# Google Demand Gen Campaign Structure: A Decision Sequence

> Tower33 breaks down the Demand Gen structure that drives performance — from prospecting splits to creative grouping. Get the blueprint.

**Published:** 2026-10-02 | **Updated:** 2026-11-03 | **Author:** victorsoares
**URL:** https://tower33.com/articles/google-demand-gen-campaign-structure/
**Type:** post

**Categories:** Google Ads

![Google Demand Gen Campaign Structure: A Decision Sequence](https://tower33.com/articles/wp-content/uploads/sites/107/2026/10/1790852078054-458727b53ab0-1024x572.webp)

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## Content

*Written by: Anthony Miller, Founder, Tower 33 | Last updated: November 2, 2026*

## Key Takeaways

- Google Demand Gen campaign structure is an architecture decision. Performance comes from audience fluency and smart network use, not hidden configurations.
- The core tension sits between Google’s push for consolidation to feed machine learning and advertisers’ need for segmentation, control, and clear reporting.
- Most accounts fail at the extremes. Structures are either too fragmented to build conversion volume or so consolidated that cold and warm audiences blur together.
- This article walks through what to build on day one, what to collapse in week three, and how to sequence structural changes.
- Tower33 runs this structure for clients through founder-led strategy, pre-engagement audits, and weekly reporting that highlights what needs to change.

[Get deeper Demand Gen structure breakdowns from Tower33](https://tower33.com/join-strategy-newsletter/?utm_term=google-demand-gen-campaign-structure&utm_campaign=ai_growth_agent)

## The Two-Campaign Blueprint: Prospecting And Remarketing Split

The default Google Demand Gen setup is one prospecting campaign and one remarketing campaign, kept separate. These two campaigns serve different audiences, use different creative, and carry different conversion expectations. Their reporting should stay separate because blended reporting lets a strong remarketing program hide a weak prospecting one.

Prospecting reaches users who have not interacted with the brand. Remarketing reaches users who already have. [Google’s own Demand Gen guidance supports a clear prospecting-versus-remarketing distinction](https://business.google.com/es-all/think/consumer-insights/demand-gen-guide) while still preserving enough conversion volume for automated bidding. When both live in one campaign, the algorithm naturally favors the easier conversion from warm audiences and prospecting quietly starves.

A single campaign works in one narrow case. Very small budgets or a single tight audience can sit in one campaign when splitting would push both sides below the conversion volume needed for bidding to work. [Search Engine Land reports that Smart Bidding typically needs 30 to 50 conversions per campaign per month to exit learning and make reliable predictions](https://searchengineland.com/how-campaign-structure-shapes-google-ads-performance-481332). Splitting a low-volume account in two means neither campaign ever learns. In that case, consolidate and use ad group audience splits to keep reporting visibility.

The risk is simple. A blended campaign where remarketing converts well and prospecting converts poorly will still show a healthy average cost per acquisition (CPA). Leadership sees a green number while the prospecting program underperforms in the background.

## Demand Gen Ad Group Structure: Split By One Primary Dimension

Ad group structure works best when one primary dimension drives the split. Splitting by audience and creative angle at the same time is the most common structural failure in Demand Gen accounts. That approach scatters conversions across too many ad groups, and no single ad group gathers enough signal for bidding to learn.

Audience-led splits create clean reporting and clearer budget calls. When one audience converts at a very different rate than another, an audience-led structure exposes that quickly. Creative-angle-led splits help test distinct messages against a shared audience. That approach works well when the audience is defined but the messaging strategy still needs validation.

The practical rule is to pick the dimension that answers the question you need answered right now. If that question is which audience converts, split by audience. If the question is which message converts, split by creative angle. Trying to answer both questions in the same campaign with separate ad groups stretches conversion volume too thin and leaves both questions unresolved.

The tradeoff between the two approaches comes down to what each one makes visible:

- **Audience-led:** clear per-segment CPA and cleaner budget decisions, with slower creative testing because message variation is secondary. Volume risk stays low when audiences are large enough.
- **Creative-angle-led:** faster message testing and quicker winners, while audience performance stays less clear and the same audience can be split across multiple ad groups, which raises volume risk.

[Google added per-ad-group channel controls to Demand Gen in 2025](https://support.google.com/google-ads/answer/17061251), which lets advertisers limit delivery to specific surfaces like YouTube in-stream, in-feed, Shorts, Discover, Gmail, Maps, and the Display Network. That control lives at the ad group level, so the ad group split also decides how granular your channel reporting can be.

