Google's New Demand Gen Campaign Updates: Learn to Leverage Added Controls

Google has announced several updates to Demand Gen campaigns, and for once, these updates actually give advertisers more control. As someone who has worked extensively with Google Ads, I’m excited about what these changes mean for optimizing performance and refining our approach to Demand Gen campaigns.

Expanded Channel Controls: More Control, Better Optimization

Starting in March, advertisers will be able to specify exactly where their ads show across YouTube, Discover, and Gmail. This is a major win because, until now, we’ve had limited control over placements, which meant spending could easily get wasted on lower-quality traffic sources. 

One of the biggest benefits? The ability to target YouTube Shorts specifically. Short-form, full-screen video ads are a completely different experience from traditional YouTube placements, so being able to segment and optimize separately is a game-changer.

From an optimization perspective, expanded channel controls allow us to:

• Test YouTube Shorts-Only Targeting: Previously, targeting Shorts effectively was difficult. With this update, we can run highly tailored creative exclusively for Shorts, which is a huge opportunity for brands already active on TikTok or Instagram Reels.
• Opt Out of YouTube Shorts: If a brand doesn’t have strong full-screen vertical video assets, forcing horizontal videos into this format could hurt performance and brand perception. Now, advertisers can choose not to run in placements that don’t suit their creative.
• Exclude Low-Performing Placements: Many advertisers struggle with low-quality or spam traffic from the Google Display Network. If historical data suggests display traffic isn’t performing well, we can now opt out and allocate more budget to higher-converting placements.

Creative Enhancements: More Tools for Video Ads

Google is rolling out new creative tools to help advertisers get more from their video assets:

• Full-Screen Vertical (9:16) Image Ads for YouTube Shorts (coming late February) will allow us to run more engaging, mobile-first ad experiences.
• Video Enhancements will provide new tools to create shorter versions of existing videos, helping brands optimize for different placements.

The Transition from Video Action Campaigns to Demand Gen

One of the biggest structural changes coming in 2025 is the transition from Video Action Campaigns to Demand Gen campaigns. Here’s what you need to know:

• April 2025: Advertisers will no longer be able to create new Video Action Campaigns.
• July 2025: Existing Video Action Campaigns will be automatically upgraded to Demand Gen.

If you’re currently running Video Action Campaigns, I highly recommend testing Demand Gen campaigns now. This will give you a head start on understanding how performance compares, what optimizations will be necessary, and how to navigate the transition smoothly. Google is offering an upgrade tool (available in March) to help apply learnings from Video Action Campaigns to Demand Gen, but the more control we have over the transition, the better.

Is Google Finally Giving Advertisers More Control?

Lately, it does feel like Google is throwing advertisers a bone by reintroducing more campaign controls. Many of us have tested AI-driven campaign types, hoping for the efficiency and results Google promises, but they often work best for brands with a broad audience. More niche brands or those with a very specific ICP (Ideal Customer Profile) tend to struggle with AI-driven approaches, leading to wasted spend and low-quality conversions.

I see these new controls as Google’s way of encouraging more advertisers to adopt Demand Gen campaigns. By offering increased flexibility, they’re making it easier for brands to test these campaign types without feeling like they’re throwing budget into a black hole. While it’s a step in the right direction, there’s still room for improvement—especially around visibility into performance data and better exclusion capabilities at a more granular level.

In Summary

Overall, these updates provide much-needed improvements for advertisers running Demand Gen campaigns. The ability to control placements, refine creative assets, and prepare for the Video Action Campaign transition will help us optimize spend and drive better performance. If you haven’t already, start testing Demand Gen campaigns now to get ahead of the changes coming in 2025.

Let’s see how these updates play out—but for now, I’m cautiously optimistic that Google is (finally) giving us a little more control.