;
• across YouTube Shorts.

Shorts deserve special attention as a short-form vertical format that Google is actively scaling. In 2026, YouTube Shorts are becoming one of the main reach drivers for demand gen advertising, as they align perfectly with mobile-first user behavior and allow brands to deliver their message quickly and effectively.

Google Discover

Demand Gen on Discover is the logical continuation and replacement of Discovery Ads. Ads appear within the Google Discover feed, where content is personalized based on users’ interests and behavior.

This placement is ideal for brand discovery, new product promotion, and reaching cold audiences who do not yet have a defined search intent but are potentially interested in the topic.

Gmail

Demand Gen ads also appear in Gmail, within the email tabs where users regularly engage with content. In 2026, Gmail remains a supporting but reliable channel for visual advertising, especially in B2B and service-based industries.

Connected TV (CTV)

Connected TV (CTV) plays a growing role in the development of Demand Gen. It enables video ads to be shown on smart TVs through YouTube and partner platforms. In 2026, CTV is becoming an increasingly important channel for brands looking to combine the scale of TV with the precision of digital targeting.

CTV placements work particularly well alongside other Demand Gen surfaces, allowing advertisers to build holistic, cross-device reach.

Ad Formats in Demand Gen Campaigns

One of the key advantages of Demand Gen Campaigns is the wide range of visual ad formats, which allows advertisers to adapt their messaging to different funnel stages and content consumption scenarios. In 2026, Google is placing a strong emphasis on attention-grabbing, mobile-first formats.

Images (Image Ads)

Image ads are the core format of demand gen advertising. They appear across Google Discover, Gmail, and YouTube and are well-suited for:

• quick brand introduction;
• delivering a clear key message or offer;
• scaling reach with minimal production costs.

This format works particularly well as a starting point for testing Demand Gen Campaigns.

Video (Demand Gen Video Ads)

Demand Gen video ads are the most effective format within Demand Gen Campaigns. Video ads are served on YouTube across multiple placements, including in-stream formats, the YouTube Home feed, and Shorts.

Video allows brands to:

• tell their brand story;
• build an emotional connection with the audience;
• fully leverage Google’s AI-driven optimization.

In 2026, video—especially short-form vertical content—has become the primary performance driver for Demand Gen campaigns.

Carousels

Carousel ads combine multiple images or cards within a single format. They are ideal for:

• showcasing multiple products or benefits;
• presenting a product line or collection;
• delivering step-by-step storytelling.

Carousels are commonly used by eCommerce brands where highlighting product variety and assortment is important.

Shopping Ads

Shopping ads in Demand Gen are based on product catalogs and dynamic product insertion. This format allows advertisers to:

• engage users at the interest-creation stage;
• combine visual advertising with product feeds;
• prepare audiences for future conversions through Search or Performance Max.

Audio and Connected TV (CTV)

Audio and Connected TV formats extend Demand Gen capabilities in 2026. Audio formats allow advertisers to reach users while they consume content without actively using a screen, while CTV enables video ads to appear on smart TVs through YouTube.

These formats are well suited for brands that:

• target broad audiences;
• focus on building brand awareness;
• use an omnichannel approach.

Analytics and Performance Measurement in Demand Gen

Since Demand Gen Campaigns are designed for the upper and mid-funnel, their performance should not be evaluated based solely on direct conversions. Instead, Google emphasizes incrementality-based metrics, which reveal the true impact of advertising on user behavior and on other marketing channels.

Unique Reach

Unique Reach measures the number of unique users who have seen Demand Gen ads. This metric is especially important for:

• evaluating the overall scale of reach;
• controlling ad frequency;
• analyzing the effectiveness of different formats and placements.

For brand and awareness campaigns, Unique Reach is often a key success metric.

Conversion Lift

Conversion Lift allows advertisers to measure the incremental impact of Demand Gen on conversions. The tool compares the behavior of users who were exposed to ads with a control group that did not see them.

This helps answer a critical question:

Did the campaign generate additional conversions, or did it simply capture conversions that would have happened through other channels anyway?

Brand Lift

Brand Lift in Google Ads is used to measure the impact of advertising on brand perception. With Brand Lift, advertisers can evaluate:

• increases in brand awareness;
• brand interest;
• purchase intent;
• changes in brand perception.

This metric is especially relevant for Demand Gen, as the format reaches users before active demand is formed.

Search Lift

Search Lift measures how Demand Gen impacts search behavior, including growth in branded and category searches. In other words, this metric shows whether users begin searching for a brand or product in Google Search after being exposed to ads.

Search Lift is one of the strongest indicators that a campaign is actively generating demand and supporting search strategy.

Attribution: Post-View and Cross-Channel

Post-view attribution is critical for Demand Gen, as users rarely convert immediately after their first ad exposure. Google Ads makes it possible to analyze:

• delayed conversions;
• the impact of Demand Gen on other campaigns;
• cross-channel effects in combination with Search and Performance Max.

This approach provides a more realistic view of the true value of demand gen advertising across the entire funnel.

