I’m thrilled to sit down with Milena Traikovich, a seasoned Demand Gen expert who has dedicated her career to helping businesses craft impactful campaigns that attract high-quality leads. With her deep expertise in analytics, performance optimization, and lead generation, Milena is the perfect person to guide us through Google’s latest Demand Gen updates. In this conversation, we dive into the innovative features designed to refine customer acquisition, enhance video advertising with AI, improve mobile app engagement through deep linking, and elevate product promotions with visual assets. Let’s explore how these updates can transform advertising strategies.
How did Google come up with the “Demand Gen Drops” updates, and what’s the main purpose behind rolling them out?
Google introduced the “Demand Gen Drops” as a way to keep advertisers in the loop with the latest tools and features for demand generation campaigns. The idea is to bundle significant updates into a cohesive package, making it easier for marketers to stay updated and leverage new opportunities. The second drop, in particular, focuses on enhancing customer acquisition, optimizing bidding strategies, and incorporating cutting-edge tech like AI for video ads. The goal is to help advertisers connect with their audiences more effectively, especially during critical times like the holiday shopping season.
Can you break down the “New Customer Value Mode” in Demand Gen campaigns and explain how it strikes a balance between new and returning customers?
Absolutely. The “New Customer Value Mode” is one of Google’s updated customer acquisition goals. It prioritizes bidding toward new customers while still maintaining some engagement with returning ones. Essentially, it’s a balanced approach—Google’s algorithm focuses on attracting fresh faces to your brand but doesn’t completely ignore the value of repeat customers. This mode is great for businesses that want growth through new leads without losing touch with their existing base.
What sets the “High Value New Customer Mode” apart, and which businesses might find it most useful?
The “High Value New Customer Mode” takes things a step further by allowing advertisers to set different bidding priorities for high-value new prospects versus regular new customers or existing ones. It’s tailored for identifying and targeting those potential customers who are likely to bring significant long-term value. I’d say this is ideal for businesses with a clear customer lifetime value model, like subscription services or high-ticket item sellers, where securing premium new clients can make a huge difference to the bottom line.
Tell us about the “New Customer Only Mode” and how its exclusive focus on new customers is impacting advertisers’ results.
The “New Customer Only Mode” is laser-focused—it optimizes ad bids exclusively for new customers, using Google’s audience detection tools to avoid spending on existing ones. This mode is all about expansion and building a broader customer base. Advertisers using this have seen impressive results, like an 11.5% improvement in their new customer ratio alongside a 3% reduction in acquisition costs. It’s a powerful option for brands in growth mode who want to prioritize fresh leads over re-engagement.
Speaking of those stats for “New Customer Only Mode,” what do an 11.5% improvement in new customer ratio and a 3% cost reduction really mean for advertisers?
Those numbers are a big deal. An 11.5% improvement in new customer ratio means that out of every hundred people your ads reach, you’re converting a significantly higher portion of new folks into customers. That’s pure growth. Pair that with a 3% reduction in acquisition cost, and you’re spending less per new customer acquired. For advertisers, this translates to a more efficient budget—getting more bang for your buck while expanding your audience. It’s especially impactful for businesses with tight marketing budgets or aggressive growth targets.
Let’s shift gears to the deep linking update for iOS. What is “Web to App Connect,” and how does it drive traffic to mobile apps?
“Web to App Connect” is Google’s new deep linking feature for iOS, designed to create a seamless bridge from web ads to specific pages or sections within a mobile app. Instead of just directing users to an app’s homepage, it takes them directly to relevant content or actions—like a product page or checkout screen. This cuts down on friction, making it easier for users to engage with your app right away, which can significantly boost conversion rates for businesses relying on mobile traffic.
How do you see this deep linking feature improving conversion rates for businesses with mobile apps?
Deep linking through “Web to App Connect” can be a game-changer for conversion rates. By guiding users straight to the most relevant part of an app, you’re removing extra steps that often cause drop-offs. Imagine clicking an ad for a specific product and landing directly on its purchase page instead of navigating through an app’s menu. That streamlined experience can increase the likelihood of completing a purchase or signing up. For businesses, especially in e-commerce or services, this means more efficient ad spend and happier users.
Can you walk us through the update to Target CPC bidding and how it helps advertisers measure performance across platforms?
