What it takes to make disc gen work for B2B and ecommerce

Demand Gen marks a shift in Google ads to visual advertising beyond keywords and text. Relying on traditional techniques for testing wastes budget, hurts performance, and limits opportunity. To be successful, you have to think more like a social marketer than a search marketer.

At SMX Next, Industrious Marketing owner Jack Hepp explained why many businesses struggle with demand-driven campaigns – especially in B2B and lead generation – while also sharing insights related to ecommerce.

Understanding the Shift: From Purpose to Disruption

Demand Gen reflects Google’s shift from targeted marketing to visual, discovery-based campaigns.

Instead of targeting users who are actively searching for your service, you reach them as they browse YouTube, Gmail, or the Discovery feed.

This changes your way of doing things: visual art becomes the new keyword, instead of the usual index.

A common misconception in the Demand Gen program

Using outdated search strategies can lead to Demand Gen failure. Four major mistakes:

• Expect lower funnel CPAs from mid-funnel traffic.
• A very broad application, “spray and pray” guide.
• Good performance, general art.
• Not knowing how to optimize without the wrong keywords.

Success requires a social marketing mindset.

Campaign structure: Understanding governance

Demand Gen uses a two-tier structure.

• Campaign level settings control extensive parameters such as bidding strategy, conversion goals, and device targeting.
• Ad group level settings manage audiences, locations, and channels.

Each ad group learns independently—data does not transfer—allowing for precise audience segmentation with optimized creativity.

It creates art based on disruption

You should stop their scrolling within 3-4 seconds. Your art should grab attention immediately, speak to a specific pain point, and present your solution.

Unlike search ads – where users are actively looking for you – Demand Gen disrupts browsing, so your message must be compelling and problem-focused.

Visual alignment in the customer journey

Match your offer to audience readiness.

• Cold audiences need educational content like free guides or diagnostic tools.
• Warm audiences respond to courses, webinars, and comparison tools.
• Hot audiences are perfect for demos and direct purchase offers.

Misaligning them – like pushing demos on a cold audience – guarantees failure from the start.

The power of problem-oriented creativity

Standard ads with stock images and basic headlines are scrolled past. Effective creative uses bold headlines, striking visuals, and problem-focused messages.

• For example, “43% of cyberattacks target small businesses” addresses a specific pain point, making the ad stand out and encourage engagement instead of scrolling.

Bidding and budgeting strategies

Demand Gen uses campaign goals rather than traditional bidding strategies: conversion-focused, click-focused, or conversion-value-focused.

• Aim for 50+ conversions per month and budget 10–15 times your target CPA to build enough data.
• With click-based bidding, set a budget based on desired traffic volume and target CPC.

Demand Gen relies heavily on data, so hitting these limits is critical to performance.

Can Demand Gen work on small budgets?

Yes, with strategic planning.

Focus on middle or upper funnel audiences and optimize for MQLs instead of lower funnel conversions. This helps you reach 50+ monthly conversions for data density, even with a small budget.

Align your goals, direction, and budget to generate enough conversion data.

Building the right audience

Avoid two extremes:

• A very broad audience (billions of impressions) for which Google can identify targets.
• The audience is so small (a few thousand views) that you cannot build data density.

The sweet spot: start with custom segments based on search terms or competitor websites, then put similar segments and strategic data on the first company. Avoid advanced targeting at first — it works best to boost already successful campaigns.

The role of art in guidance

Your creativity shapes how Google targets them. People who engage with your ads tell Google who to show next.

Performance increases when your creativity speaks to your ideal customer profile. Match messages to buyer stage – cold audiences need different messages than hot ones.

Release of tactics

Use surgical excision, not scope. It’s tempting not to include the wrong keywords, but not to include too much narrows your audience.

Focus only on clear constants (eg, certain age groups, locations, or audiences you know won’t respond). Give Google a place to find engaged users within your boundaries, rather than shrinking to the point of inactivity.

Development: Where to focus

Besides bad keywords, improve by using three tools: creativity, audience, and offers. Explore multiple formats (video, image, carousel) and styles (UGC, testimonials, problem-focused messaging). Continue to improve functionality with new hooks and data points.

Test offers to match audience readiness — cold audiences need informative content, while hot audiences need direct CTAs.

Prioritize post-click optimization: improve landing pages, strengthen tracking with CRM integration, and ensure clean data feeds Google’s learning.

A real world lesson

A communications company targeting B2B managed IT services has produced strong results by aligning all three factors.

• Offered: Interactive questions that show businesses how managed IT can reduce costs.
• Directing: Custom segments based on proven search terms and competitor website visitors.
• Art: Problem-focused messaging about cybersecurity threats to small businesses.

Results:

• $10 cost per MQL.
• 3.8% conversion rate.
• 40% of the respondents were SQLs.
• 20% increase in all SQL.

Important takeaways

As you plan your next campaign:

• Match your creativity with your customer and their stage in the journey.
• Target the right audience in the right place on that journey.
• Check and prepare creativity and contributions to find out what is relevant and drives action.