Search ads catch people who already know what they want. Demand Gen campaigns do the job that comes before that: they put your product in front of people while they scroll YouTube Shorts, browse Discover, check Gmail or read a website, so that some of them start wanting it.
In 2026 Demand Gen matters more than ever, because Google is folding its standard Display campaigns into it. If you buy visual ads on Google at all, this is now the campaign type you will be working in.
This guide explains where Demand Gen ads run, how it differs from Performance Max and Display, what creative you need, how to budget and bid, and a step-by-step setup process with the mistakes we see most often in account audits.
Key Takeaways
- Demand Gen serves image, video and carousel ads across YouTube, Discover, Gmail, Maps and the Google Display Network from one campaign.
- Unlike Performance Max, you can choose channels, use Lookalike segments and run creative A/B experiments.
- Google is migrating Display campaigns into Demand Gen; the migration tool started rolling out in June 2026.
- With Target CPA bidding, Google recommends a daily budget of at least 10× your target CPA.
- Conversion tracking and strong, varied creative decide results far more than targeting tweaks.
What is a Demand Gen campaign?
Demand Gen is a Google Ads campaign type built for visual, “feed” style placements. Google describes it as a way to reach people on its most visual and entertaining surfaces, with a buying flow that will feel familiar to anyone who has run Meta ads: you pick an audience, upload images and videos, and choose a goal.
It is the successor to the old Discovery campaigns and, from 2026, also the new home of Google Display Network buying. That makes it Google’s main answer to paid social – a point worth keeping in mind when you plan your wider paid social strategy.
Where Demand Gen ads can appear
| Channel | Typical format | Best for |
|---|---|---|
| YouTube Shorts | Vertical 9:16 video or image | Mobile-first, younger audiences, product demos |
| YouTube in-feed, Home feed, watch next, YouTube Search | Video, image, carousel | Consideration and education |
| Discover | Image, carousel | Content-led and lifestyle products |
| Gmail | Image and carousel ads in the inbox | Offers and returning customers |
| Google Display Network | Image, responsive, product feed | Reach and remarketing across sites and apps |
| Maps | Listed by Google as part of Demand Gen inventory | Local and store-visit goals |
Channel controls let you restrict a campaign, for example to YouTube Shorts only. If you are building short-form video anyway, our YouTube Shorts strategy guide and YouTube ads guide cover the creative side.
Demand Gen vs Performance Max vs Search
Google’s own comparison is a good starting point. The short version: Search captures existing demand, Performance Max chases conversions across every channel with minimal control, and Demand Gen creates demand on visual channels with more control.
| Feature | Search | Performance Max | Demand Gen |
|---|---|---|---|
| Main job | Capture people searching now | Maximise conversions across all Google channels | Create demand on visual surfaces |
| Bidding | Clicks, conversions, value | Conversions, conversion value | Clicks, conversions, conversion value |
| Audience control | Keywords plus audience layers | Audience signals only (no hard targeting) | Audience targeting including Lookalike segments |
| Channel choice | Search (and partners) | All channels, no per-channel choice | Choose channels per campaign |
| Creative | Text ads and assets | Text, image, video | Image, video, carousel, product feeds |
| Testing | Experiments | Asset group insights | Creative A/B experiments, per-asset reporting |
For a deeper look at the all-channel option, see our guide to Performance Max campaigns. Many accounts run both: Performance Max or Search for bottom-funnel conversions, Demand Gen for reaching new people higher up the marketing funnel.
Audiences: Lookalikes and beyond
Demand Gen supports the familiar Google audience segments plus Lookalike segments, which Google says help you reach new audiences outside your existing customer base. Lookalikes are built from seed lists such as past purchasers, website visitors or people who watched your YouTube videos.
- Lookalike segments – new people who resemble your customer list or site visitors.
- Your data (remarketing and Customer Match) – re-engage visitors and customers; see remarketing campaigns.
- Custom segments – people defined by search terms, interests or URLs they browse.
- In-market and affinity segments – Google’s pre-built interest and purchase-intent groups.
- Optimised targeting – lets Google expand beyond your chosen segments when it predicts conversions.
Our guide to Google Ads audiences explains each segment type in detail. Note that sensitive categories (such as health or finance in some regions) face restricted inventory and may only use predefined Google audiences.
