2025 Google Ads Trends: Demand Gen & YouTube Shorts – The New Creative Frontier for UK Advertisers

In 2025, Google Ads is rapidly expanding its Demand Gen campaigns across YouTube, Discover and Gmail. With YouTube Shorts becoming one of the fastest-growing ad placements in the UK, brands that master data-driven creative and short-form storytelling will dominate the mid-funnel.

The Rise of Demand Gen Campaigns

Google has fully rolled out Demand Gen, its AI-powered upgrade to Discovery Ads and Video Action Campaigns. The update merges YouTube (especially Shorts), Discover and Gmail into a single campaign type, using Google’s AI to predict what users are likely to engage with next — even before they start searching.

For UK marketers, this shift is huge. Demand Gen now sits between Performance Max (bottom-funnel) and Search (high-intent), giving brands a way to influence decisions earlier in the customer journey.

Unlike traditional Display, Demand Gen uses advanced audience signals, product feeds, and visual creative to drive action. With Google integrating Gemini-powered creative tools, brands can now auto-generate video and image assets directly inside the platform — a major efficiency win for small and mid-size UK businesses.

Why YouTube Shorts Matters for UK Brands

YouTube Shorts has exploded in daily watch time across the UK, rivalling TikTok and Instagram Reels. In 2025, Shorts is now a key inventory source for both Performance Max and Demand Gen campaigns.

The key difference? Attention span. Shorts ads must hook viewers within the first 1-2 seconds. Viewers expect authentic, mobile-first content — not polished TV-style videos. The best performing brands in the UK are running 6-15 second vertical videos with fast-paced editing, clear value statements, and localised messaging that feels “native” to UK culture.

For example, a PPF studio might showcase a 10-second before-and-after clip with the caption “Oxford’s glossiest Tesla Model Y.” A home-improvement brand might display a quick transformation of decking installation with UK weather text overlays.

The 2025 UK Playbook for Demand Gen Success

1. Build Shorts-First Creative Libraries

Design 9:16 videos in 6-15 second cuts, each with a strong opening frame, text overlays, and clear branding.

Don’t repurpose square videos — instead, use vertical storytelling optimised for mobile.

2. Segment by Intent Stage

Use channel controls to separate prospecting audiences on YouTube and Discover from remarketing audiences on Gmail and Display.

This reduces fatigue and improves frequency control — especially useful for UK regional targeting (e.g., London vs Manchester).

3. Leverage First-Party Data & Product Feeds

Import CRM lists and sales data into Google Ads to help AI find look-alike audiences.

For e-commerce, integrate high-quality product feeds so Demand Gen can auto-match products to user interest signals.

4. Measure and Optimise

Use Google’s new YouTube placement reporting to track performance across Shorts, In-Feed, and In-Stream.

Shift budget toward placements that actually drive assisted conversions rather than vanity metrics like views.

The Bigger Picture: AI Meets Creativity

The new era of PPC in the UK is no longer just about keywords — it’s about visual narratives driven by AI and data. Demand Gen and YouTube Shorts give brands a unique chance to connect emotionally with customers before they search. Those who invest in creative diversity, feed accuracy and data-driven targeting will own the mid-funnel in 2025 and beyond.

How 1 Click Magic Helps UK Advertisers Win with Demand Gen

At 1 Click Magic, we help UK brands turn creative ideas into high-performance Google Ads campaigns. Our team specialises in building AI-optimised Demand Gen and Performance Max strategies that combine data, storytelling and UK market insights.

We can help you with:

YouTube Shorts production & ad strategy – we craft mobile-first ads built for attention and conversion.

Campaign architecture & data syncing – integrating CRM lists, product feeds and first-party signals for smarter audience targeting.

Performance Max integration – ensuring your short-form assets work across multiple Google placements without waste.

Creative testing and reporting dashboards – so you see which videos and placements actually convert UK buyers.

Our goal is simple: to make sure every pound you spend on Google Ads drives real brand growth and ROI in 2025’s AI-powered advertising landscape.

Book a free consultation with 1 Click Magic today and let’s build a Demand Gen plan that fits your UK market and budget.