Google Demand Gen Campaigns: Migration and Best Practices

Google Demand Gen Campaigns: Migration and Best Practices

In the ever-evolving realm of digital marketing, staying abreast of the latest tools and strategies is vital for success. Google Ads, a powerhouse in the world of online advertising, consistently introduces new features to help advertisers effectively reach their target audience. One such feature causing a stir in the digital marketing landscape is Google Demand Gen campaigns.

In this comprehensive guide, we will explore the intricacies of Demand Gen campaigns, understand their distinctions from previous offerings, discuss the migration process, and delve into the best practices that can help you harness the full potential of this exciting addition to the Google Ads toolkit.

Understanding Demand Gen Campaigns

What are Demand Gen Campaigns?

Demand Gen campaigns, short for Demand Generation campaigns, are the latest addition to the Google Ads arsenal. These campaigns are designed to create new demand for your products or services by leveraging the power of automation, algorithmic targeting, and machine learning. They directly replace Discovery campaigns, which were more manual and had fewer inventory types.

Key Differences from Discovery Campaigns

While both Demand Gen and Discovery campaigns use algorithmic targeting, there are significant differences that set them apart:

1. Focus on Automation: Demand Gen campaigns lean heavily into automation and machine learning, following in the footsteps of Performance Max campaigns. This shift means that much of the heavy lifting in campaign optimization is now handled by Google’s algorithms.
2. Top-of-Funnel Approach: Demand Gen campaigns are primarily focused on raising awareness and filling the top end of your marketing funnel. In other words, their main goal is to create new demand.
3. Algorithmic Targeting: Unlike their predecessors, Demand Gen campaigns offer fewer options for manual targeting settings. However, you can still add your audiences and create lookalikes, a feature familiar to those who have used Meta Ads. This involves seeding the system with a list, such as existing customers or website visitors, and targeting users who closely match these profiles.
4. Creative Freedom: One of the significant differentiators between Demand Gen and Discovery is the creative aspect. Discovery campaigns were limited to images, carousels, or product data feed-based creatives, while Demand Gen campaigns let you incorporate video content, including standard YouTube videos and Shorts.

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Shifting the Paradigm

The introduction of Demand Gen campaigns signals a shift in how Google Ads is perceived. Historically, Google Ads has been regarded as a channel for capturing existing demand when people are actively searching for something. Demand Gen, however, aims to change that perception. Even the user interface is designed to resemble paid social campaigns, aligning it with the strategies and structures of Meta Ads.

Nevertheless, it’s essential to remember that Demand Gen may not be the ideal tool for driving immediate conversions. You might observe a lower reported Return on Ad Spend (ROAS) compared to a similar campaign on Meta. This is inherent to the nature of generating demand via Google’s products like YouTube and Gmail, rather than on a social media platform.

The question of whether Demand Gen is driving less revenue than other platforms remains to be determined. To gauge its true impact, advertisers may need to rely on third-party revenue and attribution tools.

Migrating to Demand Gen Campaigns

As Google rolls out Demand Gen campaigns and retires Discovery campaigns, it’s essential for advertisers to understand the migration process. To gain insights into this transition, we can look at how the rollout of Performance Max campaigns unfolded and draw parallels to what we might expect with Demand Gen.

Embracing Automation and Machine Learning

The overarching theme in the evolution of Google Ads is the shift toward automation and machine learning. Google is retiring many manual controls and pushing advertisers to embrace automation, which is reflected in the development of products like Performance Max. While some advertisers may find this shift daunting, it’s important to note that Google continually updates and improves these products, often in response to feedback from the PPC community. This responsiveness demonstrates that Google is actively seeking to work in tandem with advertisers to refine its offerings.

However, it’s understandable that trust in Google’s algorithms might be in short supply. The transition involves relinquishing a degree of control as advertisers specify their objectives and provide data inputs, leaving Google to work its magic. Nevertheless, Google’s commitment to this direction is evident, and advertisers must adapt to remain competitive.

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Learnings from the Performance Max Rollout

The rollout of Performance Max campaigns, which also rely heavily on automation and machine learning, provides valuable insights into what we might expect from the transition to Demand Gen.

