91% of Top Brands Use Google Ads' Demand Gen – Are You Missing Out?
The digital marketing landscape is experiencing a profound transformation as the traditional divides between branding and performance marketing continue to fade. With Google Ads’ recent introduction of accelerated checkout for Demand Gen campaigns, advertisers can now shorten the path to purchase, driving an 11% increase in conversion value while maintaining cost efficiency. Consumers no longer follow linear purchase journeys but engage in what the Boston Consulting Group terms "4S behavior" — streaming, scrolling, searching, and shopping — often simultaneously across multiple channels. This paradigm shift is forcing brands to rethink their strategies, as evidenced by Fielmann, Europe’s leading optician. Despite achieving 90% brand awareness through TV and outdoor ads, Fielmann faced challenges in adapting to cross-channel consumer journeys. The rise of platforms like YouTube, where 53% of Gen Z users purchase products after watching influencer content, underscores the need for hybrid solutions that blend upper-funnel awareness with lower-funnel conversions. This article explores how Demand Gen campaigns in Google Advertising are emerging as the answer, leveraging AI to bridge these gaps while delivering measurable results.
I. Demand Gen Campaigns: A Hybrid Solution
Demand Gen represents a revolutionary approach in Google Ads, designed to address the fragmented consumer journey. Unlike traditional campaigns that silo branding and performance, Demand Gen leverages AI-driven targeting to reach audiences across YouTube (including Shorts), Discovery, and Gmail. This multi-platform strategy ensures brands can capture attention during streaming and scrolling moments while seamlessly guiding users toward conversions. For instance, Google reports that 73% of multi-touchpoint online purchases involve Google or YouTube, highlighting the platform’s role in both discovery and decision-making. Demand Gen’s ability to serve visually rich ad formats — from shoppable videos to interactive carousels — aligns with the 4S model, ensuring brands remain relevant at every stage. By unifying broad-reach branding with precision performance tools, Demand Gen eliminates the historical trade-off between awareness and ROI, making it indispensable for modern marketers.
II. Case Study: Fielmann’s Demand Gen Success
Fielmann’s 2024 summer campaign exemplifies Demand Gen’s potential. Partnering with Google, the optician deployed AI-powered Google Ads across YouTube, Discovery, and Gmail, targeting sunglasses and prescription glasses shoppers. The results were staggering: 12 million impressions, a 7.7% lift in purchase intent, and a 24% increase in "Add to Cart" actions. Notably, searches for "Fielmann sunglasses" surged by 60%, proving Demand Gen’s dual impact on brand equity and conversions. AI played a pivotal role, expanding Fielmann’s reach to younger demographics and women — audiences previously underserved by performance campaigns. Florian Müller, Fielmann’s Head of Performance Marketing, highlighted how AI streamlined complex audience segmentation, allowing the team to prioritize strategic creativity over data overload. The campaign’s success has prompted Fielmann to adopt an "always-on" Demand Gen strategy in Germany and expand it across Europe, signaling a broader industry shift toward integrated marketing.
III. Broader Industry Applications and Insights
The principles behind Fielmann’s success extend to other sectors. Mercari, Japan’s premier flea market app, optimized its web-to-app integration through deep linking and Web-to-App Connect, facilitating cross-channel measurement that drove up GMV (Gross Merchandise Value). Similarly, Sephora’s YouTube Shorts campaign, featuring creator-led holiday gift guides promoted through Google Ads, drove an 82% increase in branded searches. A 2024 Traackr survey found consumers are 98% more likely to trust YouTube creators than influencers on other platforms, shortening purchase journeys by six days on average. Retailers utilizing AI-driven tools such as Merchant Checkout within Demand Gen campaigns—tools that minimize checkout steps—are experiencing an 11% increase in conversion value. These examples underscore how AI and cross-platform strategies via Google Advertising are redefining retail marketing, turning unpredictable consumer behaviors into predictable growth opportunities.
Brands can adopt solutions like Topkee’s TTO CDP, which automate cross-channel data tracking to reconcile short- and long-term performance. Similarly, Topkee’s TMID-based tracking enables granular campaign analysis while complying with data protection standards, ensuring transparency in audience segmentation. Tools like Topkee’s AI-driven creative production exemplify this balance, generating tailored ad variants without compromising user trust.
IV. Strategic Implementation of Demand Gen
To replicate these successes, brands must address three prerequisites. First, high-quality data feeds are non-negotiable; real-time updates on pricing, inventory, and imagery ensure AI algorithms deliver relevant ads. Fielmann’s iterative creative process, where AI generated dynamic asset variations via Google Ads, improved engagement without disrupting campaign flow.Second, the organizational silos separating branding and performance teams need to break down. Fielmann restructured its content production and data-sharing practices to align upper- and lower-funnel efforts, a move mirrored by Mercari’s KPI overhaul to prioritize GMV over channel-specific metrics. Finally, embracing AI’s scalability is crucial. As Vera Lüdemann, Fielmann’s Performance Marketing Manager, noted, AI-enabled rapid asset generation via Google Advertising, allowing continuous optimization without creative bottlenecks. These steps, combined with tools like DV360 for cross-channel insights, create a foundation for Demand Gen excellence.
For example, Topkee’s proprietary attribution remarketing strategies analyze cross-channel behavior to retarget users with personalized ads, boosting conversion likelihood by over 70%. Topkee’s AI-powered creative production tools enable brands to dynamically generate these assets, ensuring relevance across funnel stages. This hybrid approach is further enhanced by Topkee’s keyword research and smart bidding solutions, which refine audience targeting while maintaining cost efficiency.
V. Future Directions and Challenges
Looking ahead, innovations like Merchant Checkout in Demand Gen will further streamline conversions, enabling users to purchase directly from YouTube ads. However, challenges persist. Measuring long-term impact remains complex; Mercari’s focus on "accumulative" investments — balancing short-term GMV with dormant-user reactivation — offers a blueprint for sustainable growth. Privacy concerns also loom large. While AI thrives on data, marketers must navigate tightening regulations by implementing privacy-first controls, such as Google Ads’ AI-powered measurement tools that anonymize user insights. Ethically, brands must balance personalization with transparency, ensuring AI enhances rather than intrudes on consumer experiences. As these tools evolve, CMOs like Fielmann’s Benjamin Ludigs will increasingly view marketing as a convergence of "technology, data, and creativity," where AI acts as the unifying force.
Conclusion: The Imperative for Integrated Marketing
The era of siloed marketing is over. Demand Gen campaigns have proven that branding and performance are not mutually exclusive but mutually reinforcing. From Fielmann’s 7.7% lift in purchase intent to Sephora’s creator-driven Shorts success, AI-powered, cross-channel strategies are delivering unprecedented results. For marketers, the mandate is clear: adopt AI tools, break down internal barriers, and prioritize high-quality data to stay ahead in a landscape where consumer attention is fragmented but purchase intent is omnipresent. As Florian Müller aptly stated, "If you don’t evolve, you’ll stand still." Whether you’re a retail giant or a DTC startup, the time to integrate Demand Gen into your Google Advertising strategy is now. For tailored guidance on implementing these solutions, consult our experts to unlock your brand’s full potential.
