What is Demand Gen?
Demand Generation (Demand Gen) is a powerful way to reach new audiences and create demand for your product or service. In this article we explain what Demand Gen is exactly, when to use it, which KPIs matter and which settings you absolutely must not forget.
What is Demand Gen and why is it important?
Google Demand Generation is a marketing strategy aimed at creating awareness and interest among potential customers. Unlike lead generation (where you actively collect data), Demand Gen focuses on building demand and engagement within a relevant target audience.
The goal? To make sure the right people come into contact with your brand and feel sufficiently engaged to take a next step, such as visiting your website or interacting with your content.
Which accounts is Demand Gen suitable for?
Setting up a Demand Gen campaign is particularly recommended for:
- New accounts: If you don't have any campaigns running yet, Demand Gen can help build brand awareness and achieve the first engagement.
- Accounts with running campaigns: Do you already have Performance Max (PMax), Search or other lead generation campaigns running? Then Demand Gen can add an extra layer by reaching a broader audience and creating more top-of-funnel awareness.
- Lead generation and e-commerce: Both B2B and B2C companies can benefit from Demand Gen. For lead generation, it helps warm up the right audience before they convert. For e-commerce, it can contribute to increasing brand preference and repeat purchases.
Which KPIs are important in Demand Gen?
Because Demand Gen focuses on awareness and engagement, the KPIs differ from traditional lead generation campaigns. The most important KPIs are:
- Views & reach: How many people see your ads?
- Engagement rate: How much interaction (clicks, likes, shares) does your content get?
- CTR (Click-Through Rate): How often do people click through to your website or landing page?
- Conversion rate: How many people ultimately take a desired action? (e.g. sign up for a webinar or request a quote)
- Cost per engagement (CPE): What do you pay per interaction with your ad?
Important settings for a successful Demand Gen campaign
- Exclude branded traffic
A common mistake with Demand Gen campaigns is that they also include branded traffic. This means your budget is spent on people who are already familiar with your brand, while Demand Gen is meant to reach new audiences. So make sure you exclude branded search terms and retargeting lists.
- Decide which channels your campaign runs on
An important development within Demand Gen is that you now have insight into which channels your ads perform best on. Think of:
- YouTube (including YouTube Shorts)
- Gmail
- Google Discover
If your data shows that YouTube Shorts delivers the most engagement, you can adjust your budget and targeting to focus more strongly on it.
- Targeting and audience settings
A Demand Gen campaign stands or falls with the right targeting. Important settings are:
- Custom intent audiences: Based on search behaviour and interests.
- Lookalike audiences: Reach people who resemble your existing customers.
- Detailed demographics: Think of age, gender, location and device preferences.
- Creatives: Test and optimise
Because Demand Gen is all about visual content, it's crucial to test different formats and messages:
- Video ads (YouTube)
- Images and carousels (Google Discover and Gmail)
- Short videos for YouTube Shorts
- Use A/B testing to determine which visuals and messages perform best.
A well-structured Demand Gen campaign can be a powerful tool to grow your brand and reach new audiences. By excluding branded traffic, making smart use of channel insights and continuously optimising your targeting and creatives, you make sure your Demand Gen campaign performs at its best.
Want to use Demand Gen for your business? Then make sure you track the right KPIs and experiment with different channels and content types to achieve the best results. Still need some help? Get in touch with us.