As announced, Google will phase out Video action campaigns (VAC) starting in March 2025, integrating its features into the Demand Gen offering. This update is part of Google’s broader initiative to streamline its advertising solutions. Demand Gen retains many of the benefits you’ve relied on with VAC, while introducing enhanced features – such as the ability to run both video and image ads in a single campaign, access to lookalike segments, maximize clicks bidding, creative preferences, and more.
If you’re wondering how this shift may affect your campaigns, we’re here to guide you through the transition.
Transitioning from one campaign type to another within Google Ads requires a clear understanding of their differences, strengths, and strategies. With Google planning to phase out Video action campaigns (VAC) by March 2025, marketers must prepare for this significant change to avoid disruptions and leverage the full potential of Demand Gen campaigns. This article will explore the key distinctions between VAC and Demand Gen campaigns, while also providing actionable steps to make a seamless and effective transition.
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What are Video action campaigns (VAC)?
Video action campaigns are designed to drive direct response actions, such as clicks, conversions, or leads, using video ad formats on YouTube and Google’s partner networks. They utilize skippable in-stream ads and video discovery ads to engage audiences with action-driven creatives.
Key features of VAC:
Goal-oriented: Optimized for actions like website visits, sign-ups, or purchases.
Simplified setup: Combines YouTube, Google Display Network, and Discover placements in one campaign.
Smart bidding: Uses automation to optimize for conversions or conversion value.
Creative requirements: Strong call-to-actions (CTAs) and engaging visuals to drive user action.
What are Demand Gen campaigns?
Demand Gen campaigns are the next evolution in reaching audiences across Google’s ecosystem, specifically designed to help brands build demand by targeting visually rich placements. This campaign type uses more personalized and engaging ad formats, such as carousels and videos, across YouTube, Gmail, and Google Discover.
Key features of Demand Gen campaigns:
Audience-driven: Focuses on creating demand by targeting high-intent audiences using first-party data, affinity groups, and behavioral insights.
Multi-format: Supports visually immersive formats like video carousels and responsive display ads.
Advanced reporting: Offers deeper insights into audience behavior and engagement across placements.
Optimized for awareness & consideration: Ideal for campaigns that require both engagement and eventual action.
Key differences between VAC and Demand Gen campaigns
Demand Gen campaigns build on the settings you’re already familiar with from Video Action Campaigns while introducing enhanced features. Additionally, they offer the advantage of improved performance by leveraging automated smart bidding to optimize across these expanded dimensions.
Why preparing for the transition is critical?
Google’s announcement to sunset Video action campaigns by March 2025 marks a significant shift in the advertising ecosystem. Without proper preparation, businesses risk losing the momentum and ROI they’ve built with VAC campaigns. Transitioning to Demand Gen is not just about switching campaign types; it’s about aligning your strategy with a more audience-centric, visually engaging approach.
The consequences of not preparing:
Disruption in performance: An unplanned shift can lead to a temporary decline in conversions and engagement.
Missed opportunities: Demand Gen offers new ad formats and placements that can enhance brand visibility and engagement, which unprepared advertisers may overlook.
Wasted budget: Inefficient targeting and unoptimized creatives during the transition can result in higher costs without delivering meaningful results.
By proactively planning your move to Demand Gen, you can mitigate these risks and unlock new opportunities for growth.
Here are a couple of practical examples of how to be ahead of the curve and prevent unnecessary ad spend waste.
As you are aware, for VAC campaigns you don’t have the ability to target specific placement types such as in-stream, in-feed, or Google video partners and you don’t have any control over which placement type will dominate in ad placement and ad spend which restrained the marketers and to focus the ad spend and the efforts towards the best-performing placements.
Here’s the insight on how you can prospect the best-performing placement (as that’s not visible on the campaign level).
You will find this placement report under “Insights and reports” > “When and where ads showed” > “Where ads showed” > “Add filter” > “Type” and you select the type of placement to prospect how your ads performed on each of the placement types.
That information means a lot when preparing the strategy to shift to Demand Gen campaigns. If your ads historically performed best on in-stream placement then your focus should be on focusing most of the ad spend towards your best-performing placement (in this example, in-stream one) and then expand from that point to testing other placement types as one of the biggest leverages for Demand Gen campaign is the ability to target the specific placement (in-stream, in-feed or shorts for video ads).
The second big upgrade compared to the VAC campaigns is the ability to test image ads within Demand Gen campaigns.
Demand Gen image ads offer a unique advantage over VAC campaigns by allowing advertisers to deliver visually immersive, high-quality static and dynamic image creatives across Google’s most engaging placements, including YouTube, Gmail, and Discover. Unlike VAC, which primarily focuses on video ads, Demand Gen campaigns enable brands to diversify their creative strategy and maximize reach through a blend of video and image formats in a single campaign.
This flexibility empowers advertisers to tell a cohesive story, cater to varying audience preferences, and achieve higher engagement rates. Additionally, Demand Gen’s enhanced targeting options, such as first-party audience data and lookalike segments, ensure that image ads reach the most relevant users, ultimately driving better performance at all stages of the customer journey.
How to transition from VAC to Demand Gen campaigns?
Transitioning from Video Action campaigns to Demand Gen requires strategic planning to ensure that performance is optimized and the new format aligns with your marketing goals.
1. Evaluate your campaign objectives
Focus on top-of-funnel metrics like clicks, engagements, and video views, as these campaigns are designed to create demand over time.
2. Audit your audience strategy
Leverage first-party data: Import CRM lists or remarketing audiences from Google Ads for Demand Gen campaigns.
Expand targeting: Explore Google’s affinity and custom intent audiences for broader reach and engagement.
3. Adapt your creative assets
Video carousels: Create multiple versions of ads that can work within the carousel format.
Immersive visuals: Invest in high-quality, visually appealing assets that capture attention across diverse placements like Gmail and Discover.
4. Monitor performance and optimize
Analyze metrics specific to Demand Gen (e.g., engagement rate, time spent on site).
Use A/B testing to refine creatives and audiences.
Best practices for a smooth transition
Run parallel campaigns: Run VAC and Demand Gen campaigns simultaneously to compare performance and identify trends. Launch Demand Gen campaigns as soon as possible as this property is similar to PMax campaigns when it comes to learning as they need more time to pick up and stabilize performance-wise but once they get traction they tend to work with more stability performance-wise than VAC campaigns.
Test small segments: Start with a small budget for Demand Gen to refine targeting and creatives.
Leverage insights: Use historical data from VAC campaigns to inform audience targeting and messaging for Demand Gen.
Iterate quickly: Monitor early results and make adjustments to creatives, placements, or bidding strategies as needed.
The shift from Video action campaigns to Demand Gen campaigns marks a new era for advertisers on Google. While VAC focuses on direct response and conversions, Demand Gen campaigns emphasize audience engagement, awareness, and building long-term demand. With the March 2025 deadline approaching, proactive preparation is essential. By understanding the differences, adapting your strategy, and following best practices, you can make the transition seamless and position your brand for success in the evolving advertising landscape.
Want to brainstorm with our team on new ways to scale your business with YouTube Ads (and other performance video platforms)?
Join us for a free YouTube ad brainstorming session:
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Bojan Bovan, Account Manager
With his extensive background in media buying for some of Inceptly's biggest clients, Bojan is known for his inquisitive mind and attention to detail. He keeps his hand on the pulse of new developments in direct-response advertising and enjoys finding ways to apply innovative strategies and techniques to keep our clients ahead of the curve.
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