Unlocking the Power of Demand Gen Google Ads: A Game-Changer for Australian Businesses

As the digital advertising landscape continues to evolve, Australian businesses are always on the lookout for innovative ways to reach new customers and spark interest in their offerings. Enter Demand Gen Google Ads, a powerful new campaign type from Google that’s shaking up how businesses generate demand and connect with audiences. Launched as an upgrade to the now-retired Discovery Ads, Demand Gen campaigns are designed to captivate users across Google’s most engaging platforms—YouTube, Gmail, and Discover—using visually rich ads and advanced AI-driven targeting. For Australian Google Ads agencies and their clients, this represents an exciting opportunity to stay ahead of the curve.

In this blog, we’ll dive into what Demand Gen campaigns are, how they differ from their predecessors, and why they’re a must-have in your 2025 marketing toolkit. Plus, we’ll share actionable tips tailored for Australian businesses to make the most of Demand Gen Google Ads.

What Are Demand Gen Google Ads?

At their core, Demand Gen Google Ads are all about generating interest and demand before a potential customer even begins their search journey. Unlike traditional search campaigns that target users with clear intent, Demand Gen focuses on the top and middle of the purchase funnel—nurturing prospects who might not yet know they need your product or service.

These campaigns leverage Google’s vast ecosystem of visual platforms, including:

• YouTube (In-Stream, Shorts, and Feed)
• Google Discover (a personalised content feed with over 3 billion monthly users globally)
• Gmail (targeting inboxes with eye-catching ads)

What sets Demand Gen apart is its ability to blend multiple creative assets—images, videos, carousels, headlines, and descriptions—into a single campaign. Powered by Google’s AI, these assets are mixed and matched to deliver the right message to the right user at the right time. For Australian businesses, this means reaching audiences scrolling YouTube Shorts in Sydney, checking emails in Melbourne, or browsing Discover in Perth—all with ads that feel native and engaging.

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Why Demand Gen Is Replacing Discovery Ads

If you’ve been running Google Discovery Ads, you might be wondering why Google is phasing them out in favour of Demand Gen Google Ads. The short answer? Demand Gen takes everything Discovery did well and supercharges it with expanded reach, smarter tools, and a social media-inspired approach. Here’s how they differ:

1. Broader Reach Across YouTube
   While Discovery Ads tapped into YouTube’s homepage and feed, Demand Gen goes further by including YouTube In-Stream and Shorts—formats that resonate with Australia’s growing appetite for short-form video content (think TikTok-style engagement).
2. More Creative Flexibility
   Demand Gen supports up to five videos alongside images, carousels, and text assets. This versatility lets Aussie brands showcase their products in dynamic ways, from quick product demos to storytelling ads.
3. Enhanced Audience Targeting
   Say goodbye to Similar Audiences and hello to Lookalike Segments. Using your first-party data (like customer lists or website visitors), Demand Gen creates lookalike audiences with three levels of precision—narrow (2.5%), balanced (5%), or broad (10%). This is a game-changer for Australian retailers or service providers looking to scale their reach.
4. New Bidding Options
   Alongside smart bidding strategies like “maximise conversions” or “maximise conversion value,” Demand Gen introduces “maximise clicks.” This is perfect for businesses driving traffic to websites or promoting offline sales—a common goal for Australian SMEs.
5. Better Insights
   With reports like Brand Lift, Search Lift, and Conversion Lift, you can measure how Demand Gen Google Ads influence brand awareness and downstream conversions—crucial for justifying ad spend in a competitive market.

Google began rolling out Demand Gen in late 2023, and as of early 2025, all Discovery campaigns have been fully upgraded. For Australian agencies, this transition is an opportunity to rethink how we approach demand generation.

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Why Demand Gen Matters for Australian Businesses

Australia’s digital audience is unique—tech-savvy, mobile-first, and increasingly drawn to video content. With over 20 million Australians active on YouTube monthly and Gmail a staple for both personal and business use, Demand Gen Google Ads tap into platforms where your audience is already engaged. Add Google Discover’s personalised feed into the mix, and you’ve got a recipe for reaching untapped markets.

For local businesses—whether you’re a Brisbane e-commerce store, a Perth tradie service, or a Sydney fashion label—Demand Gen offers:

• Cost-Effective Reach: Early adopters often enjoy lower costs per impression as competition ramps up.
• Visual Storytelling: Showcase your brand’s personality with videos and carousels that stop the scroll.
• First-Party Focus: With third-party cookies phasing out in 2024, Demand Gen’s reliance on first-party data aligns with privacy trends—a big win for Aussie businesses adapting to new regulations.

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How to Succeed with Demand Gen Google Ads: Tips for Australian Agencies

Ready to harness Demand Gen for your clients? Here are five Aussie-tailored best practices to ensure your campaigns hit the mark:

1. Leverage Local Video Trends
   Australians love video—YouTube Shorts alone has exploded in popularity. Create short, punchy ads (under 15 seconds) that highlight your client’s unique value proposition. For example, a Gold Coast surf shop could showcase quick clips of boards in action, paired with a “Shop Now” call-to-action.
2. Build Robust First-Party Data
   Lookalike Segments rely on your client’s first-party data, like customer emails or website interactions. Encourage clients to grow their lists—offer a discount code for sign-ups or run a lead gen campaign first. In Australia, where audiences can be smaller and more spread out, a list of 1,000+ users is the minimum to unlock this feature.
3. Test Creative Variations
   Use Demand Gen’s A/B testing tools to experiment with different videos, images, and headlines. For an Aussie winery, test a serene vineyard video against a lively tasting event carousel to see what resonates with their audience.
4. Start with a Smart Budget
   Google recommends a daily budget of 15x your target CPA for optimal learning. If a Melbourne café’s target CPA is $10, aim for $150/day. For smaller budgets, “maximise clicks” can still drive traffic while you gather data.
5. Optimise for Mid-Funnel Wins
   Demand Gen isn’t about instant sales—it’s about planting seeds. Focus on lightweight conversions like “add to cart” or “sign up” to feed Google’s AI valuable signals. For example, a Darwin fitness studio could target sign-ups for a free trial class.

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Getting Started with Demand Gen in 2025

If you’re an Australian Google Ads agency, now’s the time to act. Demand Gen Google Ads are live and accessible to all advertisers as of 2025, with a seamless upgrade path for any lingering Discovery campaigns. Historical data and learnings carry over, so your clients won’t miss a beat.

To kick things off:

• Audit Existing Campaigns: Review your Discovery Ads performance to identify top-performing assets and audiences.
• Refresh Creatives: Repurpose high-quality social media content or invest in new video assets tailored for YouTube and Discover.
• Partner with Experts: If the transition feels overwhelming, lean on your agency’s expertise to guide clients through setup and optimisation.

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The Future of Demand Gen in Australia

As Google continues to blend AI, first-party data, and social-inspired features into its ad platform, Demand Gen Google Ads signal a shift toward more immersive, user-centric advertising. For Australian businesses, this is a chance to break through the noise, connect with new audiences, and drive demand in ways that search alone can’t achieve.

Whether you’re a small business testing the waters or an agency managing multi-client portfolios, Demand Gen is more than just an upgrade—it’s a strategic tool to fuel growth in 2025 and beyond. Ready to get started? Contact our team at [Your Agency Name] to see how Demand Gen can transform your Google Ads strategy today.

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