How to Set Up Google Ads Demand Generation Campaigns: A Step-by-Step Guide

How to Set Up Google Ads Demand Generation Campaigns: A Step-by-Step Guide

demand gen campaigns scaling business Nov 27, 2024

Looking to scale your business beyond high-intent search traffic? Demand generation campaigns in Google Ads help you reach new audiences, spark interest, and build long-term customer demand - even when people aren’t actively searching for your product.

 

In this guide, we’ll show you how to set up Google Ads demand gen campaigns step-by-step, share proven best practices, and help you avoid the common pitfalls that waste budget and stall results.

Key Takeaways

  • Demand gen campaigns are ideal for scaling once your Search or Shopping campaigns are already profitable.

  • They focus on creating awareness and interest, rather than targeting users with immediate purchase intent.

  • The right timing is crucial—avoid launching demand gen too early or without a solid performance foundation.

  • You need at least 100 users in your audience segment to unlock lookalike targeting features.

  • Video and image creatives must be highly engaging, with a strong hook and a clear call-to-action.

  • Use a structured step-by-step setup process, from campaign creation to audience targeting and ad design.

  • Monitor campaign performance closely, especially in the early stages, to refine your targeting and creative.

 

What Are Demand Generation Campaigns?

Demand gen campaigns in Google Ads are designed to create awareness and interest in your products or services. Unlike search or shopping campaigns that target users with high purchase intent, demand gen campaigns are ideal for:

 

  • Introducing New Products: Educating audiences about offerings they might not yet know exist.
  • Reaching New Audiences: Leveraging lookalike targeting to connect with potential customers based on existing audience behavior.
  • Scaling Your Business: Complementing already profitable campaigns to achieve further growth.

Types of Demand Generation Campaigns

Google Ads offers several formats that can be used for demand generation, each tailored to different stages of the customer journey. Choosing the right type of demand gen campaign depends on your goals—whether you’re aiming for awareness, engagement, or conversion over time.

Here are the main types of demand generation campaigns you can run:

1. Video Campaigns (YouTube)

These are perfect for building awareness and emotional connection. You can use skippable in-stream ads, bumper ads, or non-skippable formats to reach a broad audience.

Best for:

  • Brand storytelling

  • Product launches

  • Top-of-funnel reach

2. Discovery Campaigns

Discovery ads appear across YouTube Home, Gmail, and the Discover feed—placing your brand where users are exploring new content.

Best for:

  • Visual storytelling

  • Product discovery

  • Engaging warm leads or lookalikes

3. Display Campaigns (with Broad Targeting)

While Display ads are typically conversion-focused, you can use broad targeting and creative visuals to drive upper-funnel awareness.

Best for:

  • Retargeting soft-engaged users

  • Expanding reach into related interest segments

  • Keeping your brand top-of-mind

4. Ad Sequence Campaigns

If you're using video ads, ad sequences allow you to tell a story over time, showing viewers different creatives in a specific order.

Best for:

  • Complex customer journeys

  • Educational campaigns

  • High-ticket offers that need nurturing

5. Demand Gen Campaigns (Beta)

Google’s dedicated Demand Gen campaign type (replacing Video Action Campaigns) blends YouTube, Discovery, and Gmail into one format with AI-powered targeting, designed specifically for demand creation.

Best for:

  • Scalable growth across multiple surfaces

  • Combining video and static creatives in one campaign

  • Businesses with strong creative assets and some conversion history

When Should You Use Demand Gen Campaigns?

 

FAQ

What is a Google Ads demand generation campaign?

A demand generation campaign in Google Ads is designed to create awareness and interest in your brand, products, or services—especially among people who may not yet be actively searching for them. These campaigns use video and image creatives to reach new audiences and build top-of-funnel engagement.

When should I use demand gen campaigns?

Demand gen campaigns work best once your existing Search or Shopping campaigns are already performing well. They’re ideal for scaling your business, reaching new audiences, or promoting products with low search volume.

How much audience data do I need for a demand gen campaign?

You need a minimum of 100 users in a data segment to build lookalike audiences in demand gen campaigns. You can check this in Google Ads under Tools > Audience Manager > Data Segments.

What assets are required to launch a demand gen campaign?

You’ll need strong creative assets, including high-quality videos or images, a clear hook, problem-solution messaging, trust signals (like testimonials), and a clear call to action. You should also have custom audience segments ready for targeting.

Can I run demand gen campaigns without video ads?

Yes, demand gen campaigns support image and carousel ads in addition to video. However, video typically performs best when it comes to engagement and awareness.

Should I use demand gen campaigns to replace Search or Shopping?

No. Demand gen is designed to complement—not replace—Search or Shopping campaigns. It’s best used once those channels are already delivering consistent results.

What budget should I start with for a demand gen campaign?

Start with a conservative daily or total campaign budget. This allows you to collect initial performance data and optimise as you go. Once results are stable, you can scale your budget accordingly.