Here are some key takeaways from the Performance Max experience:

1. Cannibalization of Campaign Types: Performance Max campaigns ended up cannibalizing Local and Smart Shopping campaigns. Similarly, the transition from Discovery to Demand Gen is expected to follow a pattern of cannibalization, independence, and deprecation for Discovery campaigns.
2. Audience Signals: Performance Max campaigns allow you to create audience signals, including those built off the people you target with Demand Gen campaigns. This implies that your campaigns will target individuals that Google deems a good fit at the right moment, a feature you can anticipate in Demand Gen as well.
3. Evolution of Campaign Types: Just as Gmail Sponsored Promotions were absorbed by Discovery campaigns, a similar pattern of evolution is expected as Demand Gen replaces Discovery.

Best Practices for Demand Gen Campaigns

Now that we’ve covered the fundamentals of Demand Gen campaigns and the migration process, let’s delve into best practices for running successful Demand Gen campaigns.

Campaign Management Suggestions

Google has provided recommendations for Demand Gen bidding and budget goals. While these recommendations are still undergoing testing, here’s what they suggest:

• Target CPA: Set your target CPA at approximately twice your standard campaign performance. This approach aligns your campaign with the costs associated with lead acquisition.
• Daily Budget: Google advises setting your daily budget at either 15 times your target CPA or 20 times your average conversion value divided by your target Return on Ad Spend (ROAS). These benchmarks are intended to provide your campaign with the necessary resources to operate effectively and reach new audiences.

It’s crucial to note that these recommendations may make Demand Gen less accessible to accounts and brands with smaller budgets. For example, if you have a limited budget, it might be challenging to adhere to the 15x target CPA daily budget recommendation.

Historically, Google has recommended setting your budget at 5 times your target CPA, which has worked well for Demand Gen in some cases. However, the emphasis on larger budgets to allow for campaign optimization may not be conducive to smaller campaigns.

Based on current testing, Demand Gen seems to align best with accounts that have already maximized their Search, Shopping, and Performance Max campaigns and are looking to layer something new on top. For smaller advertisers with more modest budgets, the campaign may not drive enough conversions to justify its inclusion in the media mix.

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Working with Clients and Leadership

Introducing a new campaign type to clients and stakeholders can be a challenge for many marketers. However, some clients are open to participating in beta programs and trying innovative approaches. They understand that being early adopters can provide a first-mover advantage that sets them apart from the competition.

For clients who are open to experimentation, it’s essential to identify those who are inclined towards beta programs and pitch the idea accordingly. This willingness to embrace new opportunities can be especially valuable for larger accounts, where continuous testing is imperative.

To navigate this landscape, allocate approximately 10% of your overall budget to experiment with new strategies continuously. This could involve launching new campaign types, testing keywords, exploring new Performance Max setups, or identifying opportunities for expansion. It’s important to set a reasonable budget for testing, around 10% of your total spend, as experiments that don’t yield favorable results can impact your entire account’s performance.

Setting Realistic Expectations

Demand Gen campaigns are distinct in their focus on creating new demand. As a result, it’s important to set realistic expectations regarding performance metrics. You may observe fewer conversions with a higher Cost Per Acquisition (CPA) or lower ROAS than you would in Search or Performance Max campaigns. These campaigns are more about building awareness and nurturing potential leads rather than immediate conversions.

In larger accounts with substantial monthly budgets covering various campaign types, it’s vital to allocate a portion of the budget to engage upper-funnel audiences. This includes activities such as generating video views, driving website visits, and enhancing branded searches. While creating fresh demand is critical, it’s important to recognize that it comes at a cost and is not free.

Examples from Managing Demand Gen During the Beta

As part of the beta testing for Demand Gen campaigns, some advertisers have had the opportunity to explore and experiment with this new feature. Here are three examples of early experiments and what was learned from them:

Example 1: Lead Gen/E-commerce Hybrid

In one instance, an advertiser migrated a long-running Discovery campaign that targeted both warm audiences (website visitors and subscribers) and broader audiences (custom intent, affinity, and interests) to Demand Gen. As they ramped up the campaign, they observed significant improvements.

They were able to measure conversions at a decent ROAS and acquire leads at a favorable CPA. This outcome can be attributed to the wealth of historical data that the campaign had accumulated. This use case has proven successful, and the advertiser plans to continue scaling it.

Example 2: Lead Gen with Low Spend

In another scenario, a lead generation campaign with a daily budget ranging from $50 to $100 was launched. While this campaign has started to generate conversions, the conversion rate remains low.

It’s important to note that small budgets may encounter challenges, even with strong signals. Google’s recommendation to set the budget at 15 times the expected CPA may need to be tested and adjusted for smaller budgets.

