Google Ads has officially announced that its Video Action Campaigns (VAC) will be upgraded to Demand Generation (Demand Gen) campaigns starting in Q2 2025. This change will introduce advertisers to a new era of marketing opportunities, offering improved creative options, expanded reach.

Why This Upgrade is Important for Advertisers

The transition from Video Action Campaigns to Demand Gen represents a crucial evolution for advertisers. Google has designed Demand Gen to provide a more versatile and comprehensive platform, enabling marketers to capitalize on emerging demand through a multi-format approach.

According to internal Google data, combining video and image assets can increase conversions by 20%, with no additional costs per action (CPA).

Expanded Reach Across Google Platforms

One of the most significant benefits of Demand Gen is the ability to engage with users across a wider range of Google properties. While Video Action Campaigns were largely limited to YouTube, Demand Gen campaigns will reach up to 3 billion monthly users across YouTube, Discover, and Gmail.

Creative Flexibility with Multi-Format Campaigns

Demand Gen offers advertisers the creative flexibility to use both video and image assets in a single campaign, allowing them to experiment with different formats and better tailor their ads to specific audiences. This flexibility makes it easier to create compelling campaigns that resonate with different segments of the target market.

Enhanced Audience Targeting with Lookalike Segments

One of the standout features of Demand Gen is its enhanced audience-targeting capabilities, specifically the introduction of lookalike segments. These segments allow advertisers to reach new audiences that closely resemble their existing customers, improving the chances of engagement and conversion. This advanced targeting helps brands extend their reach while maintaining high relevance, ensuring that ads are shown to users who are more likely to take action.

Seamless Performance and Transition Timeline

For advertisers currently using Video Action Campaigns, the shift to Demand Gen is designed to be seamless. According to Google, campaigns that rely solely on video assets within Demand Gen are expected to perform comparably to VAC, ensuring that advertisers will not see a decline in results. This means advertisers can begin transitioning to Demand Gen with confidence, knowing that their existing strategies will continue to deliver consistent performance.

The Transition Timeline: What to Expect

Now: Google recommends that advertisers begin exploring Demand Gen campaigns and familiarize themselves with the new features.

Early 2025: A migration tool will be introduced to allow manual upgrades from Video Action Campaigns to Demand Gen.

Demand Gen in March 2025: Google Ads will stop supporting the creation of new VACs.

Q2 2025: Automatic upgrades of all remaining Video Action Campaigns to Demand Gen will take place.

By getting ahead of the transition, advertisers can start reaping the benefits of Demand Gen, from its multi-format capabilities to its enhanced targeting features. The shift promises to provide better performance and more engagement opportunities, ensuring that advertisers are prepared for the future of digital marketing.

FAQs

What is Demand Gen, and how does it differ from Video Action Campaigns?

Demand Gen allows advertisers to combine video and image assets in a single campaign, offering greater creative flexibility and expanded reach across Google platforms like YouTube, Discover, and Gmail.

Will I still be able to create new Video Action Campaigns in 2025?

No, Google will stop the creation of new Video Action Campaigns in March 2025, with all remaining VACs being automatically upgraded to Demand Gen in Q2 2025.

How does Demand Gen improve targeting?

Demand Gen introduces lookalike segments, allowing advertisers to reach audiences similar to their current customers, improving engagement and conversion rates.

What kind of performance can I expect from Demand Gen?

Google data suggests that advertisers using Demand Gen see performance levels comparable to Video Action Campaigns, with the added benefit of multi-format capabilities and broader reach.

What is the benefit of combining video and image ads?

Combining video and image assets can increase conversions by 20% without increasing the cost per action, offering a more efficient way to engage users across platforms.