[See more real ad group structures in the newsletter](https://tower33.com/join-strategy-newsletter/?utm_term=google-demand-gen-campaign-structure&utm_campaign=ai_growth_agent)

## When To Merge Demand Gen Ad Groups

Merge ad groups when they share an audience and neither gathers enough conversion volume to guide bidding. [Google’s Demand Gen documentation recommends merging ad groups that fall below roughly 30 conversions in 30 days](https://zest.agency/en/blog/google-ads-demand-gen) so the campaign can build stronger learning signals. Below that level, automated bidding behaves cautiously, swings CPAs, and can stay stuck in learning.

The merge sequence follows a clear order because each merge can restart the learning phase. A smart sequence keeps restarts to a minimum.

1. Confirm the conversion action is correct and deduplicated. A merge cannot repair a broken signal and will only combine the noise.
2. Merge ad groups that share an audience before merging campaigns. This move is less disruptive and often fixes the volume issue without touching campaign-level structure.
3. Consolidate campaigns only when the merged audience logic still holds. That means the prospecting and remarketing distinction no longer applies or the budget cannot support the split.
4. Adjust bidding strategy last. Shifting from Maximize Conversions to target CPA (tCPA) to solve a volume issue reverses the right order. The bid strategy needs clean data first, then a target.

Bid strategy changes feel like action, yet they rarely solve low-volume problems on their own. [Consolidation increases signal density and can shorten the learning period for automated bidding](https://adssensor.com/blog/google-ads-campaign-structure). Moving between bid strategies on thin data only moves the problem around.

## Channel And Placement Controls: How To Use YouTube, Discover, Gmail, And Display

Once the ad group split is set, the next lever is where those ad groups actually serve. [Demand Gen runs across YouTube (Shorts, in-feed, in-stream, Home feed, Watch Next, and YouTube Search), Discover, Gmail, Google Maps, and the Google Display Network](https://ppc.land/demand-gen). [Per-ad-group channel controls, added in 2025, let advertisers restrict delivery to specific surfaces](https://kickads.co/en/demand-gen-complete-guide) instead of always buying the full bundle.

The practical rule for isolation is simple. Split a channel into its own ad group when its creative requirements or performance profile differ in a meaningful way from the rest. [Google recommends 9:16 vertical video for YouTube Shorts placements in Demand Gen](https://rocketium.ai/academy/all/google-demand-gen-creative-specs). [Gmail only supports image ads and does not allow video](https://kickads.co/en/demand-gen-complete-guide). If your creative set lacks a vertical video cut, leaving Shorts in the same ad group as in-stream placements forces the system to adapt landscape creative for Shorts, which trails a purpose-built asset.

Default channel isolation fragments conversion volume in the same way over-segmented ad groups do. [Channel controls let you restrict an ad group to specific channels, with all channels as the starting point](https://sprites.ai/blog/google-demand-gen-campaigns). Restrict channels when creative only works in one place or when reporting shows a channel taking spend without conversions. Run all channels together until the data gives a clear reason to separate them.

[See how Tower33 sequences channel isolation](https://tower33.com/join-strategy-newsletter/?utm_term=google-demand-gen-campaign-structure&utm_campaign=ai_growth_agent)

## Campaign Structure By Budget Level And Business Model

Lower budgets call for fewer campaigns and fewer ad groups. Consolidation protects signal. [An account with 90 conversions a month can support roughly three campaigns](https://adssensor.com/blog/google-ads-campaign-structure). Spreading that same volume across ten campaigns leaves each with about nine conversions, which sits well below the level needed for reliable automated bidding. The prospecting and remarketing split only works when both campaigns can reach the earlier 30-conversion guideline on their own.

Higher budgets can sustain the prospecting and remarketing split plus audience-led ad groups. Conversion volume supports the extra segmentation, and the added reporting clarity earns its keep.

Lead generation accounts should use a conversion action tied to qualified or converted leads. A structure that optimizes toward raw form fills will find plenty of low-quality submissions that never turn into revenue. The account architecture should make it easy for the algorithm to chase the right signal.

E-commerce accounts depend on clean purchase conversion data and clear brand versus non-brand separation. [Blending brand and non-brand spend hides what actually performs because brand terms carry the average](https://www.linkedin.com/pulse/google-ads-86-revenue-growth-58-less-spend-anthony-miller-gimlc/). Demand Gen for e-commerce should keep high-funnel and bottom-funnel conversion signals in separate optimization environments.

