Google Ads has recently announced plans to enhance its Video Action Campaigns (VAC) by merging them into the more versatile Demand Gen campaigns. This strategic move aims to help advertisers capture emerging demand and drive growth through a multi-format approach.
This shift is significant for advertisers using VAC, as they could see significant benefits from adopting Demand Generation campaigns. According to internal Google data, combining video and image assets in Demand Generation can increase conversions by 20% at the same cost per action (CPA), compared to those relying solely on video.
One of the key advantages of Demand Gen campaigns is expanded reach. Advertisers will be able to engage with up to 3 billion monthly users across YouTube, Discover, and Gmail. This increased reach provides advertisers with the opportunity to connect with a larger audience and potentially drive more conversions.
Another benefit of Demand Gen campaigns is creative flexibility. Advertisers can now use both video and image ads in a single campaign, giving them more options to create compelling and engaging content. Additionally, granular insights are available to optimize creative strategies, allowing advertisers to make data-driven decisions and improve their campaign performance.
Enhanced audience targeting is also a noteworthy feature of Demand Gen campaigns. The inclusion of lookalike segments helps brands reach new audiences that are similar to their existing customer base. This targeting capability allows advertisers to expand their reach while still maintaining relevance to their target audience.
Advertisers who have been using only video assets in Demand Gen have seen performance comparable to VAC. This ensures a smooth transition for advertisers who have been relying solely on VAC, without compromising on results. The transition from VAC to Demand Gen will take place gradually, with a migration tool for manual upgrades being launched in early 2025 and automatic upgrades for all remaining VACs occurring in Q2 2025.
Google highlighted the success story of DoorDash, a well-known U.S.-based food delivery service, to demonstrate the effectiveness of Demand Gen campaigns. DoorDash reported a 15x higher conversion rate and a 50% more efficient CPA using Demand Gen compared to VAC. These impressive results showcase the potential benefits that advertisers can expect from adopting Demand Gen campaigns.
Overall, this update from Google Ads represents a strategic move to meet evolving consumer expectations and preferences. By testing and implementing Demand Gen campaigns now, advertisers can gain a competitive advantage and drive stronger, more efficient results before their competitors catch up. The transition timeline provided by Google allows advertisers to plan their migration from VAC to Demand Gen effectively and take full advantage of the enhanced features and capabilities offered by Demand Gen campaigns.
In conclusion, Google Ads’ plans to enhance Video Action Campaigns through the adoption of Demand Generation campaigns present exciting opportunities for advertisers. The combination of video and image assets, expanded reach, creative flexibility, enhanced audience targeting, and consistent performance make Demand Gen campaigns a powerful tool for driving growth and capturing emerging demand. Advertisers who embrace this shift early on can position themselves for success and stay ahead of the competition in the ever-evolving advertising landscape.
