In April, Google announced that it’s adding a new update to Demand Gen campaigns in Google Ads. They’ll be included in Commerce Media Suite, and this is designed to push YouTube further into performance territory. The update focuses on helping advertisers go beyond simple awareness and instead drive more measurable outcomes across YouTube, Google Discover and Gmail. By using retailer first-party data with Google’s automation, Demand Gen is a new way to reach high-intent audiences and convert them faster.
A key part of this update is how conversions will be measured and optimised. Demand Gen campaigns will now include view-through conversion (VTC) optimisation, meaning conversions can be attributed even when a viewer doesn’t click a YouTube ad but still takes action after seeing it.
A Move from Clicks to Influence
Typically, platforms like YouTube have been seen as top-of-funnel marketing channels. It provides strong reach and brand awareness, but it’s been a difficult platform to tie directly to conversions. This is where Google’s latest Demand Gen update starts to change things. By factoring in view-through behaviour, Google is recognising that users don’t always click immediately. They might see an ad, continue browsing and convert later through another channel or touchpoint.
Demand Gen campaigns are now being optimised to account for that behaviour, which changes how performance is generally evaluated:
- Conversions are no longer tied only to clicks
- Video views become part of the conversion journey
- Campaigns can optimise toward actions that happen after views
Google says Demand Gen campaigns are already driving an 18% higher share of conversions from new customers than the paid media average.
Another important part of this update is the integration of retailer data. Advertisers can now use first-party catalogue and conversion data in their campaigns. This means ads can be informed by what users are engaging with, their data and where demand is strongest. We think this will create a more connected loop between discovery and conversion for brands.
Our take is that Demand Gen is moving YouTube from primarily an awareness channel to operating further down the funnel. For our clients, that means we can capture intent earlier and then turn that attention into measurable actions faster. For advertisers, the upside is better efficiency – stronger audience signals, smarter automation and clearer paths from video views to leads or sales. It should also improve how we test creative at speed and scale winners quickly. In practice, this gives us a better full-funnel setup with less wasted spend at the top, quality traffic in the middle and better outcomes at the bottom.
A More Connected Demand Gen Ecosystem
With this new update and Demand Gen being part of the Commerce Media Suite, campaigns aren’t as isolated as before. They’ll now form part of a system that connects creative – particularly video assets – audience intent signals and retail and conversion data. This allows Google’s automation to work across multiple points, identifying where opportunities exist and adjusting campaigns accordingly.
For advertisers, this could reduce the need for highly manual optimisation, but it also increases the importance of strong inputs. Creative quality and audience signals all play a role in how effectively the system performs.
The Final Word
For brands already investing in YouTube, this update could change how performance is measured and how budgets are allocated across the funnel. It could also create new opportunities to use video as a more direct way to drive results.
As with most updates of this kind, the impact will depend on how campaigns are structured and how well inputs are aligned. If you’re reviewing how Demand Gen would fit into your wider paid media strategy, our team is always available to help. Feel free to get in touch!