Google Ads has introduced several enhancements to its Demand Gen campaigns, aiming to make them more accessible and effective for advertisers with lower budgets. Here’s a detailed overview of these updates:
Lower Budget Accessibility
Previously, Demand Gen campaigns were recommended for advertisers with a daily budget of at least $100 or 20 times the expected average conversion value. However, recent updates have made these campaigns more accessible to advertisers with smaller budgets. For instance, Conversion Lift now operates effectively at lower spend levels and conversion volumes, allowing advertisers to test specific campaigns or manager accounts to understand the incrementality of running multiple campaign types simultaneously. (blog.google)
Enhanced Reporting and Attribution
To provide clearer insights into campaign performance, Google has introduced Platform Comparable conversion columns. These metrics help advertisers measure campaigns in a way that aligns with the default attribution models used on other platforms, facilitating more straightforward cross-platform comparisons. (blog.google)
AI-Powered Optimization
Google has integrated over 60 AI-powered improvements into Demand Gen campaigns, resulting in a 26% increase in conversions per dollar spent. These enhancements focus on ramp time, bidding strategies, and other optimization areas to improve campaign efficiency. (blog.google)
Transition from Video Action Campaigns
As of April 2025, new Video Action Campaigns are no longer being created in Google Ads or Search Ads 360. Existing Video Action Campaigns will be automatically upgraded to Demand Gen campaigns by July 2025. Advertisers can transition their budgets manually, use the copy and paste tool, or utilize the migration tool to facilitate this upgrade. (Google Help)
Testing and Experimentation
The updated Conversion Lift feature allows for testing with smaller budgets and conversion volumes, enabling advertisers to assess the effectiveness of running multiple campaign types simultaneously. This flexibility supports more granular experimentation and optimization. (EMARKETER)
Implementation Tips for Advertisers with Lower Budgets
- Start with a Daily Budget of $10–$20: Begin with a modest daily budget to test the waters and gather initial performance data.
- Utilize Conversion Lift for Incrementality Testing: Employ the Conversion Lift feature to evaluate the incremental impact of your campaigns without requiring significant spend.
- Leverage AI-Driven Optimization: Take advantage of Google’s AI enhancements to optimize bidding and campaign performance, even with limited budgets.
- Monitor and Adjust: Regularly review campaign performance and make necessary adjustments to maximize efficiency and return on investment.
These updates reflect Google’s commitment to providing more inclusive and effective advertising solutions, enabling advertisers with varying budget sizes to leverage the power of Demand Gen campaigns.
Google’s Demand Gen campaigns have proven effective for advertisers with lower budgets, delivering impressive results across various industries. Here are some detailed case studies showcasing their success:
Film Distributor: Boosting Ticket Sales with Mobile-First Strategy
A film distributor launched a YouTube Demand Gen campaign to drive ticket sales for a theatrical release. By focusing on mobile-first placements and leveraging cinematic video creatives, the campaign achieved:
- 43% lower cost-per-click (CPC)
- 7.6% highest achieved click-through rate (CTR)
- 40% lower CPC on YouTube placements
This approach effectively turned YouTube movie trailer interest into ticket sales across key U.S. markets. (Strike Social)
NW Sewer & Drain: Generating Quality Leads Cost-Effectively
Zen 9 Marketing implemented a custom Demand Gen campaign for NW Sewer & Drain to attract quality leads. By creating a mix of eye-catching video and image ads targeting individuals actively searching for sewer and drain services, the campaign resulted in:
- $21.71 per lead
The client reported being “very busy” with substantial jobs, indicating the campaign’s success in generating valuable leads. (Zen 9 Marketing)
Educational Institution: Lowering Cost-Per-Acquisition Significantly
A university utilized Demand Gen campaigns to increase brand awareness and student enrollment. By offering valuable content like quizzes and guides, the campaign achieved:
- 60% reduction in cost-per-acquisition
This strategy effectively attracted students from new regions, demonstrating Demand Gen’s potential for educational institutions. (Learn with Jyll)
B2B Company: Generating High-Quality Leads at Lower Costs
A B2B company implemented a creative Demand Gen strategy using a quiz to generate leads. This approach resulted in:
- Lower cost-per-lead compared to traditional Search ads
The campaign’s success highlights Demand Gen’s effectiveness in B2B lead generation. (Learn with Jyll)
Fashion Retailer: Significant Increase in Purchases and Revenue
A Canadian fashion retailer transitioned from Video Action Campaigns to Demand Gen, resulting in:
- 477% increase in sessions
- 750% increase in purchases
- 685% increase in purchase revenue
This shift demonstrates Demand Gen’s potential to drive significant growth in the retail sector. (Bloom | Digital Marketing Done Right)
These case studies illustrate how Google Ads Demand Gen campaigns can deliver substantial results for advertisers with lower budgets. By strategically utilizing creative formats, targeting, and optimization, businesses can achieve impressive outcomes without significant financial investment.