7 Stats showing the power of Demand Gen campaigns
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Demand Gen is a type of Google ad campaign that lets advertisers and businesses find, engage and convert customers. These campaigns aim to increase awareness and demand for a product or service. When used as part of a detailed PPC strategy, they can be a powerful driver in results.
Since launching in 2023, Demand Gen campaigns have replaced Discovery ads. They are designed to connect brands to audiences before they search and can enable advertisers can reach up to 3 billion monthly active users.
Do you need support with your Demand Gen campaigns or PPC strategy? Then our award-winning PPC team can help, contact them today.
Stats showing the power of Demand Gen
Before we look further into the campaign type, here’s a selection of stats that show you why you should include them in your PPC strategy.
- One in three consumers say they have purchased something they discovered in Google feeds that they weren’t originally shopping for (source)
- 67% of users are more likely to purchase a product after seeing a YouTube advert (source)
- Demand Gen campaigns have a three times higher CTR than paid social campaigns (source)
- 63% of consumers have discovered new brands and products on Google feeds, of those 91% have resulted in conversions (source)
- In 2024, YouTube shorts were viewed more than 70 billion times every day (source)
- The CPA of Demand Gen campaigns is 61% less than paid social campaigns (source)
- 59% of consumers say YouTube adverts are more relevant and effective than TV ads (source)
Now you’ve seen the numbers behind how the campaigns can drive performance, it’s time to learn more about the campaigns and how to launch them.
How does Demand Gen work?
Demand Gen campaigns target users at the top and middle of the funnel, helping build awareness and provide advertisers with more data and insights that can help optimise their PPC campaigns further.
There are three ways users can generate results with Demand Gen:
- Reach customers by enabling brands to show up across YouTube (including Shorts), Discover and Gmail.
- Inspire action through relevant and engaging adverts.
- Scale your strategy and business by using Demand Gen’s AI-powered solutions.
Overall Demand Gen is about expanding the impact of your Google advertising, tailoring your ads to your audience to drive results, and using AI-powered bidding and measurement to ensure your feeding the sales funnel and understanding the impact of your campaigns.
It’s important to remember that Demand Gen should be part of a detailed PPC strategy and therefore we recommend creating a series of campaigns using Google’s best practices to generate the ROI you’re looking for.
Who should use Demand Gen?
- As Demand Gen enables you to expand your reach and discover new audiences it’s a great strategy for brands who are:
- Looking to reach new markets
- Have new product launches
- Want to increase market share
- Need to streamline their marketing to support their sales
Still unsure? Later in this blog, we showcase clients for whom we have generated successful Demand Gen campaigns.
Demand Gen best practices
To ensure your Demand Gen campaigns are generating the results and returns you’re hoping for, there are a few best practices you should follow.
Create compelling assets
With Demand Gen campaigns connecting advertisers with customers over visual platforms like YouTube, you must create high-quality engaging assets that grab your audience’s attention.
It’s also recommended to use a mixture of images and videos. Advertisers who use both images and videos on Demand Gen campaigns saw 6% more conversions per dollar than those only using images.
Have a strong call to action
Ensure your audience knows what action it is you wish them to take once they see your ads. As Demand Gen focuses more on the top and middle of the funnel, a strong call to action can be key in providing you with more insights and data to optimise your campaigns to generate conversions.
Optimise your landing pages
Once your audience takes your desired action, you need to ensure the pages on which they land are high-quality, align with your ad content and provide a seamless user experience.
Set a realistic budget
Now, what budget you need is unique to your business and goals. However, Google recommends your daily budget should be 15x your target CPA.
Track and measure
So you can understand how your campaigns are performing you need to consistently monitor and report on their performance.
Within Google, you can review by ‘ad format’ which will show how your campaigns are performing across the different YouTube Shorts, in-stream and in-feed. We also recommend allocating a portion of your budget to a test-and-learn strategy so you can fine-tune your creative, targeting and goals.
Demand Gen in action
At Embryo our award-winning team create and manage a range of PPC strategies for e-commerce and lead-generation businesses. One of our clients is a global provider of quality printers, plotters and cutters. They chose Embryo to create PPC campaigns that would drive awareness, engagement and leads. As part of our strategy, we launched a series of Demand Gen campaigns.
These campaigns created awareness at the top and middle of the funnel and since launching have helped the brand to reach over 653,000 users and drive 4,378 clicks. This data helped us optimise our campaigns further and we were able to increase conversions by 82% at a lower cost per conversion.
Similarly, we have used Demand Gen as part of our PPC strategy for a provider of video interviewing software. Being new to the competitive market they wanted campaigns that would drive awareness and connect them to hiring managers. By launching a Demand Gen campaign we generated 3,700 clicks.
Ready to launch your Demand Gen campaigns?
If you’d like some support from a team that has a proven track record for creating powerful PPC campaigns then get in touch. Or, if you’d like to try it yourself, then Google has a helpful guide to get you started.
- More resources on Demand Gen and PPC:
- Targeting your PPC customers
- 30 YouTube Shorts stats you need to know
- The basic fundamentals of PPC advertising
