2025: The Year YouTube Ads Grew Up
If you’ve been side-eyeing YouTube Ads as “that channel with too much fluff and too little ROI,” it’s time to reconsider. Because Google’s pulling the plug on Video Action Campaigns (VAC) and rolling out Demand Gen campaigns. And no – this isn’t just a rebrand. It’s a full-on rewire.
As of March 2025, you can’t create new VACs anymore. And by Q2, your existing ones will be force-migrated (yes, force – whether you’re ready or not).
Let’s unpack what’s actually changing – and how to use it to your advantage, before your competitors do.
What Is Demand Gen – and Why Should You Care?
Demand Gen is Google’s campaign type (released in 2023) that blends performance goals with cross-channel creative muscle. Think YouTube In-Stream, Shorts, Gmail, and Discover all under one roof. Finally, a campaign structure that doesn’t treat creative assets like single-use plastic.
Benefits:
- Multi-channel reach, one campaign: Reach users across YouTube, Gmail, Discover, and Shorts. Fewer silos, more synergy.
- Lookalike audiences: Welcome to 2025 – Google’s now calling them what Meta has been for years.
- Manual placement control: Choose which platforms your ads show on (hallelujah!).
- Vertical video? No problem: Upload 9:16 images and let them play directly in Shorts – or auto-trim long videos in the setup.
- View-Through-Conversions: Because not every user clicks – but some still buy.
But here’s the (predictable) downside:
- More complexity: Demand Gen isn’t a plug-and-play setup. You’ll need strategy, segmentation, and actual creative planning. Gasp.
- CPAs still volatile: Early testers are reporting swings. It’s powerful – but still finding its legs.
- It’s still Google: Transparency is improving… but not fully democratic.
Goodbye, Awkward Mid-Rolls
Ever had an ad split a sentence mid-word in a tutorial? YouTube finally noticed.
Starting 12 May 2025, YouTube will:
- Avoid placing mid-roll ads during key moments (like a sentence or action).
- Offer a new Studio tool to spot awkward ad placements.
- Combine auto + manual mid-rolls = up to 5% more ad revenue for creators.
For advertisers: this is a big UX win. Better placements = better watch time = higher brand lift.
Demand Gen in Action: Setup Guide for Smart Marketers
Enough theory – let’s talk execution. Here’s how to build your first Demand Gen campaign like a pro:
1. Start with clear goals
You can’t optimise what you haven’t defined.
- For conversions: pair sharp creatives with remarketing & lookalikes.
- For awareness: go broader and ride the Shorts wave.
2. Segment your audiences intentionally
You’ve got options:
- Remarketing lists (web visitors, YouTube viewers, etc.)
- Lookalikes (finally!)
- Affinity & in-market audiences (still relevant for top-funnel reach)
Pro Tip: Mirror your funnel stages in your campaign structure. Don’t throw everyone in the same pot.
3. Build creatives by platform logic
Demand Gen is a visual-first playground. Here’s how to play smart:
| Format | Best Practice |
| Shorts (9:16) | Punchy, <30 sec, big hook, subtitles |
| In-Stream (16:9) | Hook in the first 5 sec, clear CTA |
| Image Ads | Clean, brand-aligned, emotional or product-centric |
Use YouTube’s auto-trimming feature – but also test your own edited cuts. Spoiler: manual often wins.
4. Choose bidding strategies based on data depth
- No data yet? Start with Maximise Conversions or Maximise Clicks.
- Got historical data? Go for Target CPA or Target ROAS.
Don’t forget to activate View-Through-Conversions – that’s your hidden attribution goldmine.
Real-World Best Practices
- Run at least three asset types per campaign. Don’t just go full Shorts or bust.
- Hook variations matter more than you think – A/B test your intros like your ROAS depends on it (because it does).
- Refresh creatives every 2–4 weeks. Bored users don’t convert.
- Keep an eye on Discover placements – if they underperform, switch them off and focus on YouTube.
Demand Gen ≠ VAC 2.0
Don’t make the rookie mistake of copying your VAC setup into Demand Gen. The logic is different, the audiences behave differently, and the performance expectations are higher.
Google’s automation is evolving, but not omniscient. You still need to test, iterate, and – yes – use that dusty brain of yours.
Bonus: Demand Gen + Shorts = Performance Power Couple?
YouTube Shorts is booming – and Google wants you to jump in. With Demand Gen, your vertical creatives get automatic Shorts placement. This isn’t just a TikTok clone moment. It’s snackable, skippable, scalable performance.
Want to build TOFU hype and BOFU action in the same campaign? This is it.
Don’t Miss YouTube Brandcast 2025
Mark your calendar: 14 May 2025. New formats, features, and creator collabs released. More AI-led tools, more interactivity, and a few jaw-droppers came our way.
Final Thoughts: This Isn’t Just a New Campaign Type – It’s a Whole New Approach
Demand Gen is not “just the new VAC.” It’s the foundation for YouTube Ads in the AI-era of Google. If you nail your creative strategy, audience logic and testing cadence, it will reward you. If not – well, see you at the next mid-roll ad placement meeting.
TL;DR:
| Feature | What’s New | Why It Matters |
| VAC replaced | Fully sunset by Q2 2025 | Get ready – or get caught |
| Multi-channel | YouTube, Gmail, Discover, Shorts | Consolidated impact |
| Creative control | 9:16 + auto cut tools | Tailored for mobile-first users |
| Manual placements | Yes, finally! | More precision, less spray-and-pray |
| Audience types | Lookalikes unlocked | Better reach, smarter spend |
| New metrics | View-through conversions | Better attribution = better decisions |
You have questions or need more information’s`? Give me a shout – or drop it in the
PPC Live Whatsapp.
And remember: Don’t just advertise. Demand attention.
