Understanding The Video Action Campaign Foundation
Video Action Campaigns have been a cornerstone of performance-focused video advertising on YouTube for several years. These campaigns were designed specifically to drive conversions--whether that meant purchases, sign-ups, leads, or other valuable actions on your website. The targeting was precise, the optimization was conversion-focused, and the format was video-first, typically using skippable in-stream ads that could be optimized for specific actions.
The fundamental strength of Video Action Campaigns lay in their single-minded focus on driving action. Advertisers could set specific conversion goals, and Google's machine learning would optimize ad delivery to users most likely to complete those actions. This made VAC an incredibly effective tool for direct response advertising, allowing businesses to connect video engagement with tangible business outcomes. The campaign type was particularly popular among e-commerce advertisers, lead generation businesses, and any marketer focused on bottom-of-funnel conversions.
However, VAC had limitations that became increasingly apparent as consumer behavior evolved. The campaigns were confined primarily to YouTube inventory, limiting their reach to users actively watching video content on that platform. While YouTube's reach is massive--billions of users globally--there's a significant audience that engages with Google's other surfaces without necessarily watching long-form video content. This constraint meant advertisers using VAC were potentially missing valuable touchpoints where their target audience was actively researching, discovering, and considering products.
The Demand Gen Alternative: Expanded Reach And Capabilities
Demand Gen campaigns represent Google's answer to the limitations of the VAC model while preserving its conversion-driving strengths. These campaigns were designed to find, capture, and convert interest by meeting users across YouTube (including Shorts), Discover feeds, and Gmail--all within a single campaign structure, as detailed in Google's official announcement on the upgrade. This multi-surface approach means your ads can appear wherever your audience is naturally engaging with content, not just during video consumption.
Expanded Placement Inventory
The expanded placement inventory is perhaps the most significant advantage of Demand Gen over traditional Video Action Campaigns:
- YouTube placements: In-stream ads, video discovery ads, and YouTube Shorts
- Discover feeds: Personalized content recommendations across Google's network
- Gmail: Promotional tab advertising within user's email interface
Creative Flexibility
Demand Gen embraces a multi-format approach that includes both video and image assets within the same campaign:
- Video assets for engaging storytelling
- Single images for static promotion
- Carousel ads for showcasing multiple products
- Portrait and square formats optimized for different placements
Enhanced Targeting
Demand Gen adds sophisticated options for reaching users based on interests and behaviors across Google's ecosystem, combining conversion-focused optimization with advanced audience segmentation. The campaign type integrates seamlessly with your broader paid advertising strategy while reaching audiences who may not engage with traditional video-first formats.
Performance Impact
20%
More conversions when using both video and image assets
39%
Average CTR increase in case studies
40%
Average CPC decrease after migration
Creative Requirements And Best Practices
The shift from Video Action Campaigns to Demand Gen requires thoughtful consideration of creative strategy. While VAC campaigns could succeed with a single video asset, Demand Gen's multi-format nature demands a more diverse creative approach.
Video Assets
Video assets remain central to Demand Gen success:
- Short-form video: Performs particularly well across YouTube Shorts and in-stream placements
- Skippable in-stream: Works well for longer storytelling approaches
- Bumper ads: Six-second non-skippable spots for message reinforcement
Your existing VAC video assets should generally translate well to Demand Gen, but consider whether they're optimized for the full range of placements they'll now serve.
Image Assets
Image assets are where many advertisers will need to invest new effort:
| Format | Dimensions | Best For |
|---|---|---|
| Landscape | 1200x628 px | Gmail, Discovery feeds |
| Square | 1200x1200 px | Versatile across placements |
| Portrait | 1080x1080 or 1080x1350 px | Discover, Shorts companion |
Carousel Best Practices
Carousel ads allow showcasing multiple products in a single ad unit:
- Use 2-5 cards per carousel
- Each card should have a compelling image and brief headline
- Include a clear call-to-action for each card
- Works especially well for e-commerce with multiple products
According to Google's performance data, advertisers using both video and image assets saw significantly more conversions at similar cost per action compared to those using video assets alone.