Sure. Google’s update to Target CPC (Cost Per Click) bidding allows advertisers to set consistent bidding goals and compare performance metrics across different ad platforms using the same parameters. This uniformity makes it easier to see where your budget is working hardest—whether it’s on Google, YouTube, or other integrated platforms. It’s about clarity; advertisers can now optimize campaigns with a clearer picture of how clicks translate to value across their entire digital strategy, rather than guessing based on fragmented data.
What’s your perspective on the new AI-generated video ad option for YouTube campaigns, and how does it utilize advertisers’ existing assets?
I think the AI-generated video ad option is pretty exciting. Google uses its AI to take the assets you already have—like images, logos, or text—and turn them into professional-quality videos in various formats and orientations. It’s tailored for YouTube, aligning with viewer engagement trends to maximize impact. This means you don’t need a big production budget to create video content; the AI handles the heavy lifting, crafting ads that look polished and resonate with audiences based on your input.
Do you believe this AI video feature lowers the barrier for small businesses to advertise on YouTube, and if so, how?
Definitely. Video advertising can be intimidating for small businesses due to the cost and expertise needed for production. With this AI-generated option, there’s no need for a film crew or editing software—Google’s tech creates effective videos at no extra cost using assets you already have. This levels the playing field, allowing smaller players to compete with bigger brands on YouTube, reach wider audiences, and test video ads without risking a huge budget. It’s a low-risk, high-reward opportunity.
Google mentions that these AI-generated videos align with YouTube viewer engagement trends. Can you explain what that means for ad effectiveness?
What Google means is that their AI analyzes patterns in how YouTube viewers interact with content—what grabs attention, what keeps them watching, and what prompts action. The videos it generates are built to match those trends, like optimal length, pacing, or visual styles that resonate with specific demographics. For ad effectiveness, this is huge because it increases the likelihood that viewers will not only watch but also engage—whether that’s clicking through, liking, or buying. It’s about crafting ads that feel native to the platform.
Let’s touch on the product display feature in Demand Gen campaigns. How does integrating with a Google Merchant Center feed create visual product assets for ads?
This feature is fantastic for e-commerce advertisers. By connecting your Demand Gen campaign to a Google Merchant Center feed, Google can automatically pull product images, prices, and details to create visual assets for your ads. These aren’t generic placeholders—they’re tailored representations of your actual catalog, seamlessly integrated into your promotions. It’s a dynamic way to showcase what you’re selling directly in the ad, making it more relevant and visually appealing to potential customers.
In your view, how might these automatically generated visual product assets make promotions stand out to potential customers?
Visual product assets can make a huge difference in capturing attention. When a potential customer sees an ad featuring the exact product they’re interested in—with a clear image, price, and maybe even a discount—it feels personal and actionable. Unlike text-heavy ads, these visuals tap into instant recognition and desire, especially on platforms where users scroll quickly. They can turn a casual browser into a buyer by making the product the star of the ad, which is incredibly effective for impulse purchases or seasonal campaigns.
With the holiday shopping season approaching, do you think these Demand Gen updates are well-timed, and which feature might have the biggest impact?
I think the timing couldn’t be better. The holiday season is when consumer spending spikes, and advertisers need every edge to stand out in a crowded market. These updates—like enhanced customer acquisition modes, AI-generated videos, and visual product assets—equip businesses to target new shoppers and present compelling offers efficiently. If I had to pick one with the biggest potential impact, I’d say the product display feature tied to Google Merchant Center. It allows for visually stunning, product-specific ads that can drive holiday sales by showcasing gift ideas or deals right in front of eager buyers.
What’s your forecast for the future of Demand Gen campaigns with innovations like AI and deep linking becoming more integrated?
I’m very optimistic about where Demand Gen campaigns are headed. With AI becoming more sophisticated, we’re likely to see even smarter ad creation and targeting—think hyper-personalized content generated in real-time based on user behavior. Deep linking will probably evolve to offer even more seamless experiences, perhaps integrating with emerging tech like augmented reality for in-app previews. Overall, I expect these tools to make advertising more intuitive and efficient, helping businesses of all sizes connect with customers in ways that feel natural and impactful. It’s an exciting space to watch.