## Creative Grouping And Format Requirements Per Ad Group

Once structure is set, creative needs to match it. [Each ad group needs image assets in three ratios: horizontal 1.91:1, square 1:1, and vertical 4:5, with 9:16 recommended for YouTube Shorts](https://kickads.co/en/demand-gen-complete-guide). Include the equivalent video orientations wherever video runs. [Google reports that advertisers who used creative variety across horizontal, vertical, and square ratios saw over 23% higher conversions on average](https://business.google.com/us/accelerate/announcements/demand-gen-creative-best-practices) (Google internal data, September 2025–May 2026).

Decide the ad group split first, then build the creative set to serve that structure. Building ad groups around individual assets reverses that order and turns a creative choice into a structural one. An ad group centered on a single video asset fragments conversion volume the same way any other over-segmentation does.

[Gmail placements are image-only and do not support video ads](https://rocketium.ai/academy/all/google-demand-gen-creative-specs). Any ad group that includes Gmail in its channel controls needs a complete image asset set, even when the campaign leans heavily on video elsewhere. Plan the asset mix at the ad group level so every selected channel can run with a full set.

## Prerequisites And Sequencing: Demand Gen On Top Of Proven Foundations

Demand Gen works as a mid-funnel engine. It performs best when it sits on top of working Search or Performance Max programs, clean conversion tracking, and a nurture path for leads that are not ready to buy yet. Launching Demand Gen without those foundations in place reflects a sequencing issue, and no campaign architecture can compensate for that gap.

Over-reliance on automation without strategic oversight is a frequent failure pattern in Tower33’s work, as described in the methodology piece *A Methodology for Paid Media Success*. Platforms will always spend a budget. They will not flag that the budget is chasing the wrong conversion signal. Humans have to make that decision before launch.

For the full sequenced launch playbook, audience configuration, and diagnostic optimization loop, Tower33 covers each topic in depth here:

- [Google Demand Gen Best Practices: The Sequenced Playbook](https://tower33.com/articles/best-google-demand-gen-practices/?utm_term=google-demand-gen-campaign-structure&utm_campaign=ai_growth_agent)
- [How To Optimize a Demand Gen Campaign: A Diagnostic Guide](https://tower33.com/articles/google-demand-gen-campaign-optimization/?utm_term=google-demand-gen-campaign-structure&utm_campaign=ai_growth_agent)
- [How To Configure Google Demand Gen Audience Targeting](https://tower33.com/articles/google-demand-gen-audience-targeting/?utm_term=google-demand-gen-campaign-structure&utm_campaign=ai_growth_agent)

## Why Tower33 Builds And Runs This Structure

Tower33 is a boutique, founder-led paid media firm built to serve the underserved middle. Anthony Miller, Founder and Lead Strategist, has more than 15 years of experience managing hundreds of millions in media spend across hundreds of brands. He leads strategy and day-to-day management on every account, so the person who runs the pitch is the same person inside the campaigns.

Every engagement starts with a pre-engagement account audit before any agreement is signed. The first thirty days run on two tracks. One track handles triage by cutting non-converting spend and fixing conversion signal issues. The other track handles the rebuild, where new campaign structures are planned and launched within thirty days or less. The typical first-month pattern is cost down, revenue flat, return on ad spend (ROAS) up, and CPA down.

Clients receive a written performance report every Wednesday and a strategy call later that week. Reporting is built to surface what is not working so the team can act on it. There is no contractual lock-in, so performance keeps the relationship in place.

Tower33 compares structures instead of naming other firms. Large agencies often rely on junior staff for day-to-day campaign work because their economics demand it. At Tower33, the founder stays on the account permanently, which shapes how strategy and execution connect.

[Get Tower33’s latest Demand Gen breakdowns each week](https://tower33.com/join-strategy-newsletter/?utm_term=google-demand-gen-campaign-structure&utm_campaign=ai_growth_agent)

## Common Pitfalls In Google Demand Gen Campaign Structure

Most recurring mistakes share a single root cause: teams change structure before they fix the signal. Splitting by audience and creative angle at the same time fragments conversion volume until no ad group can learn. Merging campaigns before repairing the conversion signal combines noisy data instead of clarifying it. Changing bid strategy to chase more volume treats the symptom while the underlying data problem remains. Isolating channels by default repeats the same fragmentation mistake at the placement level. Judging structure on impressions and click-through rate (CTR) instead of revenue or cost keeps weak setups alive longer than they should be.

