How to Supercharge Google Demand Gen Campaign Performance

Introduction to the Webinar

Welcoming Participants

• The host welcomes attendees and allows time for more participants to join.

• Introduction of Thomas Etel, a well-known figure in Google Ads discussions on LinkedIn.

Speaker Background

• Thomas shares his recent experience hosting another webinar focused on LinkedIn growth strategies.

• Discussion about content that works organically on LinkedIn and insights shared during the previous session.

Upcoming Events and Collaborations

In-Person Meeting Plans

• James inquires about potential in-person meetings with other speakers, including Adrien and Miles.

• Thomas confirms plans to meet at the Edor Experience event in Bologna, where he will participate in a live Google Ads audit panel.

Google Ads Updates: Third Party Cookies

Delay of Cookie Phase-Out

• Discussion about Google's announcement to delay the removal of third-party cookies from 2024 to 2025.

• Thomas expresses that this delay was expected due to the complexities involved in managing cookie removal.

Implications for Marketing

• Insights into how companies are seeking information regarding audience APIs as part of their marketing strategies amidst these changes.

• Thomas believes further delays may occur as Google navigates technical challenges related to cookie phase-out.

Webinar Logistics and Housekeeping

Session Overview

• James introduces himself as the content manager and outlines the structure of the webinar, aiming for a 50-minute discussion followed by Q&A.

Engagement Guidelines

• Attendees are encouraged to submit questions via a dedicated Q&A tab rather than public chat for better organization.

Resources and Newsletter Promotion

Accessing Additional Materials

• Mention of available resources in the docs tab during the session, including links relevant to discussed topics.

Newsletter Subscription Encouragement

• Thomas promotes his monthly PPC updates newsletter, highlighting its growing subscriber base exceeding 10,000.

Introduction to Demand Gen Campaigns

Overview of the Session

• The session will include audience polls, allowing participants to engage through the polls tab.

• A new feature from Google was introduced: generative AI tools for demand generation campaigns that create image assets from text prompts.

Insights on Generative AI Tools

• Thomas has experimented with these tools in Performance Max (pmax) campaigns, noting they produce good results when detailed prompts are used.

• Google is prioritizing demand generation campaigns as the second campaign type after pmax, indicating a strategic focus on this area.

• Early adoption of these tools is encouraged as they are expected to improve significantly over time and become essential for future campaigns.

Demand Gen vs. Discovery Campaign Types

Agenda Overview

• The agenda includes 12 points covering various aspects of demand gen campaigns, including definitions and comparisons with older campaign types.

Key Topics to be Discussed

• Common pitfalls in demand gen campaigns will be addressed alongside strategies for optimizing first-party lookalike and custom audiences.

• A tip will be shared about leveraging existing data from Meta campaigns to enhance demand gen efforts efficiently.

Understanding Demand Gen Campaign Mechanics

Definition and Purpose

• Demand gen campaigns serve as Google's solution for mid-to-top funnel awareness similar to paid social platforms like Meta and LinkedIn.

Understanding Demand Generation Campaigns

Key Differences Between Demand Gen and Discovery Campaigns

• Demand generation campaigns do not include paid search placements; instead, ads are served across various platforms like YouTube Shorts, Google Discover, and Gmail.

• The focus of demand gen campaigns is to reach potential customers who may not be aware of the brand, contrasting with traditional search ads targeting active seekers.

• Google's documentation highlights that demand gen integrates high-performing video and image assets across visual entertainment platforms, reaching over three billion monthly users.

Transition from Discovery to Demand Gen

• The upgrade from Discovery to demand generation campaigns signifies Google's competitive stance against other platforms like Meta in the advertising space.

• All ad placements in demand gen are on Google-owned properties, reducing risks associated with less reputable websites.

• New features include YouTube Shorts and instream ads for video content, which were not available in previous Discovery campaigns.

Enhanced Features of Demand Gen Campaigns

• Advertisers can now combine image, video, and product ads within a single ad group—an improvement over the limitations of prior campaign types.

