Google Ads’ recent Demand Gen “Drop” landed with some major shifts for marketers and ecommerce managers, doubling down on bidding strategy, New Customer Only (NCO) goals, and product feed integration with target ROAS (tROAS) – with YouTube becoming even more central as a growth driver. Here’s what you need to know about the changes and how to get ahead.
What’s New in Demand Gen?
The recent updates spotlighted three core enhancements:
Bidding Optimisations: New tROAS options and smarter AI-powered bid strategies to drive more profitable conversions.
New Customer Only Goals: Granular goal types now allow for targeting specifically new customers, delivering clearer incremental value.
Product Feed Use with tROAS: Enables catalogue-driven creatives across YouTube and Google’s ecosystem, with revenue-driven bidding.
These updates are especially relevant as platforms lean into automation and first-party data, with YouTube cemented as the linchpin for upper-funnel growth.
Implications for Marketers and Ecommerce
Bidding Gets Sharper—But Needs Strategy
The new tROAS tools are a double-edged sword. Google’s automation can efficiently filter spend towards users that will convert at your desired margin – but only if your feed, conversion tracking, and goals are watertight. Relevance and feed health are more important than ever, as AI is only as strong as its input data.
YouTube Moves Centre Stage
With Demand Gen, Google is transforming YouTube from a pure awareness channel to a performance engine. Expect increased inventory flexibility: product feeds now fuel in-stream and Shorts placements, and tROAS ensures you chase value, not vanity metrics. For retail and ecommerce, shoppable video becomes a true powerhouse.
New Customer Only Targeting Lifts Incrementality
NCO goals finally let you specify and bid more assertively for first-time customers, aligning spend with acquisition objectives. For ecommerce, this means clearer demarcation between prospecting and retention, allowing you to scale prospecting budgets with greater confidence.
How to Make the Most of These Changes
Optimise Your Product Feed Relentlessly
Audit feed quality and completeness: titles, images, attributes, GTINs, and stock status must be flawless to maximise AI potential.
Ensure feed segmentation to match audience signals and bid strategies, such as grouping high vs. low-margin SKUs separately.
Set Up for New Customer Only Goals
Integrate robust first-party tagging, and sync CRM or purchase data to ensure accuracy in distinguishing new vs. repeat buyers.
Use audience exclusions wisely – remarketing and NCO should not compete for the same eyeballs.
Lean into YouTube with Shoppable UX
Adapt creative to be commerce-first: overlays, clickable CTAs, and feed assets should blend branding and utility.
Test across different YouTube formats, especially Shorts, as Demand Gen expands your reach and placement diversity.
Prioritise Measurement and Incrementality
Regularly validate conversion tracking and feed diagnostics in Google Ads and Analytics 4.
Report on incremental value, not just volume – focus on true acquisition metrics enabled by NCO and tROAS.
Use Audience Signals and Experiment
Leverage custom segments and affinity audiences for higher match rates and intent.
Run experiments – A/B test various creative, bid, and feed combinations to find efficient paths to incremental growth.
The Demand Gen changes emphasise blending precision automation with creative, commerce-driven strategy – putting YouTube at the heart of your performance plan. By tightening your feed, embracing NCO, and adopting smart tROAS bidding, you’re set to extract the most value from Google’s ever-expanding video-first inventory. Now’s the time to take these levers and drive real, measurable ecommerce growth.
