If Search and Display Had a Baby: Why Demand Gen is the New Hybrid You Actually Want

A practical breakdown of Google's Demand Gen campaigns vs. Paid Search and Display, covering placements, targeting, creatives, and when to use each in a hotel marketing mix.

If Search and Display Had a Baby: Why Demand Gen is the New Hybrid You Actually Want

Photo by Cogwheel Marketing & Analytics

What are Demand Gen Campaigns?

Google's new Demand Gen campaign is designed to capture engagement and actions across YouTube, including Shorts, Discover, Gmail, and Google Display Network websites. They are ideal for advertisers who want to serve visually appealing, multi-format ads through Google channels.

Google shares that the benefits of running Demand Gen ads are reaching up to 3 billion monthly active Google users, placement in front of 50+ billion daily views on YouTube Shorts, and the ability to optimize for website traffic, convert high-value users, and bid against efficient metrics.

While Performance Max campaigns are designed to maximize performance across all of Google's channels and surfaces, Demand Gen generates demand and delivers results on Google's most immersive, visual touchpoints such as Discover, Gmail, Google Display Network, YouTube In-Feed, YouTube In-Stream, and YouTube Shorts.

How Is Demand Gen Different from Paid Search Campaigns?

Google paid search campaigns are fundamental for driving website traffic and conversions with targeted keywords and text ads, while Demand Gen campaigns use a mix of creative assets (videos and/or images) alongside audience targeting. Also, paid search campaigns capture demand that already exists, while Demand Gen creates interest before a search even happens.

Key differences are intent, placements, triggers, creatives, and costs:

  Paid Search (Search Ads) Demand Gen Campaigns
Intent Searching for something specific, i.e., "hotels in downtown Nashville" Scrolling through feeds for entertainment or information
Placements Google Search results, Maps, and Search Partners YouTube (Shorts, In-stream), Discover, Gmail, & Google Display Network
Triggers Keywords Audience Signals
Creatives Text (headlines and descriptions) Images and/or videos
Costs CPCs can range from $1–$6+, depending on competition and volume of searches CPCs are lower than Search Ads ($0.20–$1)

A new feature for Demand Gen triggers in 2026 is Lookalike Segments, which allows advertisers to find new users who share characteristics with current customers.

How Is Demand Gen Different from Google Display Network?

With Google Display Network, you can reach potential customers across 3 million sites and apps with creatives (either animated ads or responsive display ads). With Demand Gen campaigns, you can drive demand and conversions on YouTube, Display, and more with image and video ads.

Key differences are goals, placements, and creatives:

  Google Display Network (GDN) Demand Gen Campaigns
Goals Awareness & Retargeting Demand Creation & Conversions
Placements 3M+ third-party websites, apps, & YouTube YouTube (Shorts, In-stream), Discover, Gmail, & Google Display Network
Creative Formats Static banners, HTML5 & Responsive display ads Videos (4 different formats), Carousel ads, & Single Image ads

Targeting is also different between GDN and Demand Gen: GDN heavily utilises contextual targeting, whereas Demand Gen uses interest-based algorithms.

Which Campaign Is Best to Use?

There isn't one solution.

Paid Search Ads help to drive site traffic in front of people who are actively searching Google for products or services you offer. Search Ads are meant for the mid-funnel stage of the booking journey, so think of them as the parents in a family tree.

Display Ads offer the lowest possible cost per thousand impressions (CPM) and are the best option for retargeting. They are also the best option if you have a specific list of websites where you want your ads to appear. Display Ads are used to target the top of the funnel, which makes them like the family tree itself.

Demand Gen campaigns are best used when you have highly appealing visual assets and want to drive action (clicks/conversions) from users as they are browsing their favourite feeds. They are the baby — a blend of both.

Just as everyone in the family plays a part, we recommend a holistic approach and combining different campaign types as they fit your marketing budget.

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Demand Generation Google Ads Commerce Media Network Google Display Network

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