Creative requirements
Creative is the main lever in Demand Gen. Google’s advice is simple: use your highest-quality images and videos and include more assets, because the system needs options to match each placement.
| Asset | Ratio | Recommended size | Minimum size |
|---|---|---|---|
| Landscape image | 1.91:1 | 1200×628 | 600×314 |
| Square image | 1:1 | 1200×1200 | 300×300 |
| Portrait image | 4:5 | 960×1200 | 480×600 |
| Vertical image (Shorts) | 9:16 | 1080×1920 | 600×1067 |
| Logo | 1:1 | 1200×1200 | 128×128 (144×144 for single image and carousel ads) |
Single image ads take up to 20 images, five headlines of up to 40 characters and five descriptions of up to 90 characters. Carousel ads use 2–10 cards that must share one aspect ratio. Image files can be up to 5 MB and logos up to 150 KB, according to Google’s Demand Gen image specifications. For writing the copy, see ad copywriting and how to make an ad.
Bidding and budget
Demand Gen offers Maximise Clicks, Maximise Conversions (optionally with a target CPA), and Maximise Conversion Value (optionally with a target ROAS). Click bidding suits new accounts with little conversion data; conversion bidding is the long-term goal.
“For campaigns using target CPA bidding, Google Ads recommends setting a budget that's at least 10 times your target CPA.”
— Google Ads Help, About Demand Gen campaigns
So if your target cost per lead is £30, Google wants at least £300 a day. If that is out of reach, start with a conversion action that happens more often (Google mentions lightweight events such as add-to-basket or site visits), or bid for clicks while you build data. Our bidding strategies guide and cost per acquisition guide explain the trade-offs.
How to set up a Demand Gen campaign (step by step)
- Fix measurement first. Install the Google tag and set up conversion tracking; consider GA4 key events for micro-conversions.
- Choose a goal. Pick conversions, conversion value or clicks depending on how much conversion data you have.
- Set budget and bidding. Apply the 10× target CPA rule of thumb or start with Maximise Clicks.
- Choose channels. Start with all channels unless you have a clear reason (for example a Shorts-only test).
- Build audiences per ad group. One ad group for a Lookalike of customers, one for custom segments, one for remarketing – so you can compare.
- Upload varied creative. Several landscape, square, portrait and vertical images plus at least one video; add a product feed if you sell online.
- Write headlines for scrollers. Lead with the benefit, not the brand; feed users are not searching for you.
- Launch and wait. Avoid big edits in the first couple of weeks while the system learns.
- Run a creative A/B experiment. Test one variable – video vs image, or two different hooks.
- Judge on the right metrics. Look at conversions and view-through effects, not just last-click; see marketing attribution.
Migrating Display campaigns to Demand Gen
Google’s help centre says a phased rollout of a migration tool began in June 2026. Migrated campaigns keep up to 42 days of performance history, are renamed with “#2”, and the original campaign is set to Removed (still available for reporting). Migration cannot be reversed, and some Display-only settings – manual CPC, viewable impression bidding, bid adjustments and portfolio strategies – are not supported. Our display advertising guide covers what this means for banner-style campaigns.
Common mistakes
- Treating it like Search. People in a feed are not looking for you. Ads that only say your brand name rarely stop the scroll.
- Too few assets. One image and one headline gives the system nothing to optimise. Supply every aspect ratio.
- Underfunding conversion bidding. A £20/day budget with a £50 target CPA cannot learn.
- Judging on last-click only. Demand Gen often assists conversions that close via Search or direct traffic.
- Mixing audiences in one ad group. You lose the ability to see which audience works.
- No exclusions. Exclude existing customers from prospecting ad groups if the goal is new customers.
Related Guides
- Display Advertising: A Beginner’s Guide
- Banner Ad Sizes: The Formats That Perform
- Programmatic Advertising Explained
Frequently Asked Questions
Where do Demand Gen ads appear?
On YouTube (including Shorts, in-feed, Home feed, watch next and YouTube Search), Discover, Gmail, Maps and the Google Display Network. You can choose which of these channels each campaign uses.
Is Demand Gen replacing Display campaigns?
Yes. Google is moving Display campaigns into Demand Gen. A migration tool began rolling out in June 2026, and Google says creating new Display campaigns will later only be possible inside Demand Gen.
What budget does Demand Gen need?
Google recommends a daily budget of at least 10 times your target CPA when you use Target CPA bidding. Smaller budgets can work with click-based bidding, but learning will be slower.
Demand Gen or Performance Max?
Use Performance Max when you want one campaign across every Google channel with conversion goals. Use Demand Gen when you want visual placements, channel control, Lookalike segments and creative A/B tests.
Can I run image-only or video-only Demand Gen campaigns?
Yes. Google allows image-only or video-only setups, but notes that combining image and video assets usually performs better.
Conclusion
Demand Gen is now Google’s main visual advertising campaign, covering YouTube, Discover, Gmail, Maps and the Display Network. Give it clean conversion data, plenty of strong creative and enough budget to learn, and it can become a reliable source of new customers alongside Search. If you would like experts to plan, build and manage your Demand Gen and Search campaigns, see our PPC management services or request a free quote.
