How Google’s Demand Gen Upgrade is Changing Video Ads

Starting this July, Google will roll out a major update across its ad platform: all existing Video Action Campaigns (VACs) will be automatically upgraded to Demand Gen campaigns. If you’ve been using VACs to drive conversions through YouTube, this change is more than just a tweak – it’s a fundamental shift in how brands can show up and connect with audiences across Google’s vast network.

Let’s break it down and explore what this really means – and how you can get ahead of the curve.

From YouTube-Only to a Full-Funnel Playground

Traditionally, Video Action Campaigns have helped brands drive action on YouTube. But now, Google’s Demand Gen opens the door to far more than video views. Your ads can appear across:

YouTube – including Shorts, In-Stream videos, Home, and Watch Next feeds.
Discover Feed – where users scroll through tailored content based on their interests.
Gmail (Promotions and Social tabs) – yes, right inside people’s inboxes.
Google Display Network (GDN) – reaching millions of websites and apps.

In short, this upgrade allows you to meet your audience wherever they are, not just when they’re actively searching. It’s a big step towards delivering ad experiences that feel more like content and less like ads – visually rich, tailored, and spread across multiple channels.

It’s Not Just About Video Anymore

One of the most exciting things about Demand Gen is the creative flexibility. It’s no longer just about videos – now you can mix and match:

Videos, of course – with better tools to create short versions and optimise them.
Images – in square, horizontal, and vertical formats (ideal for Shorts).
Carousels – great for showing off multiple products or features.
Dynamic product ads – synced with your product feed, showing real-time availability and pricing.

This means you can tell your brand story more vividly, in more ways, and across more moments. Google’s AI then helps pick the best creative combinations for each user – automatically.

Smarter Targeting, Less Guesswork

Demand Gen is powered by Google’s machine learning, and that means a lot of the heavy lifting is done for you. Some of the standout features include:

Smart Bidding – options like Target CPA or Maximise Conversions help you hit your performance goals.
Lookalike audiences – finding new users who behave like your best customers.
Audience insights – using signals like in-market behaviours and interests to refine your targeting.
Auto-optimisation – Google’s AI continually tweaks things in the background to improve results.

This frees you up to focus on what really matters: crafting creative that connects.

How to Prepare for the July Rollout

Although the upgrade will happen automatically, those who prepare early will have a clear advantage. Here’s a quick checklist:

1. Learn the ropes – Demand Gen is a different beast from VACs. Take time to understand its full capabilities. Google’s Ads Help Centre is a good place to start.
2. Review your current VACs – Look at what’s working and which assets are top performers.
3. Use Google’s migration tool – It helps carry over your settings and learnings, so you don’t have to start from scratch.
4. Test new formats now – Try image and carousel ads. Explore vertical videos that are ideal for Shorts.)
5. Update your audience strategy – Take advantage of Lookalike segments and test different audience combinations.
6. Connect your product feed – For e-commerce brands, linking to Google Merchant Centre allows dynamic product ads, which are great for driving direct sales.
7. Keep testing and optimising – As always, stay curious. Analyse, test creatives, and tweak your approach based on what works.

The Future Is Visual, Integrated, and AI-Led

This shift from VACs to Demand Gen isn’t just a product update – it’s a clear sign of where Google thinks the future of performance marketing is headed. More visual. More social-like. More intelligent.

Brands that embrace this change early will benefit from broader reach, richer creative formats, and smarter targeting. So, if you’re looking to stay competitive in today’s attention economy, now’s the time to experiment, adapt, and evolve your strategy.

Ready to Make the Most of Demand Gen?

Whether you’re already running VACs or starting fresh, we can help you unlock the full potential of Google’s latest campaign type. Let’s chat about how to future-proof your video strategy and drive results that matter. Get in touch today.

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