Why Demand Gen works best alongside Performance Max for ecommerce

When Google launched Demand Gen campaigns in 2023, they were positioned as a way to build deeper engagement across YouTube, Discover, and Gmail. 

At the time, they felt experimental, sitting between awareness and performance.

Since then, Demand Gen has improved significantly. 

The creative flexibility and audience control now make it a campaign type I use regularly for ecommerce clients. 

It has helped us scale revenue in a controlled way, maintaining brand consistency and enabling creative testing while still driving conversions.

In practice, Demand Gen converts best when it is set up strategically alongside Performance Max and Search.

Choosing control over automation

Demand Gen campaigns are best suited to advertisers who need more control. 

One of the main challenges and criticisms of Performance Max is its lack of transparency and manual input. 

When control over targeting, placements, or creative is a necessity, Demand Gen is the better option.

In Performance Max, ads are automatically built from the assets you upload, with Google’s AI testing and combining them to find what performs best. 

This makes supplying strong creative assets nonnegotiable.

For instance, a fitness brand could set up multiple asset groups divided by product category – one for leggings, another for shorts, and another for vests. 

This structure helps direct content toward relevant audiences, although true control remains limited.

By contrast, Demand Gen provides far greater flexibility. 

You can upload, preview, and edit ad combinations before launch, tailoring each creative for its placement. 

For example, separate YouTube ads can be uploaded for in-feed, in-stream, and Shorts. 

This level of control is ideal for ecommerce brands that value creative precision, message testing, and maintaining a strong visual identity.

Dig deeper: The Google Ads Demand Gen playbook

How Demand Gen and Performance Max work together

Running Demand Gen alongside PMax can be extremely effective when you understand how each fits within the customer journey. They complement each other rather than compete.

Demand Gen builds awareness and interest by engaging audiences higher in the funnel, often before they start actively searching for products. 

Whereas, PMax focuses on converting lower-funnel users who are ready to buy.

For example, a fitness retailer might use Demand Gen to reach potential customers with lifestyle videos and discovery ads that showcase their latest activewear ranges. 

Once that user begins researching or showing purchase intent, PMax steps in with tailored Shopping and Search placements to drive the sale.

You can also set up feed-only PMax campaigns, where you supply only a product feed within the asset group.

This restricts PMax activity to Shopping placements, keeping it focused on direct conversion opportunities.

Meanwhile, Demand Gen runs across YouTube, Gmail,…