• The reintroduction of Max Click bidding for demand gen campaigns allows for more flexible bidding strategies previously reserved for search campaigns.

• Attribution reports have been enhanced to show how demand gen contributes to conversions across different touchpoints in the customer journey.

Audience Targeting Innovations

• Lookalike audiences are a new feature exclusive to demand generation campaigns, allowing advertisers to test audience segments effectively.

• Tools enabling creative prompts have been introduced specifically for demand gen campaigns, enhancing creative development compared to Discovery.

Performance Insights and Contextual Applications

• Experiences with demand generation campaigns vary by account type; they have shown effectiveness in B2B lead generation as well as B2C sectors but require time for optimal performance assessment.

• Success factors include the quality of creatives and detailed audience segmentation; however, results can differ significantly based on industry context (e.g., B2B vs. B2C).

Understanding Demand Generation Campaigns

Common Pitfalls in Setting Up Demand Gen Campaigns

• A significant mistake is treating demand generation campaigns as single campaigns within an account; ideally, there should be one campaign unless different objectives necessitate multiple ones.

• The campaign type allows for location and language targeting at the ad group level, a feature not previously available in Google Ads.

• Splitting budgets across multiple smaller campaigns can dilute data effectiveness; maintaining a single campaign helps optimize performance.

• Advertisers often overlook the importance of testing different audience segments, which can yield valuable insights into what works best.

• Automation does not equate to "set it and forget it"; ongoing optimization and creative rotation are essential for sustained success.

Audience Segmentation Strategies

• Demand gen campaigns allow for lookalike audience segments that share characteristics with existing first-party lists like remarketing or customer lists.

• Lookalike audiences can be refined into narrow (2.5%), balanced (5%), or broad (10%) segments based on similarity to the original seed list.

• Combining first-party data with third-party audiences enhances targeting capabilities; experimenting with these combinations is encouraged for optimal results.

• Google recommends using first-party lookalike and custom segments together to drive better performance in demand gen campaigns.

Audience Optimization Strategies

Understanding Audience Performance

• Analyzing audience signal lists helps identify which segments perform well, allowing marketers to remove underperformers and focus on top performers.

• For limited budgets, creating a lookalike audience from converters can be effective. Larger companies can use detailed conversion data, while smaller firms may rely on broader engagement metrics.

• Lookalike audiences based on user actions (e.g., add to cart) provide a substantial base for targeting potential customers.

Implementing Lookalike Audiences

• Once established, lookalike audiences should be tested with demand generation campaigns for optimal accuracy and higher conversion rates.

• Combining all audience segments in one campaign may lead Google to prioritize larger reach segments over more targeted ones.

Segment Analysis in Google Ads

• Detailed performance metrics for each audience segment are crucial; these can be accessed through the Google Ads interface by navigating to the audience section.

• A hidden feature allows users to view individual segment performance metrics like CTR and conversion rates, enabling better comparison across different segments.

Optimizing Campaign Segments

• Identifying poorly performing segments (e.g., specific in-market audiences) is essential. Users can circumvent Google's restrictions by removing ineffective segments directly from their main audience list.

• This method of optimization ensures that only effective audience segments remain active in campaigns, enhancing overall performance.

Bidding Strategies for Demand Generation

Overview of Bidding Options

• Four distinct bidding strategies are available for demand generation campaigns; understanding when to use each is critical for success.

Max Clicks Strategy

• The Max Click strategy targets relevant traffic without tracking conversions. It’s not recommended if conversion tracking is a priority but can work with lower budgets than the suggested minimum of $100/day.

Target ROAS Strategy

Understanding Target RWS and CPA Strategies

Initial Setup for Campaigns

• The normal 30-day Target RWS (Return on Spend) cannot be used initially; start with conversion or CPA (Cost Per Acquisition) strategies due to the need for more data.