To maximize your campaign performance, consider how AI-powered tools can help you create and test multiple asset variations efficiently.
Implementation Strategy For A Smooth Transition
Successfully navigating the VAC to Demand Gen migration requires a structured approach that addresses creative, technical, and strategic elements.
Step 1: Audit Your Existing Assets
- Document current video assets and their performance
- Identify gaps in your creative library
- Review targeting and audience segments
- Assess conversion tracking setup
Step 2: Develop Creative Expansion Plan
- Create image assets for each recommended format
- Develop carousel variations for key products or offers
- Prepare portrait and square formats for Discover
- Consider A/B testing variations
Step 3: Prepare Tracking Infrastructure
- Verify conversion tracking accuracy
- Confirm attribution model alignment
- Set up placement-level performance tracking
- Establish baseline metrics
Step 4: Execute Migration
- Monitor campaigns during upgrade
- Track performance by placement and format
- Make adjustments based on early data
- Scale what works, pause what doesn't
Parallel Testing Option
Consider running parallel campaigns during transition:
- Create new Demand Gen campaigns before upgrade
- Establish baseline performance data
- Compare VAC and Demand Gen results
- Optimize based on comparative insights
For more on optimizing campaigns with AI and automation, see our guide on optimizing PPC campaigns with AI. Additionally, learning how to use Google Ads Performance Planner can help you forecast and plan your budget allocation across the expanded inventory.
Common Pitfalls And How To Avoid Them
The VAC to Demand Gen transition presents several opportunities for advertisers to stumble. Understanding these common pitfalls helps you navigate around them.
Pitfall 1: Treating Demand Gen As A Simple Replacement
The mistake: Assuming Demand Gen will perform exactly like VAC with no strategic changes.
The solution: Embrace Demand Gen as a fundamentally different campaign type with expanded capabilities. Adjust expectations and strategy accordingly.
Pitfall 2: Insufficient Creative Diversity
The mistake: Running Demand Gen with only video assets carried over from VAC.
The solution: Invest in image assets across all recommended formats. The substantial conversion increase from using both video and image is significant and worth the investment.
Pitfall 3: Neglecting Non-YouTube Placements
The mistake: Focusing only on YouTube performance and ignoring Discover and Gmail results.
The solution: Monitor performance across all placements. Optimize bidding and creative for each surface where you reach audiences.
Pitfall 4: Underestimating Testing Importance
The mistake: Expecting automated optimization to work without providing diverse creative options.
The solution: Build systematic testing into your routine. Use performance data to inform creative investment and optimization decisions.
Optimizing Your Upgraded Campaigns
Once your campaigns have migrated to Demand Gen, ongoing optimization becomes key to maximizing the benefits.
Establish Baseline Metrics
In the first few weeks after migration:
- Track metrics by placement type, format, and audience segment
- Build comprehensive performance patterns
- Compare against VAC benchmarks
- Identify initial optimization opportunities
Data-Driven Creative Investment
Use performance data to inform decisions:
- Develop more variations on winning creative approaches
- Expand carousel strategies for high-performing products
- Reallocate budget from underperforming assets
- Test new formats based on placement insights
Cross-Placement Optimization
Pay attention to performance patterns:
- Video performance across Shorts vs. in-stream
- Image performance on Discover vs. Gmail
- Audience response differences by placement
- Time-of-day and day-of-week patterns
Integration With Other Google Campaigns
Consider how Demand Gen complements your broader Google strategy:
- Performance Max campaigns: Combined reach and automation
- Search campaigns: Reinforce messaging to search-intent audiences
- Shopping campaigns: Drive consideration before purchase intent
The insights from Demand Gen can inform your approach across your entire digital marketing strategy. Understanding how to leverage AI tools for PPC can give you a competitive edge in optimizing across all your campaigns.
Frequently Asked Questions
Sources
- Google Blog: Drive better performance by upgrading Video Action Campaigns to Demand Gen
- Google Ads Help: Video Action Campaigns are being upgraded to Demand Gen
- Search Engine Land: Google Ads to upgrade Video Action Campaigns to Demand Gen in 2025
- Smartly: Google Video Action Campaigns Are Migrating to Demand Gen