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Google Demand Gen and Performance Max: a full-funnel combo for ecommerce

A new breakdown explains how Demand Gen’s creative and audience controls can complement Performance Max’s conversion engine for ecommerce advertisers.

Google Ads practitioners are outlining how Demand Gen can work best alongside Performance Max for ecommerce today.

  • Demand Gen launched in 2023 as Google’s engagement-focused campaign type spanning YouTube, Discover, and Gmail, and it’s now positioned as a practical companion to lower-funnel campaigns.
  • Since July 2025, Video Action Campaigns have been replaced by Demand Gen, consolidating YouTube in-stream, Shorts, and in-feed inventory under the same campaign umbrella.
  • Demand Gen is positioned as the more hands-on option for creatives: advertisers can preview and adjust ad combinations per placement before launch, rather than relying solely on automated asset mixing.
  • For targeting, Demand Gen supports building audiences directly (including lookalike audiences), while Performance Max relies on audience signals rather than fixed targeting.
  • For reducing overlap, the piece points to feed-only Performance Max setups (Shopping-only) while Demand Gen runs visual placements; Demand Gen also gained optional channel opt-outs via an open beta in June 2025.