• For campaigns using target CPA, it's crucial to know your acquisition goals and set a daily budget that is 10 to 15 times your CPA.

Budgeting Insights

• While Google recommends a daily budget of at least five times your CPA, it can work with less; however, aiming for 15 times may be excessive.

• Max conversions are suitable for initial testing without specific acquisition cost targets; gather conversions before switching to CPA or RWS strategies.

Conversion Requirements

• A minimum of 50 conversions is generally required before transitioning to CPA or RWS bidding strategies, but this can vary based on account size and performance.

• Caution is advised when changing bidding strategies; allow time to evaluate performance post-switch.

Leveraging Meta Campaign Data

Synergies Between Platforms

• There exists significant crossover between meta campaigns and demand generation campaigns, utilizing similar ad formats like video ads and carousels.

• If already running meta ads, integrating demand generation campaigns can yield beneficial synergies.

Optimization Tips

• Utilize customer data from meta (e.g., purchasers or leads); upload this data into Google Ads as a seed list for lookalike audiences in demand generation campaigns.

• Combining lookalike audiences from both platforms maximizes reach by targeting converters effectively across both channels.

Creative Strategy

• Test high-performing creatives from meta in demand generation campaigns to leverage existing data-driven insights about audience engagement.

YouTube Ad Placements in Demand Gen Campaigns

Overview of YouTube Ad Placements

• Discussion on leveraging advice to enhance demand generation campaigns, emphasizing the importance of time management during presentations.

• Mention of a humorous SpongeBob meme highlighting the increasing ad placements on YouTube's free version; recommendation to consider YouTube Premium for an ad-free experience.

Advantages of Shopping Feed Ads

• Introduction to shopping feed ads as a unique feature within demand gen campaigns, noted for their effectiveness.

• Emphasis on the brand safety of YouTube home feed ads, providing a clean environment without questionable channels that could harm brand reputation.

Challenges with YouTube Channel Exclusions

• Acknowledgment that not all YouTube placements are beneficial; challenges exist in identifying poor-performing channels for advertising.

• Explanation that Google makes it difficult to exclude undesirable channel placements, requiring advertisers to actively manage and optimize their ad performance.

Workaround for Excluding Channels

• Description of a workaround developed by Thomas for excluding specific low-quality YouTube placements from demand gen campaigns.

• Process involves exporting placement data to Google Sheets, filtering out low-performing channels based on metrics like conversions and CTR before exclusion in Google Ads.

Community Collaboration and Resources

• Mention of a crowdfunding project where advertisers shared URLs of unwanted channels, resulting in a collective exclusion list reaching 6,000 entries.

• Reference to an exclusion list available for Google display campaigns that includes low-quality YouTube channels, suggesting its use alongside Thomas's method for better campaign performance.

Impact of Site Links on Click Through Rates

Importance of Site Links in Demand Gen Campaigns

• Brief overview discussing how site links can be added to demand gen campaigns as part of optimization strategies aimed at improving click-through rates (CTR).

Demand Generation Campaign Optimization

Importance of Site Links in Demand Gen Campaigns

• It's crucial to check site links when running a demand generation campaign. If links are already present, no action is needed; otherwise, adding them can enhance campaign performance.

Insights on IBT for Demand Gen Campaigns

• Exclusive data on invalid traffic (IBT) rates for demand gen campaigns was presented, noting that these campaigns were not included in the 2024 wasted ad spend report due to their recent introduction.

Understanding IBT Protection Mechanism

• The IBT protection for demand gen campaigns operates on an exclusion audience model rather than IP-based detection. Invalid users are identified and added to a negative audience list to prevent repeated ad exposure.

Analysis of Invalid Traffic Rates

• From November 2023 to March 2024, the average IBT rate for demand gen campaigns was found to be 4.65%, which is lower than the average rates for pMax campaigns (5.69% - 5.96%).