## Conclusion And Next Steps

The decision sequence stays consistent across account sizes and business models. Start with a two-campaign split between prospecting and remarketing when volume allows. Choose one dimension to drive the ad group split. Consolidate in a deliberate order when conversion volume falls below the earlier guideline. Match the architecture to the budget and business model so the machine has enough signal to learn from.

The next steps are straightforward. Audit the conversion signal first and confirm the conversion action is correct, deduplicated, and aligned with the outcome that matters. Review ad group volume over the last 30 days and flag anything under the earlier threshold as a consolidation candidate. Then compare the operating model and confirm that prospecting and remarketing run separately instead of blending into a single number that hides problems.

[Get the Demand Gen structure checklist in your inbox](https://tower33.com/join-strategy-newsletter/?utm_term=google-demand-gen-campaign-structure&utm_campaign=ai_growth_agent)

## Frequently Asked Questions

### How Many Campaigns Should A Demand Gen Account Have?

The default is two campaigns, one for prospecting and one for remarketing. That split works when both campaigns can reach the earlier 30-conversions-in-30-days guideline on their own. At lower budgets or lower conversion volumes, a single campaign with audience splits at the ad group level is the better call. Let conversion volume decide how many campaigns the account can support instead of the number of audience segments or creative angles.

### How Many Ad Groups Should A Demand Gen Campaign Have?

Use as few ad groups as the structure needs. Each ad group should center on one dimension, either an audience or a creative angle, and should be large enough to gather meaningful conversion data. Three to five ad groups per campaign works well for most accounts. Going far beyond that range raises the risk that no ad group reaches the learning threshold.

### When Should You Merge Demand Gen Ad Groups That Are Not Converting?

Merge when ad groups share an audience and neither reaches the earlier 30-conversion guideline over 30 days. Before merging, verify that the conversion action is correct and deduplicated so you do not combine a broken signal. Merge ad groups before you merge campaigns. Revisit bid strategy only after structural and signal issues are fixed, not as the first move when volume is low.

### Should Prospecting And Remarketing Be Separate Campaigns?

In most cases, yes. The audiences differ, the creative requirements differ, and the conversion expectations differ. Blending them in one campaign produces a blended CPA that can look healthy even when prospecting underperforms because remarketing conversions carry the average. The exception is an account where splitting would push both sides below the conversion volume needed for automated bidding. In that case, consolidate and use ad group audience splits to keep reporting clear.

### How Does Demand Gen Structure Differ From Performance Max?

[Performance Max runs across every Google surface, including Search and Shopping, uses audience signals instead of hard targeting, and controls bidding and placements with limited override](https://ppc.land/demand-gen). [Demand Gen excludes Search, keeps per-ad-group channel selection, and gives direct control over audiences and creative](https://ppc.land/demand-gen). Structurally, Demand Gen looks closer to a Meta campaign with campaign, ad group, and ad levels. Performance Max behaves more like a single automated unit with asset groups. Demand Gen needs deliberate structural choices, while Performance Max leans on asset group and conversion signal choices.

### How Does Structure Change For Lead Gen Versus E-Commerce?

Lead generation structures should follow a conversion action tied to qualified or converted leads. That setup keeps the algorithm from chasing form fills that never become revenue. E-commerce structures should focus on clean purchase conversion data and clear brand versus non-brand separation so high-funnel and bottom-funnel signals do not mix in one optimization environment. In both cases, structure follows the conversion signal, so get the signal right first and then build the architecture around it.

### What Conversion Volume Does Demand Gen Need To Optimize Well?

[Industry analyses commonly cite roughly 30 conversions in 30 days per campaign as the working threshold for target CPA and target ROAS bidding strategies](https://adssensor.com/blog/google-ads-campaign-structure), with a [learning period that often runs 7 to 14 days](https://support.google.com/google-ads/answer/1722022). [Google also recommends waiting for at least 50 conversions before evaluating a campaign](https://zest.agency/en/blog/google-ads-demand-gen). [Value-based bidding strategies like target ROAS need at least 50 conversions with value in the past 35 days](https://ppc.land/demand-gen). Below that level, automated bidding tends to behave conservatively, swing CPAs, and struggle to clear learning. The structural takeaway is direct: keep the number of campaigns aligned with the conversion volume the account can consistently produce.

