Google has refreshed its Gmail advertising options in 2025. What was once only available under Demand Gen campaigns has now been refined so you can target Gmail placements directly. For brands that want to meet customers right inside their inboxes, this channel deserves strategic attention.
If you run e-commerce, B2B services, or SaaS, Gmail Ads could be a cost-effective middle ground between search intent and social display. Here's a detailed breakdown of how they work, how to set them up, and what you must do to get results.
What Gmail Ads Are
A Gmail Ad appears directly inside a user's inbox, usually in the "Promotions" or "Social" tabs.
You can show:
- A headline and short teaser text (like an email subject line)
- An image or small logo
- A label that indicates the message is sponsored
When clicked, the ad expands into a full-page email-like experience. From here you can include calls-to-action, multiple products, carousel images, or video.
Think of a Gmail Ad as a hybrid between a display ad and a marketing email — but with the ability to reach users even if they haven't opted into your mailing list.
Why They Matter in 2025
Email remains a high-ROI channel. According to Litmus, email marketing delivers an average return of £36 for every £1 spent.
But inbox competition is high. Open rates fluctuate, spam filters tighten, and unsubscribes are constant.
Gmail Ads allow you to:
- Extend reach beyond your subscriber list
- Re-engage lapsed audiences directly in the inbox
- Test creative formats that mimic native email promotions
- Combine first-party data with Google's targeting systems
If you rely heavily on search or shopping ads, Gmail Ads add a new dimension: targeting in the inbox before intent shifts elsewhere. This aligns perfectly with broader digital strategy planning, making them a smart addition to integrated campaigns.
Placement Options and Formats
You can run three main ad types:
- Single Image Ads – One creative asset, multiple headlines and descriptions.
- Carousel Ads – Multiple cards within the expanded view. Each card links to a unique URL. Ideal for retailers with several SKUs to feature.
- Product Feed Ads – Pulls directly from Google Merchant Centre. Promotes multiple items with pricing and shipping details.
Video can also run on Gmail placements, although these currently surface mostly on mobile apps.
Targeting Inside Gmail
Because Gmail Ads live within Demand Gen campaigns, you inherit the same audience targeting capabilities. You cannot target by keyword, topic, or placement.
Options include:
- Google audiences – In-market, affinity, detailed demographics, life events
- Custom segments – Based on user searches, sites, and apps
- Your data – Remarketing lists, customer uploads, YouTube viewers
- Lookalike audiences – People similar to your existing customers
- Basic demographics – Age, gender, parental status
- Location settings – Country to postcode-level precision
One strategic note: if you regularly send marketing emails, upload your unsubscribe list and exclude it from Gmail Ads. Showing promotions to users who opted out of your email list creates frustration and damages brand trust. Businesses already using email automation tools will find this exclusion process easier to manage.
Bidding Models
You control spend with the bidding strategies available in Demand Gen:
- Maximise Clicks – Drive as many inbox openings as possible from cold audiences.
- Target CPC – Balance control of average click cost across impressions.
- Maximise Conversions / Target CPA – Ideal for retargeting warm audiences where conversion likelihood is higher.
- Maximise Conversion Value – Focuses on revenue, suitable for e-commerce stores with feed-driven ads.
If you are launching Gmail Ads for the first time, start with clicks to test messages and creative. Shift to conversions once a proven audience emerges.
How to Launch a Gmail-Only Campaign
Step-by-step setup in Google Ads:
- Log into Google Ads and create a new campaign.
- Select "Create a campaign without guidance."
- Choose Demand Gen as the campaign type.
- Define conversion goals.
- Enter a campaign budget and select a bidding strategy.
- In ad group settings, go to Channels.
- Deselect YouTube, Discover, and Display Network.
- Leave Gmail checked as the only placement.
- Build creative assets using the supported formats.
Always preview campaigns across devices. Gmail ads can look different on desktop versus mobile.
Creative Principles That Work
Users experience Gmail Ads in two parts: teaser and expanded ad. Each requires clarity.
Teaser Phase
- Treat the teaser like a subject line. Make it sharp and accurate.
- Use brand name visibility. People are cautious clicking inbox promotions without context.
- Test between plain-text and image-based teasers. Different audiences respond differently.
Expanded Phase
- Ensure a strong single call-to-action above the fold.
- Use concise copy and clear offers. Avoid overcrowding with multiple messages.
- Retailers: keep product carousels under 10 items for scannability.
- SaaS: experiment with explainer videos or infographics.
Example: A fashion retailer could run a Gmail Carousel highlighting five seasonal products. Each card links to specific product pages, cutting steps between interest and purchase.
Measuring Gmail Ads Performance
Google Ads tracks Gmail Ads slightly differently:
- Impressions – When the teaser shows in inbox.
- Engagements – When a user clicks to expand the ad.
- Engagement Rate – Engagements ÷ Impressions.
- Clicks – When a user clicks to site after expansion.
- Conversions – Actions taken after clicking to site.
Tiered analysis method:
- If engagement rate is low, test new headlines or swap teaser visuals.
- If engagement is high but clicks are low, review expanded content and calls-to-action.
- If clicks are strong but conversions are weak, focus on landing page alignment.
Track at all levels. Engagement is unique to Gmail Ads and tells you if people even want to open your message.
Strategic Use Cases
Where Gmail Ads slot into a growth strategy:
- E-commerce – Showcase new products or seasonal collections in carousel or product feed format.
- SaaS – Promote free trials or explainer content to mid-funnel audiences.
- Service businesses – Highlight key offers like insurance packages or training sessions.
- Event campaigns – Drive registrations with reminder ads directly in inboxes.
An example: a D2C skincare brand combines email promotions with Gmail Ads targeting lookalike audiences. Subscribers get emails, while similar Gmail users who haven't subscribed see supplementary ads in Promotions tab. The result is wider reach but with consistent branding.
Budget Allocation
How much should you spend? Gmail Ads are still niche compared to search or shopping.
Suggested allocation:
- 10–15% of overall Google Ads spend for early testing
- Increase if cost-per-acquisition is within target
