Paid Media News & Opinion #113

Significant updates are coming to Demand Gen campaigns on Google Ads

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> What’s happening

Google Ads are bringing significant improvements to Demand Gen campaigns, with new inventory controls, creative options, seamless shopping ad experiences and more.

From March, advertisers will be able to choose where ads appear, with options for YouTube (in-feed, in-stream, Shorts), Discover and Gmail. Additionally, Google’s Display Network will be available, providing access to 3M+ websites and apps.

Ecommerce advertisers with product feeds will benefit from a new seamless experience for ads, where shoppers can instantly access full product details directly from ads, navigating through pages and more.

For Shorts, vertical (9:16) images will be shown here, offering a full-screen experience from late February. Plus a new tool to shorten videos so they are more optimised for Shorts.

Finally, view-through conversions for Demand Gen campaigns will be available as a column in reporting.

Ginny Marvin, Ads Product Liaison for Google Ads, talked about it first on LinkedIn here.

> Why we care

Demand Gen is fast becoming a powerful and reliable channel for engaging, multi-format ads that drive website traffic and conversions. Google is clearly focusing resources here as it starts to replace and consolidate other channels, such as Video Action campaigns, and perhaps more in future, such as Display.

Giving advertisers more control over where ads show is important if they are introducing Display, as Google’s Display Network is often ridiculed for low-quality traffic and spam websites.

Google claims that this campaign type delivers 58% higher ROAS than Video Action Campaigns, with brands such as M&S seeing an impressive 66% lower CPA in testing. With new features and optimisations coming thick and fast, it’s never been a better time to utilise Demand Gen campaigns.

Google Ads introduces simplified, codeless form tracking in GTM

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> What’s happening

Google Ads has launched a new form tracking feature in Tag Manager, allowing for codeless event creation to track lead form submissions.

Advertisers can now configure conversion tracking effortlessly through an intuitive wizard-style interface, removing the need for manual coding.

> Why we care

This update dramatically simplifies conversion tracking by eliminating technical complexities and the need for coding or advanced Tag Manager knowledge. With a user-friendly, wizard-style interface and codeless event detection, this streamlined method could save marketers valuable time.

It improves accessibility for those with limited technical expertise, and reduces barriers to effective conversion tracking which is key to unlocking ad performance potential.

Google tests AI-generated images for Shopping Ads

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> What’s happening

Google is introducing a limited test that uses AI to automatically generate background images for product listings in Shopping Ads.

The AI system will create contextual backgrounds for existing product images while ensuring the product itself remains unaltered.

Before going live, all AI-generated images will require human review and approval. Advertisers will have the option to opt out of the test if they prefer full control over their product imagery.

> Why we care

This update has the potential to streamline ecommerce advertising by enhancing product presentation without additional creative costs. Since visual appeal can significantly impact consumer purchasing decisions, AI-generated backgrounds could improve conversion rates. However, concerns remain about whether AI can accurately reflect brand guidelines, and some advertisers - particularly those cautious about protecting their brand identity - might be reluctant to relinquish creative control.

This initiative aligns with Google’s strategy of further integrating AI across its advertising system. It could be particularly beneficial for smaller retailers who lack access to professional photography. The key question moving forward is how consumers will respond to AI-enhanced product images and whether this innovation will lead to measurable performance improvements for Shopping Ads.

What else we've been talking about:

• Google Analytics simplifies cost data import

• Google refines ad quality systems to improve user navigation

• Updates to the Dating and Companionship Ads policy for Google Ads

• How to use Video View campaigns effectively in Google Ads

• Adaptive audio in Google Meet