Google launches Meridian and Demand Gen updates to improve ad performance

Google recently announced the general availability of Meridian, providing a holistic view of marketing effectiveness across channels to optimise budgets and enhancements in Demand Gen Campaigns aimed at boosting ad performance and maximising impact, as mentioned in a Google blogpost.

Meridian, an open-source Marketing Mix Model (MMM) designed to help marketers optimise advertising budgets by providing deeper insights into campaign effectiveness across various channels. The tool, tested with global brands, addresses limitations of traditional MMMs in measuring digital media performance, including Google Search and YouTube. Using Bayesian causal inference, Meridian combines real-world data with prior knowledge to assess both short-term conversions and long-term brand impact. It also factors in external elements like seasonality, pricing, and promotions, enabling businesses to make more informed marketing decisions.

Brands like Finder, an Australian financial company with presence in the UK, US and Canada, garnered actionable insights with Meridian because of its ability to be customised to their needs.

"At Finder, our mission is to help people make better financial decisions and we try to apply that approach to everything we do — including our own marketing. With Meridian, we now have much more confidence in our ability to measure the impact of our investments. This has moved us from investing time and resources into creating linear regression models from scratch, to an agile, best-in-class solution that our team can still own and manage. The insights we've gained have reinforced the additional value that YouTube drives beyond what's visible with standard conversion tracking." — Jennifer Snell, GM marketing and loyalty, Finder.

A key feature of Meridian is its transparency, allowing users to modify its open-source framework to suit specific business needs. Marketers can customise the model to optimise KPIs such as sales, conversions, and website visits. Google has also introduced a partner program with over 20 certified vendors trained to assist brands in implementing the model. The tool is available for download on GitHub, and Google plans to continue refining it with new features to adapt to the evolving digital advertising landscape.

Additionally, Google has introduced new updates to Demand Gen campaigns, enhancing ad placement control, creative customization, and retail-focused features. Advertisers can now precisely choose where their ads appear across YouTube, Discover, and Gmail, with support for YouTube Shorts and Google Display inventory. To improve creative impact, Demand Gen will support 9:16 vertical image ads on Shorts and offer automated video editing tools to optimize content for different formats. Additionally, new product feed integrations will provide real-time product availability and seamless transitions between product pages, aiming to drive both online and in-store sales.

Google is also rolling out new reporting tools in Google Ads to help advertisers compare Demand Gen performance with paid social campaigns. The platform will soon include view-through conversion tracking to align with social advertising metrics. Meanwhile, Google is phasing out Video Action Campaigns, with automatic upgrades to Demand Gen beginning in July. Advertisers are encouraged to transition early using the upgrade tool, which applies historical campaign data to maintain performance. Brands like Marks & Spencer have already reported improved ROAS and lower CPA using Demand Gen, positioning it as a key tool for performance-driven digital marketing.