Most of you have probably heard of Google phasing out Video Action Campaigns (VAC) by Q2 2025, replacing them with Demand Gen, promising improved performance and multi-format capabilities for advertisers.
This update aims to enhance ad performance by merging video and image ads, enabling advertisers to reach more users across YouTube, Discover, and Gmail.
This expanded reach will give brands the creative flexibility to optimize different assets for different audiences and drive growth more effectively, whether that be through conversions, leads, or traffic.
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Biggest changes
- Expanded reach: The new format will extend ad placements beyond YouTube to include Discover and Gmail, which will allow marketers to engage with up to 3 billion users monthly across channels
- Multi-format approach: Demand Gen campaigns will allow advertisers to use video and image ads within a single campaign.
- Audience targeting: New features include lookalike segments to reach audiences similar to existing customers.
Technical specifications
Demand Gen campaigns support various asset types, including images in landscape, portrait, and square formats, as well as videos in horizontal, vertical, and square format. Advertisers will need to prepare headlines, descriptions, final URLs, business names, and call-to-action text for their campaigns.
Bidding options
The new format will continue to offer advanced bidding strategies, including:
- Maximize conversions: Automatically sets bids to maximize conversions within the campaign budget.
- Target CPA (Cost Per Acquisition): Allows advertisers to set an average target cost per conversion.
- Maximize conversion value: Optimizes for the highest total conversion value within a specified budget.
- Target ROAS (Return on Ad Spend): Enables advertisers to set a specific return on ad spend goal based on sales revenue.
Inventory
Ads created through Demand Gen line items will be eligible to appear across various placements, including:
YouTube in-stream and in-feed ads
YouTube Shorts
YouTube search results
Google video partners
Conversion tracking
Demand Gen supports various conversion tracking methods, including website conversions, mobile app conversions, and offline conversions. The system will use advanced machine learning to optimize for these conversions, tailoring bids for each auction.
Timeline
When it comes to the timeline you should start with the transition today and start with testing.
You can expect similar performance as on your VAC if you are using video assets only.
Google is preparing a manual upgrade tool available at the beginning of 2025, but for the full feature access, it is recommended to start with a new campaign.
VAC campaigns will no longer be an option to create from March 2025 and after that, in Q2 all remaining VAC campaigns will be upgraded to Demand Gen.
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Jovan Simic, Account Manager
Jovan Simic is an experienced media buyer responsible for over $30M in profitable ad spend. At Inceptly, Jovan has collaborated with prominent brands, including Advanced Bionutritionals, Amplify Solar, Fittrack, John Crestani, and The Social Man, demonstrating his versatility and expertise. His deep understanding of media buying and consistent track record of success make him an invaluable asset to the industry.
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