The Demand Gen Delusion: Why Most Brisbane Businesses Are Burning Cash
Google’s Demand Gen (the evolution of Discovery ads) is currently the most misunderstood tool in the digital marketer’s kit. Most agencies treat it like a 'set and forget' automated campaign, dumping search-heavy assets into a visual-first ecosystem and wondering why their CPA is three times higher than their Search campaigns.
At Local Marketing Group, we’ve audited dozens of accounts in the Brisbane and Gold Coast region over the last year. The data is clear: 80% of Demand Gen failures stem from treating it like a secondary search channel rather than a high-intent social competitor. If you aren't optimising for the unique visual nature of YouTube, Shorts, and Discover, you aren't running Demand Gen—you’re just running expensive, low-performing display ads.
1. The 'Search-First' Creative Trap
The biggest mistake we see is the recycling of Search assets. Demand Gen is a visual-first medium. If your ads feature stock photography of people shaking hands or generic 'Call Us Now' banners, you have already lost.
Data from late 2025 shows that campaigns using vertical video (Shorts) specifically designed for mobile consumption see a 42% lower cost-per-acquisition than those relying on standard landscape video. In the Australian market, where mobile penetration is exceptionally high, failing to provide a native mobile experience is a cardinal sin. If your creative doesn't stop the scroll within the first 1.5 seconds, Google’s algorithm will penalise you with higher floor prices for placements.
2. Feeding the Machine Junk Data
Demand Gen relies heavily on Google’s AI to find your audience. However, AI is only as good as the signals you provide. A common error is using 'Soft Conversions' (like page views or 30-second site visits) as primary optimisation goals.
When you tell Google to find 'visitors,' it will find the cheapest, least-engaged traffic possible. To make this work, you must optimise for 'Hard Conversions.' For local service providers—whether you’re a plumber in Chermside or a law firm in the CBD—you need to understand that calls are the only metric that matters. Optimising for anything less in a Demand Gen environment results in a high volume of 'ghost' leads that never pick up the phone.
3. Ignoring the Landing Page Disconnect
We see a recurring pattern: a highly engaging, visual Demand Gen ad leads to a dry, text-heavy landing page designed for 2018. This friction kills your conversion rate. If the visual aesthetic of your ad doesn't match the landing page, the user bounces instantly.
Stop blaming the traffic when the problem is the destination. Many businesses fall for the landing page experience lie and assume that if they have the right keywords, the page will work. In Demand Gen, it’s about the vibe and the speed. If your mobile load time is over 3 seconds, your Demand Gen budget is effectively a donation to Google.
4. Narrow Targeting is Killing Your Scale
In Search, we preach tight targeting. In Demand Gen, being too restrictive with your audience segments often results in the 'Learning Phase' death spiral. Because Demand Gen uses lookalike segments (now called 'Seed Lists'), you need to give the algorithm enough data to breathe.
Instead of layering ten different interests, use your existing customer list (first-party data) as a seed and let Google find the patterns. However, ensure you aren't just bidding on your competitor's brand terms within these segments; you want to find new people who look like your best customers, not just scavenge for existing demand.
5. The Attribution Oversight
Finally, the most analytical mistake: looking at Last-Click attribution. Demand Gen is designed to sit at the top and middle of the funnel. If you only judge it by how many people clicked the ad and bought immediately, you’ll likely turn off your most profitable awareness engine.
Check your 'Assisted Conversions' in Google Ads. You’ll often find that while Demand Gen didn't get the final click, it was the first touchpoint that introduced the customer to your brand before they searched for you by name three days later.
How to Fix Your Demand Gen Strategy Today
1. Audit your assets: Replace every stock photo with authentic, high-quality video or imagery of your actual team and work in Brisbane. 2. Switch to 'Maximize Conversions': But only once you have at least 30-50 conversions tracked per month to give the AI enough data. 3. Use Seed Lists: Upload your actual customer emails (hashed) rather than guessing interest categories. 4. Test Vertical Video: If you don't have a 9:16 video, don't run the campaign.
Stop settling for mediocre 'automated' results. Demand Gen is a powerful tool, but only if you provide the high-quality creative and clean data it requires to function.
Ready to stop wasting your ad spend and start generating real demand? Contact Local Marketing Group today for a data-led audit of your Google Ads account.