Marketing has always been about reaching the right people at the right time. But with digital platforms modifying constantly, businesses must adapt to keep their ads relevant and effective. If you’re running campaigns on Google Ads, you’ve probably noticed the frequent updates that shape how advertisers connect with their audience. The upcoming Google Ads new features are set to transform how businesses approach online advertising, particularly with Demand Gen campaigns.
Imagine reaching billions of users across platforms like YouTube, Discover, and Gmail—while maintaining creative control and improving conversions. That’s exactly what Google is offering with these latest updates. But what does this mean for advertisers?
If you’re used to Video Action Campaigns (VAC), get ready for a shift. Google is phasing them out in favor of Demand Gen campaigns, a more dynamic way to engage customers through tailored ads. This transition isn’t just about new tools, it’s about making ads more impactful, helping businesses reach the right customers, and improving overall campaign efficiency.
What’s Changing in Google Ads?
Starting in early 2025, Google is rolling out significant updates to its ad platform. Here’s what you need to know:
- March 2025: Google will disable the creation of new Video Action Campaigns.
- April 2025: Advertisers will no longer have the option to create VACs.
- July 2025: Existing Video Action Campaigns will automatically convert into Demand Gen campaigns.
(Source: https://support.google.com/google-ads/answer/15110871?hl=en)
This shift is not just about replacing an old format with a new one. Google is enhancing ad reach, creative flexibility, and audience targeting to ensure businesses see better engagement and return on investment.
How Demand Gen Campaigns Improve Advertising
- Reaching More People Across Platforms
Demand Gen campaigns enable businesses to connect with up to 3 billion monthly users across multiple Google properties. Whether your audience is watching videos on YouTube, scrolling through Discover, or checking Gmail, your ads can now appear seamlessly in these environments.
- More Creative Freedom
Advertisers no longer have to choose between video or image ads. Demand Gen campaigns allow both formats in a single campaign, helping businesses create more engaging and diverse ad experiences.
- Smarter Audience Targeting
With Demand Gen targeting, advertisers can reach people who are most likely to engage with their products. Lookalike audiences help businesses find new customers who share traits with their best-performing audiences, making campaigns more effective.
- Better Performance Without Higher Costs
Tests show that businesses that use both video and image assets in Demand Gen campaigns see 20% more conversions at the same cost per action. The improved ad format delivers a higher return on ad spend compared to Video Action Campaigns.
What Are the Main Features of Demand Gen Campaigns
To help businesses make the most of these updates, Google is introducing several powerful features:
- Expanded Channel Controls – Advertisers can decide exactly where their ads appear across YouTube, Discover, and Gmail.
- Google Display Inventory – Ads can now reach over 90% of the global internet population through Google’s vast network.
- 9:16 Vertical Image Ads – A new format optimized for YouTube Shorts, helping businesses engage with mobile-first users.
- Automated Video Enhancements – Google’s AI can resize, flip, and adjust videos for different formats, improving ad scalability.
- Retail-Focused Features – Businesses can showcase real-time product availability in local stores, helping drive in-store sales.
Why Advertisers Should Make the Switch Now
Rather than waiting for Google to migrate your existing campaigns, it’s a good idea to start using Google Ads advanced strategies now. Transitioning early means you’ll have time to experiment, optimize, and ensure your ads perform at their best when the full rollout happens in mid-2025.
Here Are The Steps to Transition Smoothly
- Set up a Demand Gen campaign today. Start testing its features and performance compared to your existing Video Action Campaigns.
- Upload both video and image ads. This combination improves conversions and helps maintain a strong presence across all placements.
- Refine your targeting. Use Google’s AI-driven tools to create custom and lookalike audiences for better engagement.
- Monitor performance closely. Track metrics like conversions, cost per action, and return on ad spend to adjust your strategy as needed.
Leveraging AI for Better Campaign Performance
Google’s AI is at the core of these updates, making advertising smarter and more efficient. AI-powered Google Ads help advertisers make better decisions by automating creative optimization, improving targeting accuracy, and enhancing performance tracking.
Benefits of AI in Demand Gen Campaigns
- Automated Creative Adjustments: AI tweaks ad creatives for different platforms, ensuring better engagement.
- Data-Driven Audience Targeting: Lookalike models help find high-value customers based on past performance.
- Optimized Bidding Strategies: AI adjusts bids in real time to maximize conversions and lower costs.
How to Optimize Demand Gen Campaigns for Best Results
To get the most from Demand Gen optimization, follow these best practices:
- Test Multiple Ad Formats: Run video, image, and carousel ads to see what works best for your audience.
- Use High-Quality Creatives: Ensure your visuals are engaging, clear, and tailored for different platforms.
- Monitor Campaign Performance Regularly: Track key metrics like conversion rates and ad placements to refine your strategy.
- Experiment with Lookalike Audiences: Expand your reach by targeting users similar to your existing customers.
- Adjust Bidding Strategies Based on Performance: Optimize bids to ensure you’re getting the most out of your ad spend.
Conclusion
The shift from Video Action Campaigns to Demand Gen campaigns represents a major upgrade in online advertising. By embracing Google Ads campaign management tools and AI-driven features, advertisers can stay ahead of the competition in 2025 and beyond.
If you’re serious about growing your business through digital advertising, now is the time to adapt. Don’t wait for the forced migration—start using these new tools today and make the most of Google’s evolving ad platform.
WSI-Optimized Web Solutions specializes in Google Ads campaign management, helping businesses navigate these updates with ease. Our team of experts will ensure your ads reach the right people, drive more conversions, and maximize return on ad spend. Get in touch today and start optimizing your advertising strategy!
By Madhu Chaddha