Variability in IBT Rates Across Campaigns

• There was significant variability in IBT rates among demand gen campaigns, ranging from as low as 0.5% to as high as around 13%. Auditing traffic is essential to determine where individual campaigns fall within this range.

Traffic Audit Offer

Free Traffic Audit with Luno

• A free traffic audit can be requested through Luno, which will analyze clicks from Google Ads and provide insights into invalid traffic percentages compared to other campaign types.

Accessing Wasted Ad Spend Report

• The average IBT rates across major platforms can be found in Luno's wasted ad spend report, based on a dataset of 2.6 billion paid ad clicks from over 60,000 accounts.

Identifying High Invalid Traffic Channels

Worst Offenders for High Invalid Traffic Rates

• LinkedIn, Twitter, and Meta were identified as channels with high average invalid traffic rates. Spending significantly on these platforms without protection may lead to wasted ad spend.

Troubleshooting Underperforming Demand Gen Campaigns

Five-Step Checklist Overview

• A five-step checklist was introduced for troubleshooting underperforming demand generation campaigns.

Key Troubleshooting Steps:

1. Check Bidding Strategy:

• If a campaign isn't spending effectively, it may have a restricted bidding strategy; adjusting target CPA or ROAS could help boost performance.

2. Review Daily Budgets:

• Ensure daily budgets align with CPA recommendations; Google suggests setting budgets at least ten times the target CPA.

3. Examine Attribution Reports:

• Check if the campaign assists other types despite showing zero conversions; understanding assisted conversions is vital.

4. Consolidate Campaign Structure:

• Avoid having multiple small demand gen campaigns; consolidating efforts can improve effectiveness.

5. Optimize Audience Segments:

• Analyze audience performance and eliminate ineffective segments while enhancing those that work well; consider expanding successful audiences into similar ones.

How to Optimize Your Meta Campaigns?

Best Practices for Meta Campaigns

• Focus on using effective strategies in your meta campaigns. Avoid methods that do not yield results and create synergies among successful tactics.

• For further assistance, participants are encouraged to reach out via LinkedIn if they encounter issues with their campaigns.

Addressing Audience Concerns

• A question from Stephen highlights the challenge of managing kids' channels on YouTube. There is no universal exclusion method, but some websites list channels that can be excluded at the account level.

• Connor's inquiry about running Performance Max (pMax) alongside Demand Generation (demand gen) reveals that demand gen offers more audience control compared to pMax, which primarily uses signals.

Understanding Budget Allocation

• Typically, 70% of a pMax campaign budget is allocated to search ads, limiting exposure to entertainment properties. In contrast, demand gen allows for targeted spending in specific placements.

• If you have a dedicated budget for mid-funnel activities, utilizing demand gen ensures funds are spent effectively without being diverted to search or other areas.

Content Strategies for Demand Gen

• Tanner asks about effective content types for demand generation. Storytelling works well with video ads while educational content can be effective with single images; however, success varies by account.

• Single image ads generally attract more traffic than cover images but there isn't a one-size-fits-all approach; performance depends on the specific content used.

Remarketing and Ad Group Strategies

• Abishek questions whether running a demand gen campaign for remarketing makes sense if standard display remarketing isn’t performing well. The recommendation is to separate ad groups for remarketing and prospecting.

• The effectiveness of having one versus multiple ad groups depends on conversion rates; bundling data may be beneficial when conversions are low over time.

Cannibalization Risks in Campaign Components

Discussion on Cannibalization and Audience Engagement

Insights on Cannibalization

• The speaker addresses a question regarding potential cannibalization, suggesting that it is not expected to be significant. They note that Google has not discussed this issue, implying confidence in the current strategy.

Closing Remarks and Audience Interaction

• The host acknowledges the numerous questions directed at Thomas, apologizing for any unanswered queries. They express gratitude for Thomas's participation and insights shared during the session.

• Thomas invites further questions via LinkedIn, indicating his willingness to engage with the audience post-discussion. He appreciates the volume of inquiries received, highlighting an active interest from participants.