Demand Gen – AI-based Google Ads campaign.

Demand Gen AI-based Google Ads campaign, which is the latest type of campaign we can use in Google Ads. Google describes it as a „next-generation Discovery campaign.” The campaign offers new features, resources, statistics, and an improved ad creation process. In what situations do we use this type of action, and how do we configure the campaign to bring optimal results?

Demand Gen campaigns rely on video and image resources in the most visually engaging corners of the Google ecosystem. These campaigns are intended to replace Discovery Ads and introduce an innovative solution within YouTube Ads. This innovation leverages the huge user base and current viewership of YouTube Shorts, increasing the visibility and impact of the ads on the viewer.

Demand Generation is emerging as a driving force for brands entering the social platform shopping market. It offers a broad resource of contextually relevant and visually engaging creatives. This strategic approach has a single goal: to capture attention and initiate action at the most convenient time for the user.

Demand Gen’s approach is strategic.

Demand Gen – Google Ads campaign based on AI – most important features

Increased reach—demand generation campaigns cover a variety of Google and YouTube domains, such as the YouTube homepage, search, watch on, discovery tab, Gmail, YouTube Shorts, and YouTube In-Stream. This wide range of places where ads are displayed puts the user in contact with them at multiple touch points, allowing him to make a conversion at any time that suits him.

Matched ads – unlike traditional Discovery ads, Demand Gen campaigns integrate image and video ads into a single campaign. Advertisers can also preview their creatives on different surfaces and conduct creative A/B experiments to optimize their display and impact on the viewer.

The ads can also be previewed on different surfaces and run creative A/B experiments to optimize their display and impact on the viewer.

Demand Gen – Google Ads campaign based on AI – ad formats

Various ad formats – advertisers can experiment with a wide range of formats such as short videos, carousels, portraits and square images, customizing their approach to maximize engagement. Each product or service has its own unique characteristics, making it possible for ad display strategies to vary. With the ability to customize where we display the creatives, we can reach the viewer at the optimal time for us.

Advanced reporting and measurement – new features include brand growth rates and number of YouTube searches for image and video ads.

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Flexible rate-setting options – Demand Gen campaigns are based on various dynamic rate-setting strategies. These strategies, powered by Google’s artificial intelligence, are tailored to steer campaigns toward achieving unique goals set by the advertiser:

• Maximize clicks. This strategy prioritizes high-value user engagement within budget. Whether you use image or video ads, this strategy increases traffic to your site without having to track conversions. 
• Determine rates based on conversions. Efficiency is the focus of this strategy. Rates are strategically aligned with conversions that provide the optimal profitability or total number of conversions for your business whether it’s targeting your CPA or maximizing the number of conversions.
• Determine rates based on value. This strategy works well for companies seeking higher conversion value. Conversion-based rate setting is oriented toward achieving target ROAS. This is ideal for companies seeking to maximize ROAS.

Demand Gen – lookalike

Demand Gen – an AI-based Google Ads campaign, can help you discover new potential customers who may not know your brand, thanks to the new features of Lookalike segments.

Lookalike segments are groups of people sharing common characteristics with others on an existing „seed” list. You can set up your own audience list (seed) and then use it in a campaign as a lookalike base. Seed can be, for example, a list of customers or lists of people who have interacted with your website and app or YouTube channel. The Demand Gen campaign will then use this information to find other potential customers with similar characteristics.

Demand Gen – content and components

To set up a Demand Generation campaign, you will need relevant content called components. These include headlines, ad text, images, and logos. To increase effectiveness, choose components with the highest quality image and video components, such as brand logos and inspiring, well-exposed images that contain minimal text. You can also use the most effective components from past campaigns on other platforms, such as email and social media.

To create visually appealing content for your audience, try to tell your brand’s story through it. Consistently emphasize the call to action (CTA) in visuals, narrative and graphics. Prioritize resources that have shown good effectiveness with different types of advertising assets. Take a creative approach that prioritizes mobile devices to ensure compatibility with different devices. Use different aspect ratios for both images and videos to increase versatility. Keep the ad text concise so that the text overlay takes up less than 20% of the image. The best solution will be to use several graphic sets and then conduct A/B experiments. This way you will optimize the creatives for their effectiveness and appeal to your audience.

Demand Gen – Google Ads campaign based on AI – what budget to set?

The recommended daily budget should be between £500 and £2,500 per ad group to achieve meaningful results on which the algorithm can work effectively. Ad groups with more than 50 conversions usually have better performance. Set your daily budgets to at least 15 times your target CPA or 15 times your expected average CPA, whichever is higher. You can use the budget simulator in the user interface to learn simulated campaigns with maximum conversions. If you want to learn how to optimize your campaign budgets, use our tutorial titled. “How to avoid wasting budget in PPC campaigns?“

How to configure a Demand Gen campaign?

Step 1 – Create a new campaign

In the navigation menu on the left, you can duplicate, delete, and create new campaigns or ad groups.

In your Google Ads account, click Create and select Campaign from the list. Then, add the campaign’s name.

If you use product data files to display products in your ads, click the toggle switch to enable the „Run campaign with product data file” option.

Step 2 – Select the campaign objective

When creating a demand generation campaign, you can choose one of these goals: Sales, Site traffic, or Consideration to purchase a brand’s product, or you can create a campaign without using the goal prompts.

Demand Gen – Google Ads campaign based on AI – targeting at the campaign level

Step 3 – Configure campaign-level targeting

Device targeting – This type of targeting allows you to display ads to users based on their device. In the „Devices” section, you can choose to display ads on all devices or set up targeting for specific devices. Displaying ads on all devices will help you increase the reach of your campaign. If you want to focus on specific devices, you can target ads on computers, cell phones, tablets or TVs. Remember that Demand Gen works best in mobile formats – take this information into account when setting up your campaign!

Language and location targeting—To ensure your ads reach the right customers, you can add the languages they speak and include the locations you want to target.

Step 4 – configure rate setting and budget

Budget affects how often your ads are displayed and in how prominent positions. Rate setting settings determine how your budget is spent. Choose a rate-setting strategy. A rate-setting strategy is how you optimize rates to meet your campaign goals.

Step 5 – create ads

You create ads at the ad group level. To create a new ad, in the drop-down menu of the ad group in which you want to create an ad, click New ad.

Create an ad.

You will have these options to choose from:

• Video ads: single video ad.
• Graphic ads: single image ad;
• Carousel ads: an ad with more than one image displayed as a carousel;

Insert ad name. Select or add multimedia components. Add up to 5 logos. Add text components.

Demand Gen – Google Ads campaign based on AI – reporting

And you’re done! Remember to take care of the effectiveness of the ads during their configuration. At the configuration stage of each ad, Google Ads displays an ad quality index, which consists of several elements, such as headlines, ad texts, image formats, etc. The higher the quality index is, the cheaper the quality traffic will be.

The Digital Agency can help you set up and run your campaign. We know how to schedule activities to meet your goals, and we respond quickly to changes that affect your site’s position. We can help you grow your business and recommend the right marketing solutions for your company.

After you set up your campaign, remember to check the results regularly. Read destination reports to see where your components are most effective, and look at the „Where Ads Display” page to exclude any channels at the campaign and ad group level. The „Where Ads Display” reports only apply to YouTube destinations. This will ensure that your campaign is effective.