Example 3: Lead Gen with Moderate Spend

A third test account, also focused on lead generation, had a more substantial daily budget of $1,500. However, it faced challenges as the Target CPA was higher than expected.

This case highlights the ongoing need for further testing and evaluation to determine the ideal budget size for Demand Gen campaigns. Smaller advertisers with limited budgets should also be prepared to assess the performance and feasibility of Demand Gen for their specific circumstances.

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Get Your Plans in Order

Google’s rollout of Demand Gen campaigns is already in motion, and it will continue for the next six months, providing advertisers with ample time to prepare for the transition. As you plan for this shift, focus on setting up creative testing frameworks and allocate resources for testing new strategies. While the platform is relatively new, it’s essential to remember that there are no experts on Demand Gen campaigns other than the individuals who built it. For marketers and media buyers, it’s a new puzzle that requires collaborative problem-solving and exploration.

Furthermore, it’s crucial not to assume that high daily budgets are the only way to make Demand Gen campaigns work. The platform remains dynamic, and Google Ads always has the potential to surprise. By keeping an open mind, continuously testing, and adhering to best practices, advertisers can leverage Demand Gen campaigns to reach new audiences and generate demand effectively.

Conclusion

Google Demand Gen campaigns represent a significant step forward in the world of digital advertising. As they gradually replace Discovery campaigns, advertisers must prepare for the transition and embrace the new opportunities they offer. Demand Gen campaigns operate with a distinct focus on creating demand and awareness, utilizing automation, algorithmic targeting, and innovative ad formats.

The migration process from Discovery to Demand Gen is an opportunity for advertisers to adapt to Google’s evolving landscape, marked by increasing automation and machine learning. Drawing insights from the Performance Max rollout, advertisers can anticipate patterns of cannibalization, independence, and evolution of campaign types.

To run successful Demand Gen campaigns, following best practices is essential. These include setting the right target CPA, allocating budgets thoughtfully, and working closely with clients and leadership to harness the potential of this new campaign type. Realistic expectations are key, as Demand Gen is designed to create new demand, which may not be measured in the same way as performance-oriented campaigns.

As you navigate the transition to Demand Gen, consider the examples and insights shared by early adopters to fine-tune your approach. It’s a dynamic landscape, and surprises are always possible. With careful planning, ongoing testing, and a willingness to explore new strategies, advertisers can maximize the benefits of Demand Gen campaigns and stay at the forefront of digital marketing innovation.

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Frequently Asked Questions (FAQ) on Google Demand Gen Campaigns

Question 1: What are Google Demand Gen campaigns?

Answer: Google Demand Gen campaigns, short for Demand Generation campaigns, are a new advertising feature within Google Ads. They focus on creating new demand for products or services by leveraging automation and algorithmic targeting.

Question 2: How do Demand Gen campaigns differ from Discovery campaigns?

Answer: Demand Gen campaigns are a replacement for Discovery campaigns and use more automation and machine learning. They are geared toward generating awareness and filling the top of the marketing funnel.

Question 3: When are Discovery campaigns being replaced by Demand Gen campaigns?

Answer: Google plans to retire Discovery campaigns, with the transition to Demand Gen campaigns expected to be completed by November 2023.

Question 4: What is the primary goal of Demand Gen campaigns?

Answer: The primary goal of Demand Gen campaigns is to create new demand by reaching and engaging with audiences who may not be actively searching for your products or services.

Question 5: What types of ad formats can I use in Demand Gen campaigns?

Answer: Demand Gen campaigns support a variety of ad formats, including text ads, image ads, video ads, and responsive display ads, making it a versatile platform for creative advertising.

Question 6: How do I migrate my existing Discovery campaigns to Demand Gen campaigns?

Answer: To migrate your Discovery campaigns, you can select them in your Google Ads account and change the campaign type to “Demand Gen.” Google will automatically carry over your settings and targeting options.

Question 7: What are some best practices for managing Demand Gen campaigns?

Answer: It’s recommended to use a target CPA bidding strategy and set your daily budget in alignment with your target CPA. Also, it’s advisable to allocate a portion of your budget for testing new strategies continuously.

Question 8: Are Demand Gen campaigns suitable for advertisers with smaller budgets?

Answer: Demand Gen campaigns may not be ideal for advertisers with smaller budgets, as Google suggests setting daily budgets that could be challenging to meet for accounts with limited resources.

Question 9: How do I set realistic expectations for Demand Gen campaigns?

