Google has rolled out its second "Demand Gen" update, providing advertisers with new opportunities to reach their target audiences more effectively. This update includes significant enhancements for businesses looking to optimize their online advertising campaigns.
New targeting options and AI features enhance Google ads
The update introduces three new customer acquisition goals for YouTube campaigns. With the "New Customer Value Mode," advertisers can prioritize bidding on new customers while retaining existing contacts. The "High Value New Customer Mode" sets different bidding priorities for high-quality prospects, regular new customers, and existing customers. Finally, "New Customer Only Mode" optimizes solely for new customers.
Google reports that advertisers using the "New Customer Only Mode" reach an average of 11.5% more new customers with 3% lower acquisition costs. These results demonstrate the practical value of more targeted targeting. The update also includes extensive deep linking capabilities for iOS apps through Web to App Connect. This allows businesses to direct traffic more effectively to their applications, which can enhance conversion and engagement in their own channels.
Automation and product integration facilitate campaign management.
An important addition is the AI-generated video ad feature. This tool uses provided materials to create professional videos in various formats, allowing companies to utilize YouTube video ads without their own video production.
Google has also updated Target CPC bidding, enabling advertisers to compare performance across different ad platforms with identical settings. This simplifies optimization across multiple channels.
For e-commerce businesses, Google is introducing product views within demand generation campaigns. When connected to Google Merchant Center, campaigns can automatically generate visual product materials for more appealing promotions.
Practical steps for implementation
Companies can immediately implement these new features by checking their existing Google Ads accounts for available updates. The timing is favorable for retail businesses preparing for the important year-end season.
The various customer acquisition modes offer flexibility for different business objectives, from growth to retention. The AI video feature democratizes video advertising for smaller companies without large production budgets.