If you have tested Demand Gen inside Google Ads and walked away disappointed, you are not alone. Many advertisers reach the same conclusion after a few weeks of spend and little to show for it. That frustration is usually what leads people to search for why Google Demand Gen ads don’t work in the first place.
The reality is more nuanced. Google Demand Gen ads do not fail because the product is broken. They fail because most businesses use them with the wrong expectations, the wrong setup, and the wrong way of measuring success.
This article explains why Google Demand Gen ads don’t work for most brands, where things go off track, and how to decide whether Demand Gen belongs in your paid media mix at all.
Why Google Demand Gen Ads Don’t Work for Most Businesses
At a high level, the answer to why Google Demand Gen ads don’t work comes down to intent mismatch.
Demand Gen is not designed to capture people who are actively searching for a solution. It is designed to reach people while they are browsing YouTube, Gmail, or Discover. These users are not in buying mode. They are consuming content.
When advertisers expect bottom funnel performance from a top and mid funnel campaign type, disappointment is almost guaranteed. This is the most common reason why Google Demand Gen ads don’t work in real accounts.
Treating Demand Gen Like Search Ads
Search ads are intent driven. Demand Gen ads are discovery driven.
One of the biggest reasons why Google Demand Gen ads don’t work is that advertisers treat them like Search or Performance Max. They expect fast conversions, strong last click attribution, and immediate ROAS.
Demand Gen is not built for that. It is built to introduce your brand earlier in the journey, shape consideration, and influence future behaviour.
When Demand Gen is judged using the same metrics as Search, it almost always looks weak.
Budgets Are Too Small to Learn
Another major reason why Google Demand Gen ads don’t work is insufficient budget.
Demand Gen relies on reach, frequency, and volume to learn. Small daily budgets spread across large audiences do not generate enough signal for the algorithm to optimise effectively.
In many audits, Demand Gen campaigns are launched with budgets that would struggle to support a Search campaign, let alone an upper funnel format. Without volume, there is no learning. Without learning, performance stalls.
This leads advertisers to shut campaigns down early and reinforces the belief that Demand Gen does not work.
Demand Gen Is Launched Too Early
Demand Gen is not a starter campaign.
A key reason why Google Demand Gen ads don’t work is timing. Businesses often launch Demand Gen before they have:
- A proven offer
- Validated audiences
- Strong Search or Performance Max performance
- Conversion tracking that reflects real value
Demand Gen works best as a supporting campaign, not a foundation. It amplifies what is already working. It does not fix broken fundamentals.
If Search and Performance Max are underperforming, Demand Gen will not save the account.
Creative Is Treated as an Afterthought
Demand Gen is a visual, creative led format. Yet creative is often the weakest part of the setup.
Another reason why Google Demand Gen ads don’t work is that advertisers reuse Search copy, generic images, or auto generated assets and expect results.
Demand Gen ads compete with YouTube Shorts, influencer content, and personalised recommendations. If your creative does not stop the scroll, nothing else matters.
Strong Demand Gen performance requires:
- Attention grabbing hooks
- Clear visual storytelling
- Messaging aligned to awareness or consideration
- Assets built specifically for each placement
Without this, Demand Gen campaigns struggle regardless of targeting or budget.
Optimised Targeting Is Used Incorrectly
Optimised targeting can be powerful, but it is often misused.
A common reason why Google Demand Gen ads don’t work is that optimised targeting is enabled when advertisers are trying to protect specific segments like remarketing or high value audiences.
When optimised targeting expands too aggressively, segmentation breaks down. Messaging becomes diluted. Results become harder to interpret.
Optimised targeting works best when the goal is broad discovery. It works poorly when precision is required.
Measurement Focuses on the Wrong Data
Measurement is one of the most misunderstood aspects of Demand Gen.
A critical reason why Google Demand Gen ads don’t work is that performance is judged almost entirely inside the Google Ads interface using last click data.
Demand Gen influences behaviour across the account, not just within its own campaign. It can:
- Increase brand search volume
- Improve retargeting pool quality
- Reduce CPCs in Search
- Lift conversion rates elsewhere
If none of this is measured, Demand Gen looks unprofitable even when it is contributing meaningfully.
This is why experienced teams evaluate blended CPA, lift, and whole account performance instead of isolated campaign metrics.
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Demand Gen Needs More Time Than Advertisers Allow
Demand Gen is not instant response advertising.
Another reason why Google Demand Gen ads don’t work is impatience. Campaigns are often paused within weeks, long before learning stabilises.
Because Demand Gen targets colder audiences, learning cycles are longer. The impact compounds over time.
Most successful Demand Gen tests run for at least 60 to 90 days before meaningful conclusions are drawn. Shorter timeframes almost always understate value.
When Google Demand Gen Ads Actually Make Sense
Understanding why Google Demand Gen ads don’t work also requires knowing when they can work.
Demand Gen tends to perform better when:
- Search and Performance Max are already strong
- Budgets allow for consistent reach and frequency
- Creative is built specifically for discovery
- Measurement looks beyond last click
- Expectations are aligned with funnel stage
When these conditions are met, Demand Gen can strengthen the entire account, even if it does not appear to be the top converter on its own.
If you are unsure how Demand Gen fits alongside Search, Performance Max, or other paid channels, working with an online advertising team that understands full funnel online advertising strategy can help avoid costly missteps.
Why This Matters for Vancouver Based Brands
In competitive markets like Vancouver, relying only on bottom funnel Search limits growth.
However, that does not mean Demand Gen is always the answer. Local brands often see why Google Demand Gen ads don’t work when messaging is too generic or disconnected from local context.
Demand Gen performs best when it supports a broader strategy that includes local relevance, strong brand signals, and consistent creative across channels.
If you are testing Demand Gen without those foundations, results will likely disappoint.
A More Honest Way to Think About Demand Gen
The most accurate explanation for why Google Demand Gen ads don’t work is not that they fail universally. It is that they are frequently misused.
Demand Gen is not designed to replace Search. It is not designed to produce instant ROAS. It is designed to influence demand earlier and support growth later.
When evaluated through that lens, performance often looks very different.
If you want help deciding whether Demand Gen belongs in your mix, or whether your budget is better spent elsewhere, you can always contact us for an objective review.
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Partner With Brandcamp for Google Ads
So, why Google Demand Gen ads don’t work for most advertisers comes down to expectations, execution, and evaluation.
They fail when they are launched too early, funded too lightly, measured too narrowly, and judged too quickly. They work best when they support strong fundamentals, use compelling creative, and are evaluated across the entire account.
Demand Gen is neither a silver bullet nor a waste of money. It is a specialised tool that only works when used for the right job.
If you are questioning why Google Demand Gen ads don’t work in your account and want a clear answer tailored to your business, reach out and contact us or explore our online advertising services.
Frequently Asked Questions About Google Demand Gen
Why Google Demand Gen ads don’t work for most businesses?
Because they are treated like bottom funnel campaigns when they are designed for awareness and consideration.
Why Google Demand Gen ads don’t work with small budgets?
Because they require enough reach and frequency to generate learning and signal.
Why Google Demand Gen ads don’t work when measured by ROAS alone?
Because they influence conversions indirectly and are undervalued by last click attribution.
Why Google Demand Gen ads don’t work without strong creative?
Because Demand Gen is visual first and competes with native content, not search results.
Why Google Demand Gen ads don’t work early in an account’s lifecycle?
Because they perform best after Search and Performance Max have already validated demand.
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