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Introducing GenAI Contextual Segments for YouTube advertising

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Demand Gen: A Powerful Video-First Tool for Conversions

December 18, 2024

I want to share some interesting insights about Demand Gen campaigns and why it might be time to rethink where it sits in your brand strategy. If you’ve been putting Demand Gen in the “search” bucket, it might be worth reconsidering and thinking of it as a conversion-driving powerhouse for video. Here’s why.

Over 90% of delivery in Demand Gen campaigns running at Pixability is being served to video ads. In fact, it’s common across our clients: only a small fraction of impressions go to image ads, especially when advertisers have really strong video creative. That’s a clear indication that Demand Gen is built to prioritize video, particularly when your goal is to maximize conversions. The data speaks volumes—advertisers who run both video and image ads with Demand Gen see up to 20% more conversions per dollar than those who rely on image ads alone. 

So, why does this matter? Well, it helps clarify that Demand Gen is far more video-forward than search-forward. It’s not just about clicks; it’s about connecting your brand message to an audience in a way that resonates and leads to action. Video, as we know, is king when it comes to driving engagement, and Demand Gen seems to agree. When you’re focusing on driving conversions lower in the funnel, video ads are consistently getting the priority treatment, delivering results. We do recommend including image and video ads, but we think brands should think of this as a video-first ad format. 

And here’s where it gets even better—you have options to be intentional about your placements. If you want to keep the focus on the core YouTube inventory, you can deselect non-video formats and even opt out of Google Video Partners inventory. This allows you to keep your media spend locked into the video formats and environments where you know you’ll have the most impact.

If you’re a social video buyer, it’s time to consider the potential of Demand Gen to bring that same energy and expertise into the lower funnel. It’s not about replacing your existing strategy; it’s about enhancing it with YouTube’s unmatched reach and the effectiveness of video as a conversion driver. Moving your lower funnel budgets into YouTube through Demand Gen can create a more cohesive journey for your audience, where video leads the charge.

Let’s reframe how we think about Demand Gen—less like a search tool and more like a powerful video tool for conversions. This approach fits perfectly with what video teams do best—crafting stories that drive engagement and action.

With Demand Gen campaigns, you now have the ability to use channel-level inclusion lists, giving you more control over where your ads appear and ensuring they align with your brand’s objectives. This feature is currently in beta, allowing advertisers to test its capabilities while targeting specific YouTube channels for optimal relevance and performance. However, as it’s still in beta, keep in mind that functionality and availability may change as Google continues to develop and refine this feature based on feedback and results.

For example, consider the automotive industry. Brands in this space are often looking to create an emotional connection with potential buyers, showcasing features and lifestyle benefits that resonate visually. Demand Gen’s video-first approach is ideal for driving these connections, especially when the goal is to maximize conversions and move interested viewers down the funnel. By leveraging engaging video creative, automotive brands can use Demand Gen to effectively drive actions like dealership visits, test drive sign-ups, or even online vehicle purchases.

If you’re ready to explore Demand Gen in a video-first way, we’d love to help make that happen.