In Q2 2025, Google Ads will transition its Video Action Campaigns (VAC) into the more robust Demand Gen format, offering advertisers greater reach, creative flexibility, and improved targeting capabilities. This update marks a significant shift in how advertisers can capture demand, driving growth with a multi-format, multi-platform approach.
What’s changing?
Google Ads is set to merge Video Action Campaigns (VAC) into the more versatile Demand Gen campaigns in Q2 2025. This change is designed to enhance advertisers’ ability to tap into emerging demand and optimize campaigns through an integrated approach that combines video and image assets. With Demand Gen, Google promises advertisers an increased potential to boost performance while maintaining cost efficiency.
Why does this matters?
Advertisers currently using VAC could experience substantial gains by shifting to Demand Gen campaigns. According to Google’s internal data, combining video and image assets within Demand Gen can drive 20% more conversions at the exact cost per action (CPA) compared to relying on video alone. This data reinforces the value of leveraging diverse ad formats to enhance user engagement and conversions.
Key benefits of the upgrade
- Expanded reach: Demand Gen campaigns will enable advertisers to engage with up to 3 billion monthly users across Google platforms such as YouTube, Discover, and Gmail, giving brands unprecedented access to potential customers.
- Creative flexibility: Advertisers can now run both video and image ads within a single campaign, with granular insights available to optimize creative strategies. This flexibility allows for more dynamic and engaging ad experiences tailored to different audiences.
- Enhanced targeting capabilities: With Lookalike segments, Demand Gen campaigns help brands reach new audiences that are similar to their existing customer base, increasing the chances of conversion. Advanced targeting features will enable advertisers to fine-tune their reach and ensure their ads land in front of the right users.
- Consistent performance: Google assures a smooth transition for advertisers accustomed to video-only assets in VAC. Advertisers who have already made the shift to Demand Gen have reported performance on par with VAC, ensuring a reliable handover without risking results.
Transition timeline
- Now: Advertisers are encouraged to start testing Demand Gen campaigns and explore its advanced features to become familiar with the new format.
- Early 2025: Google will launch a migration tool to facilitate manual upgrades from VAC to Demand Gen, providing an option for advertisers to control the transition process.
- March 2025: Creation of new VACs will be disabled, ensuring that all new campaigns are set up under the Demand Gen framework.
- Q2 2025: Google will automatically upgrade all remaining VACs to Demand Gen, completing the transition.
Success stories
To showcase the benefits of Demand Gen, Google highlighted the case of DoorDash, a leading U.S.-based food delivery service. According to Google, DoorDash saw a 15x higher conversion rate and a 50% improvement in CPA after adopting Demand Gen over VAC. This example underscores how the new campaign format can drive more efficient and impactful advertising results.
Bottom line
This update reflects Google’s strategic effort to align advertising solutions with evolving consumer behaviors and preferences. As video and image-based formats continue to dominate digital engagement, the shift to Demand Gen provides advertisers with the tools to keep pace with these trends.
For advertisers, the best course of action is to begin testing Demand Gen alongside VAC now to gain a competitive edge before the official upgrade. With the ability to drive stronger, more cost-effective results, early adoption of Demand Gen could put brands ahead of the curve in the ever-competitive digital landscape.
