Key Update: Video Action vs. Demand Gen Campaigns - what advertisers need to know
As Google Ads prepares to transition "Video Action Campaigns" (VAC) to "Demand Gen" by March 2025, advertisers should brace for a significant transformation in campaign strategy. This change emphasizes Google’s dedication to multi-format, full-funnel campaigns, and showcases an increasing interest in Demand Generation strategies. Understanding these updates is crucial for marketers looking to optimize their advertising efforts.
Placement Information
The most notable difference lies in the placement options. Video Action Campaigns traditionally focused on promoting ads on YouTube, specifically targeting Shorts, In-Stream ads, and video partners. In contrast, Demand Gen campaigns will include all Video Action placements while expanding to encompass Discover and Gmail. This broader reach allows advertisers to engage audiences across various Google platforms, increasing the potential for visibility and engagement.
Ad Formats
When it comes to ad formats, Demand Gen campaigns will support a wider array of creatives, including videos, images, and carousel formats. This diverse selection enhances the opportunity for advertisers to connect with their target audience in more engaging and effective ways. By leveraging multiple formats, marketers can tailor their messages to better resonate with consumers at different stages of the buying journey.
Campaign Goals
The strategic goals also differ between the two campaign types. Demand Gen focuses on mid-funnel metrics, aiming to drive awareness and consideration among potential customers. In contrast, VAC typically targets lower-funnel conversions. However, both campaign types can serve different stages of the customer journey, depending on the chosen bidding strategy, allowing advertisers to optimize based on their objectives.
Why did Google decide to push the use of Demand Gen campaigns?
Enhanced Revenue Potential for Google
The upcoming transformation in billing models reflects a shift from the Cost Per Mille (CPM) structure used in Video Action to a mixed model for Demand Gen that includes both CPM and Cost Per Click (CPC) options. This means advertisers will pay for more interactions, offering Google a diversified revenue stream. For example, advertisers will incur charges for teaser clicks in Gmail ads, encouraging user interaction before expanding the ad content. Similarly, Discover campaigns will use CPC for images and engaged views for videos, defined as views lasting a minimum of five seconds.
Simplified Campaign Management
The integration of these campaign types is likely to streamline the overall management process. By consolidating ad formats and placement options, advertisers may find it easier to manage their budgets effectively, leading to increased budget utilization and improved return on investment (ROI) for their campaigns.
Cross-Format Optimization
With the new Demand Gen structure, advertisers will benefit from cross-format optimization. Google’s algorithms will be better positioned to identify which ad formats – whether images, carousels, or videos – generate the best performance. This capability is contingent upon an adequate budget but could significantly enhance overall campaign effectiveness.
Holistic Performance Measurement
A unified campaign structure enables improved performance measurement, allowing advertisers to better attribute conversions from mid-funnel to lower-funnel stages. This measurement approach aligns with Google’s Performance Max strategies, providing a comprehensive view of ad effectiveness and customer engagement.
Competitive Positioning
Finally, this update sends a clear message to competitors such as Meta and TikTok. By adopting robust “Paid-Social” campaign types, Google is actively participating in a competitive landscape that continues to evolve. The commitment to Demand Gen strategies positions Google as a formidable player in the digital advertising space.
For ongoing insights and expertise in Google Ads, connect with industry leaders and professionals who can help you stay ahead of the curve in digital marketing strategies.
As a Google Ads expert, I bring proven expertise in optimizing advertising campaigns to maximize ROI.
I specialize in sharing advanced strategies and targeted tips to refine Google Ads campaign management.
Committed to staying ahead of the latest trends and algorithms, I ensure that my clients receive cutting-edge solutions.
My passion for digital marketing and my ability to interpret data for strategic insights enable me to offer high-level consulting that aims to exceed expectations.
Google Partner Agency
We're a certified Google Partner Agency, which means we don’t guess — we optimize withGoogle’s full toolkit and insider support.
Your campaigns get pro-level execution, backed by real expertise (not theory).
4.9 out of 5 from 670+ reviews on Fiverr.
That’s not luck — that’s performance.
Highly recommend Matteo to set up your server side tracking. He has a deep understanding of e-commerce tracking and will go above and beyond to make sure everything is set up correctly and working 100%. If you are scaling your store this set up is non-negotiable in my opinion and there isn't many people who have this much knowledge or put the effort in to get it right. Thanks again!
avorodesign.com
I can only recommend Matteo! He was very patient, professional and very knowledgeable about GA4, Consent Mode v2, and GDPR compliance. Communication was clear, and the setup was done professionally and efficiently. Highly recommend him for anyone needing reliable tracking implementation.
www.natureiki.life
Matteo shines in the realm of online professionals. His work is not only deep in data but also complemented by his proactive communication and cooperation, setting a new standard for freelancers. If you want someone who truly exceeds expectations, look no further. Highly recommended!
www.omanbeverlysmyth.com
Exceptional Service Beyond Expectations - Outstanding Service Impeccable depth, flawless delivery, and exceptional language fluency—this service exceeded all expectations. Highly recommended. Matteo truly ROCKS!!!
ium-paris.com
Top-notch, always highly value working with Matteo. An absolute Google Ads Genius. This is approximately the 8th time I have hired him and he's helped us get 6-7 ROAS. We are excited in continuing to improve our lead flow. Hire this guy if you need Google Ads help. Thanks Matteo!
www.dleeventgroup.com
I finally found the guy who can setup server side tracking and all the ecosystem properly. I definitely recommend Matteo. He is very responsive, kind and wants to dig into things. He configured GA4, Meta, Google Ads, Outbrain and google consent v2 with Cookiebot. Thanks Matteo.
inomega.fr
MB Adv delivered exceptional work with outstanding professionalism and lots of patience, taking time to see effects of changes made and not just do the work and submit it. The proactive communication and video summaries of the work completed made working with Matteo a pleasure, as he consistently went above and beyond. Highly recommended for web analytics projects! We are already working on another project.
www.withnellsensors.co.uk
Working with Matteo on my Google Ads was a game-changer. He's not just a strategist, he's a true partner. He understood my goals and tailored a campaign that perfectly reached my target audience. I'm grateful for his expertise and dedication.
dccargo.com
Click-driven mind
with plastic-brick obsession.
We build Google Ads campaigns with the same mindset we use to build tiny brick worlds: strategy, patience, and zero tolerance for wasted pieces.
Data is our blueprint. Growth is the only acceptable outcome.
