Google is testing conversations launched from YouTube ads and releasing multimodal video creation, shortening the path between impression, contact and purchase.

Google brings Demand Gen to messaging and turns the ad into the start of a conversation

Google is testing conversations launched from YouTube ads and releasing multimodal video creation, shortening the path between impression, contact and purchase.

What happened

On August 27, Google announced new features for its Demand Gen campaigns, aimed at generating leads and reaching shoppers on YouTube and other inventory.
The company is testing YouTube ads from which users can start a conversation with a brand in messaging apps.
For travel, Demand Gen will be able to show activities, events, real-time offers and hotels personalized to the audience.
Asset Studio’s multimodal video creation became generally available, with a workflow that goes from storyboard to horizontal and vertical assets.

Why it matters

For performance teams, the click no longer necessarily means a visit to the site. If the conversation starts within the ad journey, measuring only web sessions and conversions describes an ever smaller part of the funnel.
For small businesses that sell through messaging, the change can cut steps between discovery and contact. It also forces them to sort out something less glamorous: response times, lead tagging and attribution of sales that end outside the site.
Creative production is also compressed. If a single tool generates horizontal and vertical versions, producing more assets stops being the bottleneck. Deciding which ones deserve budget becomes the bottleneck again.

The number

30%: the average increase in conversions or conversion value that Google attributes to the improvements introduced in Demand Gen during the second half of 2025.

Context

Demand Gen occupies Google and YouTube visual inventory and competes for a share of the budget that used to be split more clearly between video, social media and search campaigns. Adding messaging brings those borders even closer.

What’s next

Google is keeping messaging from YouTube ads in the testing phase.
Travel features and real-time offers will be added within Demand Gen.
Multimodal video creation is now generally available.

For years, the ad led to a page. Now it can lead to a conversation, with the page watching from the bench. Attribution will have to learn the same journey.

Sources

Google Ads & Commerce — August’s Demand Gen Drop: https://blog.google/products/ads-commerce/demand-gen-drop-august-2026/

Edited by Rodrigo Cornejo.