Demand Generation has rapidly moved from being an experimental campaign type to a foundational part of Google’s advertising ecosystem. Yet, despite its evolution, many marketers still approach Demand Gen with outdated assumptions shaped by how display and discovery advertising worked years ago.
In 2025, Demand Gen is not vague, uncontrollable, or limited to brand awareness. It is measurable, configurable, and deeply tied to business outcomes across both digital and physical channels.
2025 Demand Gen Myths Unwrapped
Let’s break down the most persistent myths and uncover the reality behind how Demand Gen actually performs today.
Demand Gen Myth #1
“Advertising across YouTube, Discover, and Display lacks precision and wastes spend.”
Myth: “Advertising on YouTube, Discover, and the Display Network is a ‘spray and pray’ approach. I have little control over my placements, and my ads show on surfaces that I don’t value.”
Fact: With the availability of channel controls in Demand Gen campaigns, you can precisely choose where your ads appear across Google’s most visual surfaces, including YouTube, Gmail, Discover, and the Google Display Network.
Where this belief comes from
For a long time, visually rich platforms were associated with mass reach rather than strategic targeting. Marketers often felt:
- Ads appeared in places that didn’t align with brand or performance goals
- There was little clarity over where budgets were actually spent
- Discovery-style campaigns prioritised scale over relevance
This led to the assumption that Demand Gen is inherently a “set it and hope” approach.
What changed in 2025?
Demand Gen campaigns now offer explicit channel-level controls. Advertisers can now actively shape where and how their ads appear.
Marketers can:
- Choose specific inventory across:
- YouTube (including Shorts and in-feed placements)
- Google Discover
- Gmail
- The Google Display Network
- Align creative formats with the behaviour of each surface
- Exclude placements that don’t support brand safety or performance objectives
Rather than casting a wide net, Demand Gen allows brands to show up intentionally on Google’s most engaging environments.
The real takeaway
Demand Gen is no longer about uncontrolled reach. It’s about deliberate exposure at moments of discovery, supported by clear placement decisions.
Demand Gen Myth #2
“Demand Gen is good for visibility, but it doesn’t drive real conversions.”
Myth: “Demand Gen campaigns only work to make people aware of my brand and don’t drive real, quantifiable business results like purchases or leads.”
Fact: The new customer acquisition goal is geared to optimise your campaigns to acquire new customers. You can also be more competitive with your bids for high-value new customers. Advertisers that use New Customer Only Mode have, on average, improved their new customer ratio by 11.5% with a -3% reduced acquisition cost.
Why this myth persists
Because Demand Gen is highly visual and often introduces brands to new audiences, it’s frequently mistaken for an upper-funnel-only tactic.
As a result:
- Conversions are expected to happen elsewhere (Search, Shopping, or Performance Max)
- Success is judged by impressions instead of outcomes
- Budgets are capped prematurely before performance compounds
This overlooks how modern consumers make decisions.
What changed in 2025?
In 2025, Demand Gen is built to acquire customers, not just attention.
With the introduction of the New Customer Acquisition goal, advertisers can instruct Google’s systems to prioritise users who haven’t previously converted.
This enables brands to:
- Focus spend on net-new demand rather than recycled audiences
- Bid more competitively for high-value first-time customers
- Separate prospecting efficiency from remarketing performance
Proof of performance
Advertisers using New Customer Only Mode have, on average:
- Increased their share of new customers by 11.5%
- Reduced acquisition costs by 3%
These results demonstrate that Demand Gen is expanding its reach efficiently.
The real takeaway
Demand Gen now operates comfortably across:
- Upper-funnel discovery
- Mid-funnel consideration
- Lower-funnel acquisition
It no longer competes with performance channels.
It complements and strengthens them.
Demand Gen Myth #3
“Demand Gen only influences online behaviour. It can’t drive store visits or offline sales.”
Myth: “Demand Gen only helps you find your customers online. Store foot traffic and in-store purchases are driven by traditional media, and can’t be credited to Demand Gen.”
Fact: Omnichannel bidding helps you maximise your omnichannel strategy by optimising for both online sales and in-store visits. Pairing with Local Offers enables you to showcase in-store promotions to nearby shoppers.
Why is this thinking outdated?
Offline impact has traditionally been difficult to measure digitally.
This led many brands to:
- Rely on traditional media for store traffic
- Treat online and offline marketing as separate efforts
- Undervalue digital discovery’s role in physical purchases
But consumer behaviour has changed, and so has measurement.
What changed in 2025?
Demand Gen now supports omnichannel bidding and allows campaigns to optimise toward:
- Online conversions
- In-store visits
- A combination of both
Instead of choosing between digital or physical outcomes, advertisers can pursue them simultaneously.
How to amplify store impact with Local Offers
When paired with Local Offers, Demand Gen becomes even more powerful:
- Nearby shoppers see timely, location-relevant promotions
- In-store messaging reaches users while they’re browsing Google surfaces
- Discovery turns into foot traffic with measurable attribution
This creates a seamless path from inspiration to in-store action.
The real takeaway
Demand Gen doesn’t stop at online engagement. It contributes to physical retail performance and closes the loop between screens and stores.
Why These Myths Hold Brands Back
Believing these misconceptions often results in:
- Over-investment in lower-reach channels
- Missed opportunities for scalable growth
- Fragmented strategies across brand, performance, and retail
In contrast, brands that understand Demand Gen’s true capabilities use it to:
- Capture demand earlier in the journey
- Convert discovery into customers
- Align online engagement with offline results
Final Perspective
Demand Gen in 2025 represents a shift in how growth is built, not through isolated tactics, but through connected experiences.
It offers:
- Control without sacrificing scale
- Performance without losing creativity
- Measurement across digital and physical touchpoints
For marketers willing to move past outdated assumptions in 2026, Demand Gen isn’t just another campaign type. It’s a competitive advantage.
Need a fresh perspective? Let’s talk.
At 360 OM, we specialise in helping businesses take their marketing efforts to the next level. Our team stays on top of industry trends, uses data-informed decisions to maximise your ROI, and provides full transparency through comprehensive reports.
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