Google Ads is merging its Video Action Campaigns (VAC) into the more versatile Demand Gen campaigns starting Q2 2025. This shift aims to enhance advertisers’ ability to capture emerging demand and drive growth through a multi-format approach.
Why we care: Advertisers using VAC could see significant benefits from adopting Demand Generation campaigns. Combining video and image assets in Demand Generation can increase conversions by 20% at the same cost per action (CPA), compared to those relying solely on video, according to Internal Google data.
The details:
Expanded reach: Demand Gen campaigns will allow advertisers to engage with up to 3 billion monthly users across YouTube, Discover and Gmail.
Creative flexibility: Advertisers can use both video and image ads in a single campaign, with granular insights available to optimize creative strategies.
Enhanced audience targeting: Lookalike segments in Demand Gen help brands reach new audiences similar to their existing customer base.
Consistent performance: Advertisers using only video assets in Demand Gen have seen performance comparable to VAC, ensuring a smooth transition without compromising results.
What’s next. Here’s the transition timeline:
Now: Advertisers are advised to start running Demand Gen campaigns and explore its advanced features.
Early 2025: Google will launch a migration tool for manual upgrades from VAC to Demand Gen.
March 2025: Google Ads will disable creation of new VACs.
Q2 2025: Automatic upgrades of all remaining VACs to Demand Gen will occur.
Success stories: Google, as usual, highlighted a well-known brand – DoorDash, a U.S.-based food delivery service – to help make a case for Demand Gen. According to Google:
DoorDash reported a 15x higher conversion rate and a 50% more efficient CPA using Demand Gen compared to VAC.
Bottom line: This latest update represents a strategic move to meet evolving consumer expectations following ad format preferences updates in Demand Gen earlier this year. Testing Demand Gen and VAC now can give you a head start in leveraging these tools to drive stronger, more efficient results before your competition catches up.
