Google Ads is rolling out some of the most significant changes to the platform in years. These changes will reshape how businesses approach digital advertising, using a mix of AI-driven tools, better targeting options, and a distinct focus on creative flexibility. Find out everything you need to know about the new features coming to Google Ads and how to use them to achieve your business goals.
How Demand Gen is Changing
The big keyword for Google’s approach to Demand Gen in 2025 is consolidation. Google has set a definitive timeline for sunsetting Video Action campaigns. Advertisers will no longer be able to create Video Action campaigns starting in April, and Google has advised them to upgrade manually to Demand Gen as soon as possible.
The core idea behind this consolidation is to unify video advertising tools under Demand Gen while adding powerful new features to make video ads more effective than ever. Demand Gen campaigns deliver 58% higher ROAS than Video Action campaigns, and we expect to see even better metrics with the latest updates.
New Channel Controls
The massive updates to Google Ads’ channel controls will have a massive impact on targeting. The enhanced channel controls across YouTube, Gmail, and Discover balance out Demand Gen’s AI-powered campaign optimization with additional flexibility for advertisers. Considering YouTube ads already deliver 2.3x higher long-term returns than paid social, it’s fair to say this Google Ads change is incredibly promising.
How does it work? Going forward, advertisers can strategically choose ad placements on YouTube videos, Shorts, Discover, and Gmail based on their objectives. For example, a brand targeting quick engagement might prioritize ads on Shorts, compared to a surface like Gmail.
Another new Google Ads feature is the addition of Google Display Inventory (GDI) to Demand Gen. This Google Ads update opens up new opportunities for cross-channel optimization, with GDI connecting advertisers to more than 3 million websites and apps, over 90% of the internet population.
New Creative Tools
Demand Gen’s creative toolkit will receive several powerful new additions in 2025, aligning it more with the visual-first content preferred by modern audiences. Let’s take a closer look at these creative changes to Google Ads:
- New Formats: Demand Gen now supports a wider variety of video and image formats for YouTube ads. Advertisers can also create 9:16 vertical image ads perfectly optimized for the Shorts audience, drawing buyers in with more immersive full-screen creatives.
- Video Enhancements: A November Google Ads update introduced the ability to create videos with different aspect ratios using the original source video. These enhancements will be even more powerful in 2025, with advertisers getting the option to take long-form videos and create shorter versions at scale. This will reduce editing times significantly and allow businesses to respond faster to changing consumer preferences.
Retail-Specific Enhancements
Creating more intuitive, seamless customer journeys with Google Ads Demand Gen campaigns just got a lot easier. The new retail-specific features include:
- Improved experiences in Demand Gen with product feeds: Businesses with a Google Merchant Center account can use this feature to improve product discovery with their ads. If a potential buyer clicks on an ad, they’ll be able to view complete product details and transition to other products seamlessly without needing to leave the app.