A/B Testing and Demand Gen Campaign Optimization

Effective demand gen optimization is not driven by frequent setting changes, but by systematic creative testing and proper alignment with Google Ads algorithms. Demand Gen is designed so that the advertiser’s primary focus is on content quality, rather than manual control over ad delivery.

Experiments in Demand Gen Campaigns

For A/B testing, Demand Gen offers the Experiments tool, which allows advertisers to compare different ad variations within a single campaign. When an experiment is launched, Google automatically creates test and control groups to ensure accurate result comparison.

At this stage, Google recommends:

• testing creatives, not campaign structure;
• avoiding changes to budgets and targeting during the experiment;
• evaluating results based on incremental metrics, not just CTR.

This approach ensures more reliable and actionable insights from A/B tests in Google Ads.

Creative Testing as the Key to Performance

In Demand Gen, creative is the primary performance driver. Advertisers should test:

• different formats (video vs image);
• video length and structure;
• messaging, offers, and calls to action;
• vertical and horizontal creative variations for YouTube and Shorts.

In practice, 3–5 creative variations per campaign provide algorithms with enough signals to optimize ad delivery effectively.

The Role of AI in Demand Gen Optimization

Demand Gen Campaigns heavily rely on Google’s AI models to:

• identify relevant audiences;
• allocate budget across different placements;
• optimize frequency and reach.

These algorithms perform best when campaigns receive stable and consistent data. Frequent manual adjustments disrupt the learning phase and can negatively impact overall performance.

Why You Should Avoid Constant Budget Changes

One of the most common mistakes when working with Demand Gen is frequent budget or setting adjustments. Sudden changes can:

• disrupt the algorithm’s learning phase;
• make A/B test results harder to interpret;
• lead to unstable performance.

The optimal approach is to set a realistic budget from the start, give the campaign enough time to learn, and optimize performance through creatives and experiments, rather than through constant manual changes.

How to Launch a Demand Gen Campaign: What Matters in 2026

Launching a Demand Gen Campaign in 2026 is not about manually fine-tuning every setting, but about setting the right priorities. Google is gradually shifting focus away from targeting and bids toward creatives, audience signals, and full-funnel strategy. These factors are what ultimately determine campaign success.

Creative Matters More Than Targeting

In Demand Gen, creative is the primary lever of influence. Google Ads algorithms can identify relevant audiences, but they cannot compensate for weak messaging or poorly adapted formats.

In 2026, advertisers should:

• invest in video, especially short-form vertical formats;
• adapt creatives for mobile-first experiences;
• prepare multiple variations of the same message for testing.

Creative quality directly determines how algorithms interpret engagement signals and scale ad delivery.

Audience Signals Matter More Than Interests

When launching Demand Gen, it’s better to rely on audience signals rather than rigid interest targeting. These signals can include:

• website visitor lists;
• customer data;
• users who have engaged with videos on YouTube;
• remarketing and lookalike audiences.

Audience signals do not limit reach—instead, they guide the algorithms on where to start, directly influencing traffic quality and campaign performance.

Demand Gen as Part of a Full-Funnel Strategy

Demand Gen performs best not as a standalone format, but when combined with other Google Ads campaign types. In 2026, the most effective setup is:

• Demand Gen — demand creation;
• Search Campaigns — capturing existing interest;
• Performance Max (PMax) — scaling conversions.

This approach connects reach, interest, and sales into a single funnel, enabling more accurate evaluation of each channel’s contribution.

If you are planning to test Demand Gen Campaigns or want to understand how to integrate this format into your current Google Ads strategy, the newage. team can help define the optimal approach—from creative strategy to analytics and performance scaling.

Contact newage. to discuss whether Demand Gen is the right fit for your business and how to unlock its maximum value in 2026.

FAQ: Demand Gen Campaigns

Have Demand Gen Campaigns fully replaced Discovery Ads?

Yes, Demand Gen Campaigns are the official replacement for Discovery Ads. Google has gradually phased out the ability to create Discovery campaigns, moving their logic and placements into Demand Gen and expanding the format with additional placements on YouTube and Shorts.

Is Demand Gen suitable for lead generation and B2B?

Yes, Demand Gen can work for lead generation and B2B, but not as a direct performance-driven tool. The format is most effective for warming up audiences, building interest, and supporting Search campaigns that capture already-formed demand.

What is the minimum budget required for Demand Gen Campaigns?

The recommended budget depends on the industry and market, but in most cases, Demand Gen requires higher budgets than Search, so the algorithms can properly learn and scale reach. For testing, it’s best to allocate a budget that allows the campaign to run consistently for several weeks without abrupt changes.

Can Demand Gen be run without video?

Technically, yes—but performance is significantly lower without video. In 2025–2026, Demand Gen follows a video-first approach, especially across YouTube and Shorts. Even simple short-form videos often outperform static image ads.

Demand Gen or Performance Max — which should you choose?

These formats solve different business objectives. Demand Gen focuses on creating demand, while Performance Max is designed to drive conversions. In most cases, the best results come not from choosing one over the other, but from using a Demand Gen → Search → Performance Max sequence within a full-funnel strategy.