• Inceptly
  • Posts
  • 🧠YouTube ads phasing out Demand Gen to take them over in 2025

🧠YouTube ads phasing out Demand Gen to take them over in 2025

Most of you have probably heard of Google phasing out Video Action Campaigns (VAC) by Q2 2025, replacing them with Demand Gen, promising improved performance and multi-format capabilities for advertisers.

This update aims to enhance ad performance by merging video and image ads, enabling advertisers to reach more users across YouTube, Discover, and Gmail.

Author:
Jovan Simic,
Account Manager

This expanded reach will give brands the creative flexibility to optimize different assets for different audiences and drive growth more effectively, whether that be through conversions, leads, or traffic.

Curious if YouTube Ads can boost your business with zero upfront risk?

Try YouTube Ads risk-free. You only pay for results!

 Limited spots available. Reserve yours now!

Biggest changes

  • Expanded reach: The new format will extend ad placements beyond YouTube to include Discover and Gmail, which will allow marketers to engage with up to 3 billion users monthly across channels

  • Multi-format approach: Demand Gen campaigns will allow advertisers to use video and image ads within a single campaign.

  • Audience targeting: New features include lookalike segments to reach audiences similar to existing customers.

Technical specifications

Demand Gen campaigns support various asset types, including images in landscape, portrait, and square formats, as well as videos in horizontal, vertical, and square format. Advertisers will need to prepare headlines, descriptions, final URLs, business names, and call-to-action text for their campaigns.

Bidding options

The new format will continue to offer advanced bidding strategies, including:

  • Maximize conversions: Automatically sets bids to maximize conversions within the campaign budget.

  • Target CPA (Cost Per Acquisition): Allows advertisers to set an average target cost per conversion.

  • Maximize conversion value: Optimizes for the highest total conversion value within a specified budget.

  • Target ROAS (Return on Ad Spend): Enables advertisers to set a specific return on ad spend goal based on sales revenue.

Inventory

Ads created through Demand Gen line items will be eligible to appear across various placements, including:

  • YouTube in-stream and in-feed ads

  • YouTube Shorts

  • YouTube search results

  • Google video partners

Conversion tracking

Demand Gen supports various conversion tracking methods, including website conversions, mobile app conversions, and offline conversions. The system will use advanced machine learning to optimize for these conversions, tailoring bids for each auction.

Timeline

When it comes to the timeline you should start with the transition today and start with testing.

You can expect similar performance as on your VAC if you are using video assets only.

Google is preparing a manual upgrade tool available at the beginning of 2025, but for the full feature access, it is recommended to start with a new campaign.

VAC campaigns will no longer be an option to create from March 2025 and after that, in Q2 all remaining VAC campaigns will be upgraded to Demand Gen. 


🎯 Inceptly’s top picks:
Essential reading you can't afford to skip

Discover the secret behind this YouTube ad’s success! Its organic, educational approach is converting like crazy—and there’s a lot to learn from it. Want to know how this ad style could transform your marketing strategy?

Read the full blog post for valuable insights now!

Discover how the new 3-minute YouTube Shorts can unlock fresh opportunities for advertisers! Dive into our blog to learn how to maximize this exciting format and connect with your audience in creative ways.

Read the full blog post here!

Want to explore how YouTube Ads can drive real results for your business?

Try YouTube Ads risk-free. We only charge for results—will this work for you?

Limited spots available. Reserve yours now!

Jovan Simic, Account Manager

Jovan Simić is an experienced media buyer responsible for over $30M in profitable ad spend. At Inceptly, Jovan has collaborated with prominent brands, including Advanced Bionutritionals, Amplify Solar, Fittrack, John Crestani, and The Social Man, demonstrating his versatility and expertise. His deep understanding of media buying and consistent track record of success make him an invaluable asset to the industry.

💌 Like this newsletter? Let's continue the conversation

Get in touch with us by responding to this email or tagging us on LinkedIn or Instagram and sharing your thoughts. Your feedback helps us keep our newsletter relevant and interesting.

Enjoyed what you read? Don't keep it to yourself! Share this email with your friends and help us grow our community.

Not a subscriber yet? Click here and join our community for more insightful content straight to your inbox.

- This newsletter is brought to you by -

Inceptly: the performance video ad team behind $950M+ in direct response revenue

Inceptly High-Performance YouTube Advertising Agency

Inceptly builds YouTube ad creatives & manages over $5M/month in YouTube ad spend for companies like ClickFunnels, Descript, MindValley, Advanced Bionaturals, Organifi, and many more.

Are you spending over $1K/day on ads and looking to scale your business with YouTube ads?

Schedule your free performance ad brainstorming call here: