Google’s Demand Gen appears to be going after brand marketers with broader awareness and consideration goals, such as Mondelēz. During an earnings call last week, Google’s Chief Business Officer Philipp Schindler said that Samsung and Toyota tested Demand Gen in recent months. The AI campaigns were “designed for the needs of today’s social marketers to engage people as they stream, scroll and connect,” Schindler said. “It combines video and image ads in one campaign, with access to 3 billion users across YouTube and Google.”
"Performance Max is a goals-based campaign and can be used as a complement to Search. Together, Search and Performance Max help advertisers maximize conversions across all of Google,” a Google spokesperson said in a statement to Ad Age. “Implementing Demand Gen then helps advertisers broaden their funnel strategy and drive purchase consideration."
“When it comes to Demand Gen that is much more an awareness and consideration type of play similar to how it works in social,” Kinesso’s Spruyt said.
Demand Gen will give brand marketers a way to explore the new AI landscape, Halvorson said. The reason that’s a big deal is because it reframes the way brand marketers have traditionally thought about advertising, he said. Brands must now evolve their playbooks to work similarly to DTC brands and retailers, Halvorson said. The AI can turn a consumer package good brand into more of a DTC-style marketer. Brands can upload their product images, ad creative and marketing copy into AI-run libraries, so that the machine can experiment with campaigns. AI mixes and matches the creative assets, tests against a variety of audiences and learns what works.
“This is how brand marketers can perfect performance marketing,” Halvorson said.
Google’s Demand Gen gives some levers to brands and agencies by letting them set ad targeting parameters, according to Jim Tomanchek, VP of global partnerships at Sprinklr, a customer experience management platform that works with brands to plan paid and organic social media campaigns.
Earlier this month, Sprinklr announced it would support Demand Gen ad campaigns, the first paid Google ad format that the platform offered. Sprinklr typically works with brands on paid TikTok, Instagram and other social media ads. The inclusion of Sprinklr as an ad partner is another indication that Google positioned Demand Gen as a social ad product.
“Google wanted to get in and have an offering specifically for a lot of the buyers that buy primarily on social,” Tomanchek said.