Google expands Demand Gen ad tools ahead of Video Action Campaigns sunset

Google today announced upcoming updates to its Demand Gen advertising platform. These include new controls over ad placement and enhanced creative tools, while setting a timeline to retire its Video Action Campaigns.

The big picture. These changes represent Google’s push for advertisers to create more engaging visual content and better measure its performance against social media campaigns.

The details:

• New channel controls (starting in March):
  • Advertisers will be able to precisely choose ad placement across YouTube, Discover, and Gmail.
  • Specific targeting for YouTube Shorts will become available.
  • Google Display inventory will be added, reaching over 90% of global internet users.
• Creative enhancements:
  • Vertical 9:16 image ads for Shorts (coming in late February).
  • A new tool to create shorter versions of videos at scale.
  • Improved ad creation workflow with shareable previews.
• Retail-specific features:
  • Enhanced product feed integration.
  • Local inventory display capabilities.
  • Omnichannel bidding for both online and in-store optimization.

By the numbers:

• 61% of Gen Z users feel closer to YouTube creators than those on other platforms, according to Google.
• Demand Gen delivers 58% higher ROAS than Video Action Campaigns, according to Nielsen.
• One case study: Global clothing and and homeware retailer, Marks & Spencer exceeded forecasted ROAS by 186% with 66% lower CPA.
• YouTube, which is particularly popular with Gen Z, delivers 2.3x higher long-term return on ad spend compared to paid social media, according to Google data.

Why we care. The enhanced controls and creative tools should allow you to efficiently create and optimize content across multiple platforms without needing to rebuild campaigns from scratch. With Nielsen data reporting strong Demand Gen return on ad spend compared to paid social and features like local inventory integration shows you can now more effectively connect online and offline presence while getting better performance for your investment.

What’s next. You can no logner create new Video Action Campaigns starting in April. Advertisers are encouraged to upgrade manually from Video Action Campaigns to Demand Gen before the automatic upgrade in July.

Bottom line. Google is consolidating its video advertising tools under the Demand Gen umbrella while adding new features to help advertisers better compete with social media platforms.