Answer: Advertisers should understand that Demand Gen campaigns are designed for creating awareness and new demand, so it’s normal to expect fewer conversions with higher CPAs or lower ROAS compared to campaigns focused on capturing existing demand.

Question 10: What can I learn from early experiences with Demand Gen campaigns during the beta testing phase?

Answer: Early tests show that the success of Demand Gen campaigns can vary based on factors like budget size and historical data. Learning from these experiences can help optimize your approach.

Question 11: Is there a specific timeframe for transitioning to Demand Gen campaigns?

Answer: Google is currently rolling out Demand Gen campaigns, and the transition period will extend for the next six months. This gives advertisers sufficient time to adapt and make preparations.

Question 12: What should I focus on during the transition to Demand Gen campaigns?

Answer: As you prepare for the transition, it’s essential to set up creative testing frameworks and allocate resources for experimentation, as Demand Gen is a relatively new platform with much to explore.

Question 13: Are there any surprises to watch out for when using Demand Gen campaigns?

Answer: Google Ads is known for its capacity to introduce surprises and innovations. Advertisers should remain open to changes and adapt their strategies accordingly.

Question 14. Can I use Demand Gen campaigns alongside other campaign types in my advertising strategy?

Answer: Yes, Demand Gen campaigns can be used in conjunction with other campaign types like Search, Shopping, and Performance Max. They can complement your existing campaigns to help reach different stages of the marketing funnel.

Question 15. What kind of audiences can I target with Demand Gen campaigns?

Answer: Demand Gen campaigns offer a range of audience targeting options, including custom audiences, in-market audiences, and lookalike audiences. You can also leverage customer data and website visitor data for targeting.

Question 16. How do I track the performance of my Demand Gen campaigns?

Answer: You can track the performance of your campaigns by implementing conversion tracking within Google Ads. This allows you to measure the success of your campaigns by monitoring conversions and lead generation.

Question 17. Are there any specific industries or businesses that can benefit the most from Demand Gen campaigns?

Answer: Demand Gen campaigns can be valuable for a wide range of industries, especially those looking to expand their customer base or reach new demographics. However, industries with a longer sales cycle, such as B2B or high-consideration consumer products, may find Demand Gen particularly beneficial.

Question 18. Can I run Demand Gen campaigns for local or regional targeting?

Answer: Yes, Demand Gen campaigns can be tailored for local or regional targeting. You can specify location targeting to focus on audiences in specific areas or regions, making it suitable for businesses with localized marketing objectives.

Question 19. Are there any content creation tips for Demand Gen campaigns?

Answer: When creating content for Demand Gen campaigns, focus on creating engaging visuals and compelling ad copy. Utilize high-quality images, videos, and messaging that resonate with your target audience’s interests and needs.

Question 20. What is the role of machine learning in Demand Gen campaigns?

Answer: Machine learning plays a pivotal role in optimizing Demand Gen campaigns. Google’s algorithms utilize machine learning to determine the most effective targeting and ad placements to create demand and awareness effectively.

Question 21. Can Demand Gen campaigns help me reach new audiences outside of Google’s ecosystem?

Answer: Yes, Demand Gen campaigns are designed to help you reach new audiences across Google’s extensive network, which includes Google Search, Display Network, YouTube, and Gmail, providing broad exposure outside of Google’s platform.

Question 22. How can I fine-tune my bidding strategy in Demand Gen campaigns to maximize results?

Answer: To optimize your bidding strategy, regularly review your target CPA and adjust it as needed based on campaign performance. Continuously analyze data and adjust your bidding to achieve your desired results.

Question 23. Can I use Demand Gen campaigns for branding and awareness initiatives?

Answer: Absolutely, Demand Gen campaigns are well-suited for branding and awareness campaigns. They can help you boost brand recognition and reach a wide audience to create demand and drive awareness of your products or services.

Question 24. How do I address conversion delays in Demand Gen campaigns?

Answer: Google recommends allowing Demand Gen campaigns four to six weeks to account for conversion delays and gather learning data. This period helps ensure accurate tracking and optimization of your campaign’s performance.

Question 25. Is there support or resources available for advertisers transitioning to Demand Gen campaigns?

Answer: Google typically provides resources, tutorials, and support for advertisers transitioning to new campaign types. You can access Google Ads Help Center and reach out to Google Ads support for assistance during the transition process.

These frequently asked questions provide an overview of Google Demand Gen campaigns, their migration process, and best practices for effective utilization. Advertisers can leverage Demand Gen to tap into new markets and create demand for their products or services in an evolving digital marketing landscape.