Google Demand Gen Campaigns Get Location Targeting Controls
Demand Gen Just Got More Precise
Reaching the right audience is important—but reaching them in the right location is critical.
With this update, Google Demand Gen campaigns get location targeting controls, giving advertisers greater precision over where their ads are shown. This enhancement brings Demand Gen closer to other Google Ads campaign types while maintaining its strength as an AI-powered, visual discovery solution.
What Are Demand Gen Campaigns?
Demand Gen campaigns are Google’s AI-first discovery campaigns designed to drive awareness and consideration across high-engagement placements such as:
- YouTube (Shorts, in-stream, in-feed)
- Google Discover
- Gmail
They replaced Discovery campaigns and focus on visual storytelling, automation, and audience signals to influence users earlier in the funnel.
What’s New: Location Targeting Controls Explained
Google has introduced explicit location targeting and exclusions for Demand Gen campaigns.
Advertisers Can Now:
- Target countries, regions, cities, or postal codes
- Exclude locations that don’t align with business goals
- Align campaigns with stores, service areas, or sales territories
Demand Gen Location Controls: Before vs After
| Feature | Before | After |
|---|---|---|
| Location targeting | Minimal | Full control |
| Regional budget focus | Limited | Strong |
| Local relevance | Indirect | Direct |
| Omnichannel alignment | Low | High |
Why This Update Matters for Advertisers
1. Improved Relevance & Engagement
Location-aware delivery ensures ads reach users where the offer applies, improving engagement signals and overall ad quality.
2. Better Budget Efficiency
Advertisers can now reduce wasted spend in low-performing regions and focus budgets where conversions are more likely.
3. Stronger Local & Regional Marketing
This update is ideal for multi-location brands, franchise businesses, and region-specific campaigns.
4. Smarter AI Optimization
Adding geographic data improves Google’s machine learning models for delivery, creative selection, and conversion prediction.
How to Set Up Location Targeting in Demand Gen Campaigns
Step-by-Step Setup
- Open Google Ads
- Select your Demand Gen campaign
- Go to Campaign Settings
- Click Locations
- Add target locations and exclusions
- Save and monitor performance by region
Best Practice: Combine location targeting with first-party audiences, custom segments, and conversion goals to strengthen optimization signals.
Actionable Optimization Strategies
What Advertisers Should Do Now
- Segment campaigns by region or market size
- Use localized messaging and visuals in creatives
- Align targeting with store locations and service areas
- Track engagement, assisted conversions, and branded search lift
Quick Optimization Checklist
| Location targeting enabled | ? |
| Location exclusions applied | ? |
| Localized creatives tested | ? |
| Regional performance reviewed | ? |
Real-World Use Cases
Retail Brand: Targets metro areas with same-day delivery while excluding non-serviceable regions to improve ROAS.
SaaS Company: Runs Demand Gen campaigns in selected countries with region-specific messaging.
Education Provider: Promotes city-based programs using geo-targeted YouTube Shorts ads.
Conclusion: AI-Powered Reach Meets Geographic Precision
With this update, Google Demand Gen campaigns get location targeting controls, closing the gap between AI-driven discovery and real-world relevance.
Advertisers can now reach the right audience, in the right location, with the right message.
