In Brief: Kylie Chen’s article discusses how demand generation, a hybrid of search and display marketing, is becoming increasingly popular in the hospitality industry due to its potential to drive customer engagement and revenue growth.
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If Search and Display Had a Baby: Why Demand Gen is the New Hybrid You Actually Want – Image Credit Unsplash
What are Demand Gen campaigns?
Google’s new Demand Gen campaign is designed to capture engagement and actions across YouTube, including Shorts, Discover, Gmail, and Google Display Network websites. They are ideal for advertisers who want to serve visually appealing, multi-format ads through Google channels.
Google shares that the benefits of running Demand Gen ads are:
- Reach up to 3 billion monthly active Google users
- Placement in front of 50+ billion daily views on YouTube Shorts
- Optimize for website traffic, convert high-value users, and bid against efficient metrics
While Performance Max campaigns are designed to maximize performance across all of Google’s channels and surfaces, Demand Gen generates demand and delivers results on Google’s most immersive, visual touchpoints such as Discover, Gmail, Google Display Network, YouTube In-Feed, YouTube In-Stream, and YouTube Shorts. So if Search Ads and Display Ads had a baby… this is why the baby is obsessed with YouTube Shorts.
How is Demand Gen different from Paid Search campaigns?
Google paid search campaigns are fundamental for driving website traffic and conversions with targeted keywords and text ads, while Demand Gen campaigns use a mix of creative assets (videos and/or images) alongside audience targeting. Also, paid search campaigns capture demand that already exists, while Demand Gen creates interest before a search even happens.
Key differences are intent, placements, triggers, creatives, and costs:
| Paid Search (Search Ads) | Demand Gen Campaigns | |
| Intent | Searching for something specific, i.e., “hotels in downtown Nashville.” | Scrolling through feeds for entertainment or information |
| Placements | Google Search results, Maps, and Search Partners. | YouTube (Shorts, In-stream), Discover, Gmail, & Google Display Network |
| Triggers | Keywords | Audience Signals |
| Creatives | Text (headlines and descriptions) | Images and/or videos |
| Costs | CPCs can range from $1-$6+, depending on competition and volume of searches | CPCs are lower than Search Ads ($0.20 – $1) |
A new feature for Demand Gen triggers for 2026 is Lookalike Segments, which allows advertisers to find new users who share characteristics with current customers.
How is Demand Gen different from Google Display Network?
With Google Display Network, you can reach potential customers across 3 million sites and apps with creatives (either animated ads or responsive display ads). With Demand Gen campaigns, you can drive demand and conversions on YouTube, Display, and more with image and video ads.
Key differences are goals, placements, and creatives:
| Google Display Network (GDN) | Demand Gen Campaigns | |
| Goals | Awareness & Retargeting | Demand Creation & Conversions |
| Placements | 3M+ third-party websites, apps, & YouTube. | YouTube (Shorts, In-stream), Discover, Gmail, & Google Display Network |
| Creative Formats | Static banners, HTML5 & Responsive display ads | Videos (4 different formats), Carousel ads, & Single Image ads. |
Targeting is also different between GDN and Demand Gen, where GDN heavily utilizes contextual targeting, whereas Demand Gen uses interest-based algorithms.
Which campaign is the best to use?
There isn’t one solution.
Paid Search Ads help to drive site traffic in front of people who are actively searching Google for products or services you offer. Search Ads are meant for the mid-funnel stage of the booking journey, so think of them as the parents in a family tree.
Display Ads offer the lowest possible cost per thousand impressions (CPM) and are the best option for retargeting. It’s also the best option if you have a specific list of websites where you want your ads to appear. Display Ads are used to target the top of the funnel, which makes it like the family tree itself.
Demand Gen campaigns are best used when you have highly appealing visual assets and want to drive action (clicks/conversions) from users as they are browsing their favorite feeds. Aka: the baby, because it’s a blend of both.
Just as everyone in the family plays a part, we recommend a holistic approach and combining different campaign types as they fit your marketing budget.
Kylie Chen, Director of Paid Strategy, Cogwheel Marketing & Analytics. Connect with Kylie on LinkedIn.
Source: View the original article at Cogwheel Marketing.
