Google Introduces New AI-Powered Tool to Enhance Social Advertising Strategies Across Its Platforms


Google has launched the Demand Gen campaign tool, powered by artificial intelligence, to aid marketers in creating more engaging content and achieving more precise audience targeting in social advertising. This tool, labeled as the “next generation of Discovery campaigns,” enables advertisers to integrate various types of videos, including YouTube videos and Shorts, into their content. Furthermore, Demand Gen introduces advanced audience targeting capabilities such as lookalike audiences and action-based bidding strategies.

The primary objective of this new product is to assist advertisers in expanding their social advertising strategies onto Google’s platforms, with a specific focus on display and YouTube.

Key Takeaways

  • Google has globally released its Demand Gen campaign tool, which employs artificial intelligence to enhance content engagement and audience targeting in social advertising. The tool has been in beta testing since June.
  • Referred to as the “next generation of Discovery campaigns,” Demand Gen allows advertisers to incorporate videos, including YouTube videos and Shorts, in their content.
  • It also introduces audience targeting features, such as lookalike audiences and action-based bidding strategies.
  • Google’s new tool aims to help advertisers extend their social advertising strategies onto the company’s platforms, particularly emphasizing display and YouTube.

Why It Matters

While social advertising and retail media have garnered significant attention, Google remains a dominant force in discovery and engagement due to its robust search and YouTube capabilities. According to Google, users are 61% more likely to use YouTube or Google for researching products and brands compared to other social platforms. Additionally, they are two-thirds more likely to make a purchase after viewing an ad on YouTube. Google asserts that YouTube is more than twice as likely to be the channel of choice for consumers when catching up on content from their favorite creators.

As consumer behavior shifts in how they discover products, decisions are now made throughout the entire purchasing process. This necessitates that social advertisers adapt their strategies to remain relevant in this evolving media landscape.

Google Ads was developed to enable advertisers to apply their social media strategies to Google’s platforms, leveraging short-form videos, product images, and visual assets to create YouTube and Google Discovery digital ads. For example, retailers can combine images and text from catalogs to generate product feeds that align with the interests and intentions of shoppers.

Advertisers using the Demand Gen campaign tool will have access to Google’s suite of targeting tools, including the creation of lookalike audiences and the implementation of action-based bidding strategies, aimed at optimizing clicks, conversions, or website actions. This tool also allows advertisers to evaluate the performance of their ads by format, helping them identify which creative approaches are most effective.

During the beta testing phase, Naranja X, an Argentine fintech company, achieved remarkable results with Demand Gen, including a three-fold increase in click-through rates and a 61% reduction in cost per action. Samsung Germany also significantly boosted site traffic and achieved a 400% increase in click-through rates by optimizing its bidding strategy, according to Google.


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