## What to Read Next

- [How To Configure Google Demand Gen Audience Targeting](https://tower33.com/articles/google-demand-gen-audience-targeting/)
- [Google Demand Gen Best Practices: The Sequenced Playbook](https://tower33.com/articles/best-google-demand-gen-practices/)
- [How To Optimize a Demand Gen Campaign: A Diagnostic Guide](https://tower33.com/articles/google-demand-gen-campaign-optimization/)
- [Demand Gen Location Targeting: Settings & Strategy](https://tower33.com/articles/google-demand-gen-location-targeting/)
- [How To Structure Google Shopping Campaigns By Category](https://tower33.com/articles/structure-google-shopping-campaigns-category/)

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      - **Text:** Use as few ad groups as the structure needs. Each ad group should center on one dimension, either an audience or a creative angle, and should be large enough to gather meaningful conversion data. Three to five ad groups per campaign works well for most accounts. Going far beyond that range raises the risk that no ad group reaches the learning threshold.
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      - **Text:** Merge when ad groups share an audience and neither reaches the earlier 30-conversion guideline over 30 days. Before merging, verify that the conversion action is correct and deduplicated so you do not combine a broken signal. Merge ad groups before you merge campaigns. Revisit bid strategy only after structural and signal issues are fixed, not as the first move when volume is low.
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    **Question:**

    - **Name:** How Does Demand Gen Structure Differ From Performance Max?
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      - **Text:** Performance Max runs across every Google surface, including Search and Shopping, uses audience signals instead of hard targeting, and controls bidding and placements with limited override. Demand Gen excludes Search, keeps per-ad-group channel selection, and gives direct control over audiences and creative. Structurally, Demand Gen looks closer to a Meta campaign with campaign, ad group, and ad levels. Performance Max behaves more like a single automated unit with asset groups. Demand Gen needs deliberate structural choices, while Performance Max leans on asset group and conversion signal choices.
    **Question:**

    - **Name:** How Does Structure Change For Lead Gen Versus E-Commerce?
      **Answer:**

      - **Text:** Lead generation structures should follow a conversion action tied to qualified or converted leads. That setup keeps the algorithm from chasing form fills that never become revenue. E-commerce structures should focus on clean purchase conversion data and clear brand versus non-brand separation so high-funnel and bottom-funnel signals do not mix in one optimization environment. In both cases, structure follows the conversion signal, so get the signal right first and then build the architecture around it.
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      - **Text:** Industry analyses commonly cite roughly 30 conversions in 30 days per campaign as the working threshold for target CPA and target ROAS bidding strategies, with a learning period that often runs 7 to 14 days. Google also recommends waiting for at least 50 conversions before evaluating a campaign. Value-based bidding strategies like target ROAS need at least 50 conversions with value in the past 35 days. Below that level, automated bidding tends to behave conservatively, swing CPAs, and struggle to clear learning. The structural takeaway is direct: keep the number of campaigns aligned with the conversion volume the account can consistently produce.

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  - **Description:** Tower33 breaks down the Demand Gen structure that drives performance — from prospecting splits to creative grouping. Get the blueprint.
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    - **Name:** Anthony Miller
    - **JobTitle:** Founder
    - **Description:** 20+ years in customer acquisition, digital marketing, search, social, analytics, and technology.Anthony has worked with hundreds of brands, managed hundreds of millions in ad spend, and founded both Tower33 and Travel Outside. Today, he works with select partners building and running customer acquisition ad programs through strategy, and hands-on management.
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      - **Name:** Tower 33
      - **Url:** https://tower33.com/
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    - **Url:** https://tower33.com


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## Citations

- [Google Local Services Ads Requirements: A Complete Guide](https://tower33.com/articles/google-local-services-ads-requirements/)
- [How To Optimize Google PMax Campaigns That Actually Convert](https://tower33.com/articles/optimize-google-pmax-campaigns/)
- [Best Agency for Google Search Campaigns: A Buyer’s Guide](https://tower33.com/articles/best-agency-google-search-campaigns/)
- [Google Shopping Budget Allocation: A Step-by-Step Guide](https://tower33.com/articles/google-shopping-campaign-budget-allocation/)
- [The Best Google Ads Reporting Agency Lets You Audit First](https://tower33.com/articles/best-google-ads-reporting-agency/)

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