Demand Gen on YouTube: when demand generation becomes performance

For years, brands have invested millions in capturing attention… and only that: attention.
The real challenge has always been turning that attention into action, especially in environments where ad saturation is brutal and users scroll faster than any algorithm can react.

YouTube, which has historically been a branding territory, is undergoing a radical transformation.
Video consumption has fragmented across YouTube, Shorts, TikTok, Reels, and CTV, and user behavior has become unpredictable.
It’s no longer enough to excite, now you have to activate.

This is where Demand Gen comes into play, Google Ads’ new generation of campaigns that connect inspiration with real conversion.
A format designed to generate demand even before the search happens, leveraging the power of AI, predictive targeting, and the visual environments where people actually spend their time: YouTube, Discover, and Gmail.

The shift is no small thing.
With Demand Gen, brands can launch visual campaigns (video, carousel, image) that combine massive reach with conversion-oriented optimization.
And the best part: everything is managed from a single environment, powered by machine learning and first-party data.

In other words:
YouTube is no longer just a showcase to build brand awareness; it’s a measurable and scalable demand generation channel capable of driving real business results.

TABLE OF CONTENTS

• What Demand Gen campaigns are (and what makes them different)

• How Demand Gen Campaigns work on YouTube

• Why YouTube is the heart of Demand Gen

• AI as the engine of demand generation
• Real example: Stradivarius and the power of short-form video
• How to build an effective Demand Gen strategy on YouTube

What Demand Gen campaigns are (and what makes them different)

Demand Gen Campaigns or Demand Generation are the natural evolution of Discovery campaigns.
Their goal is simple: create interest, increase consideration, and activate audiences with high purchase intent — even before they search for your product.

Unlike traditional video or direct-action campaigns (such as Video Action), Demand Gen combines artificial intelligence + dynamic creativity to decide:

• Which ad to show.
• Who to show it to.
• When and where to show it (YouTube, Shorts, Discover, or Gmail).
  
  

The result is a campaign that integrates branding and performance in a single flow, automatically optimizing toward CPA, clicks, or conversions.

(Source: Google)

How Demand Gen Campaigns work on YouTube

When you activate a Demand Gen campaign, you enter Google’s most advanced AI-driven advertising ecosystem.
The system analyzes thousands of real-time signals (browsing history, video behavior, affinities, device context) and predicts which type of content is most likely to drive action.

Here’s how it’s structured:

1. Predictive audiences:
   Google combines your first-party data (clients, leads, website visitors) with intent signals to build similar audiences (lookalikes).
   This expands your reach without losing precision or relevance.
   
   
2. Adaptive creatives:
   You upload videos, images, titles, and descriptions.
   The system automatically mixes and tests them to identify which combinations deliver the highest engagement or conversions.
   In short: AI acts as your media buyer.
   
   
3. Cross-channel optimization:
   Your ads can appear on YouTube (In-Stream, In-Feed, or Shorts), Discover, or Gmail — depending on where each user is most likely to act.
   
4. Smart bidding:
   Demand Gen campaigns optimize for CPA, conversions, or qualified traffic, learning from each interaction to improve long-term performance.
   
   

Why YouTube is the heart of Demand Gen

Within the Demand Gen ecosystem, YouTube is the core of the strategy.
With over 2 billion active monthly users and growing video consumption (especially in Shorts and Connected TV), it’s the perfect environment to spark desire and drive intent.

Its formats allow you to cover all funnel stages:

Moreover, Demand Gen lets you combine these formats with product carousels or static images, making it the perfect hybrid between emotional branding and tactical performance.

AI as the engine of demand generation

The true value of Demand Gen lies in how AI transforms data into decisions.
Unlike traditional manual targeting, AI analyzes thousands of real-time factors: the type of content a user watches, purchase history, time of day, device, likelihood of interaction, or the kind of message that resonates best.

For example:

• If it detects that a user has been watching videos about sustainable fashion, it will prioritize ads from brands with eco-friendly storytelling.
• If it identifies interest in tech content, it will display videos with product demos or reviews.

Everything happens automatically and at scale.

This makes Demand Gen an ideal tool to build interest without wasting investment, leveraging contextual signals and continuous learning.

Real example: Stradivarius and the power of short-form video

To understand the potential of this strategy, let’s look at a recent example.
Stradivarius, a global young fashion brand, worked with Google and Adsmurai on a YouTube Shorts activation aimed at inspiring new audiences and boosting the visibility of its brand storytelling.

Key results:

• +22% view rate above the retail industry benchmark.
• 27% of users watched the full video, despite being a skippable format.
• -39% CPV compared to industry average.

The takeaway is clear: when you combine relevant messaging with native formats and AI optimization, YouTube becomes a true demand-generation engine.

How to build an effective Demand Gen strategy on YouTube

1. Define an intermediate objective:
   Don’t aim for immediate sales; focus on generating interest and qualified traffic.
2. Combine formats and lengths:
   Use short videos (Shorts) to grab attention and longer ones (In-Stream) to tell your story.
3. Activate your first-party data:
   Import customer or website visitor lists and let AI find similar audiences.
4. Allow time for learning:
   Google needs time to calibrate delivery. Avoid making changes before the first 14 days.
5. Dynamically optimize creatives:
   Adjust titles, CTAs, and thumbnails based on engagement results.

6. Measure impact beyond the click:

   Use Brand Lift and Conversion Lift to assess the real impact on awareness and assisted conversions.

⚠️ Common mistakes that hurt performance

• Expecting immediate sales (without nurturing the consideration phase).
• Using TV ads without adapting to vertical or mobile formats.
• Ignoring audio or subtitles.
• Not testing different creative versions or CTAs.
• Pausing campaigns before completing the learning phase.
  
  

Demand Gen campaigns represent a paradigm shift in YouTube advertising:
it’s no longer about shouting louder, but about showing up when users are most ready to listen.

With AI, first-party data, and native formats, brands can connect with their audience before they even search — generating real, measurable demand.

And as cases like Stradivarius demonstrate, when creativity and technology work together, YouTube stops being just a branding channel and becomes a true performance engine.