Now, Google’s Demand Gen campaigns are rewriting the playbook. For dealers who want to stretch their ad dollars further, reach qualified buyers, and spark meaningful engagement, the shift from Pre-Roll to Demand Gen represents more than an update. It’s a new era in automotive paid search strategies.
From Pre-Roll to Progress
Pre-roll ads were a staple for automotive advertisers for years. They appeared before YouTube videos and offered a straightforward way to stay visible. But they also relied heavily on impressions and passive views.
Demand Gen campaigns take a completely different approach. Instead of simply showing ads to anyone watching a video, they use audience intent signals and Google AI to reach people most likely to engage. This results in fewer wasted impressions and stronger performance overall.
What the Data Shows
Our team analyzed results across multiple Dealer Authority clients to see how Demand Gen compared to traditional video pre-roll campaigns. The difference was dramatic.
Key Observations
- Clicks increased by more than 3,600% across all accounts.
- Cost-per-click dropped by 96% on average.
- Views decreased, but click-through rates soared.
- Only Demand Gen campaigns generated conversions.
Optional PPC Team Quote Placeholder:
“Demand Gen isn’t about more views. It’s about better engagement. We’re finally seeing video creative drive real traffic and leads.” – Shannon Eishel, Director of Paid Search
Why Demand Gen Outperforms Traditional Video Ads
1. Engagement Over Impressions
Pre-roll campaigns were built for reach. Demand Gen campaigns are built for action. While pre-roll videos often counted a “view” after a few seconds, Demand Gen requires stronger interaction before the metric registers. Dealers are now getting fewer views, but those views mean more.
2. Smarter Targeting Through Intent Signals
Google’s AI combines audience behavior, browsing activity, and shopping intent to find people who are actively considering vehicles. That means your ads show up in front of users who are researching makes, models, and local dealerships.
3. More Efficient Ad Spend
Demand Gen’s click-through rate improvements come with drastically lower CPCs. For one Dealer Authority client, clicks dropped from $16.85 to just $0.30, transforming campaign scalability.
Demand Gen vs PMax – Which Fits Your Dealerships Strategy?
While both Demand Gen and Performance Max (PMax) use Google AI, they serve different purposes.
|
Feature |
Demand Gen |
PMax |
|
Goal |
Awareness and engagement |
Conversions and leads |
|
Format |
Video and image assets across YouTube, Discover, and Gmail |
Full-funnel automation across all Google properties |
|
Control |
Manual creative management |
Fully automated |
|
Best for |
Dealers wanting control over ad messaging |
Dealers focused on pure lead generation |
Both can complement each other. Many dealers may choose to run Demand Gen for awareness and engagement while using PMax for lower-funnel lead capture.
Real-World Dealer Results
Each Dealer Authority client saw significant improvements when switching to Demand Gen:
- Client A: +1,312% clicks, +1,024% CTR, 4 conversions.
- Client B: +3,829% clicks, +6,167% CTR, CPC dropped from $16.85 to $0.30.
- Client C: +2,093% clicks, 95% cheaper CPC, CPM nearly cut in half.
- Client D: +7,392% clicks, +5,660% CTR, CPC down from $11.40 to $0.15.
These shifts prove that even with fewer “views,” dealers are getting more of what matters: website traffic, qualified engagement, and first signs of conversion lift.
What This Means for Dealerships in 2025
For dealers still relying on pre-roll campaigns, the data speaks for itself. Demand Gen offers:
- Lower costs and higher engagement
- Smarter targeting based on real shopper behavior
- Early performance gains that lay the foundation for future conversions
It’s not just an upgrade. It’s the next logical step for modern automotive advertisers.
“With a sizable increase in the CTR, total clicks, and quality leads, Demand Gen is the clear winner. We have seen Demand Gen campaigns deliver strong results across all of our accounts, and I highly recommend it for anyone wanting to run video ads.” – Shannon Eshel, Director of Paid Search
The Road Ahead
Dealers who test and adapt early will gain a competitive edge as Google continues to refine its ad ecosystem. The next step is clear:
- Run A/B tests between PMax and Demand Gen to measure performance.
- Use creative tailored to in-market auto shoppers.
Track engagement and conversion quality, not just views.
Out with the Old, In with the Smarter
Video advertising in automotive isn’t disappearing; it’s evolving. Demand Gen isn’t just the successor to pre-roll. It’s a more innovative, more efficient tool that helps dealers turn awareness into measurable engagement.
For car dealers ready to modernize their Google ad strategy, 2025 is the year to make the switch.
Talk with Dealer Authority’s PPC experts to see how your dealership can transition from outdated video campaigns to data-driven Demand Gen strategies that deliver results.
