How to Run Gmail Ads in 2026
Gmail Ads are back in a practical way. Instead of the old standalone Gmail ad format, the modern approach is to run Gmail placements through Demand Gen, and you can now choose Gmail as your only channel if you want inbox-only reach. Demand Gen is built to show visually rich ads across Google’s feeds, including Gmail.
Want a clean Gmail Ads launch without wasting budget? Book a free tracking and audience audit with Y77.ai and get a ready-to-launch setup checklist.
What are Gmail Ads in 2026?
Gmail Ads appear directly inside a user’s inbox, typically in the Promotions and Social tabs.
They usually show first as a teaser (like an email preview). When someone clicks the teaser, the ad expands into a full email like experience, and then the user can click through to your website. Google describes this as a common two click path (teaser expands, then click out).
If you are unsure whether Gmail Ads are a fit for your funnel, ask Y77.ai for a quick feasibility review (we will tell you yes or no, and why).
Why run Gmail Ads?
Gmail is a great middle funnel surface because it feels native and personal, but still works like paid media. Demand Gen campaigns also support multi-format creative and feed-based formats, which makes Gmail Ads useful for:
- Re-engagement: bringing past visitors, leads, or customers back
- Lead gen: promoting a webinar, consultation, free trial, or download
- E-commerce discovery: pushing a short list of best sellers or a seasonal collection
- Local service visibility: staying top of mind while people compare options
Running a promo or launching a new offer? Get a Gmail Ads promo plan from Y77.ai with recommended audiences, creative angles, and budget splits.
Gmail Ad formats you can run
Because Gmail Ads run through Demand Gen, you are essentially using Demand Gen formats inside Gmail. Demand Gen supports image, video, carousel, and product feed formats (depending on your account setup and assets).
1) Single image ads
Best when you want one strong message and one clear action.
2) Video ads
Great for demos, before and after, quick testimonials, or product explainers. Demand Gen supports video assets broadly across its surfaces.
3) Carousel ads
Best when you want multiple offers, multiple pain points, or a short product lineup. Demand Gen supports carousel creative with multiple image cards.
4) Product feed ads
If you connect Google Merchant Center, you can show products from your feed inside Demand Gen formats.
Not sure what format will win for your niche? Y77.ai can map the right format to your funnel stage and give you a simple creative brief.
How targeting works for Gmail Ads
Gmail Ads in Demand Gen are audience-led, not keyword-led. Demand Gen audiences are built from segments like interests, intent, demographics, and your own first party data.
Common targeting options include:
- In market and affinity style audiences
- Custom segments based on user behaviour signals
- Your data segments (site visitors, customer lists, YouTube engagers)
- Lookalike style expansion from your data segments (where available)
- Location and demographic layers
Important: there is no classic content targeting
Demand Gen is a push style campaign, so you are not picking keywords, topics, or specific placements the way you would in Search or Display.
Pro tip: If you have an email unsubscribe list, exclude it from your Gmail Ads audiences so you do not pay to show “inbox ads” to people who already opted out.
If your audiences are too broad or too expensive, Y77.ai will rebuild your audience stack (warm, mid, cold) with exclusions and testing structure.
How bidding works for Gmail Ads in Demand Gen
Demand Gen supports goals like clicks, conversions, and conversion value, depending on your setup.
If your goal is traffic, Demand Gen also offers Target CPC (tCPC), which is designed to drive clicks around your chosen average CPC.
A practical rule:
- Warm audiences (remarketing, customer list): optimize for conversions
- Cold audiences (new discovery): start with clicks or a traffic-first approach, then move to conversions once you have enough signal
Want the fastest path to stability? Book a bidding and tracking audit with Y77.ai before you scale spend.
How to create a Gmail-only campaign (step by step)
You will build a Demand Gen campaign and then select Gmail as the only channel. Google confirms you can choose where Demand Gen ads show by selecting channels.
- In Google Ads, click New campaign
- Choose Create a campaign without guidance
- Select Demand Gen as the campaign type
- Set your goal (clicks or conversions) and choose bidding
- Build your ad group audiences (start with warm if you have it)
- In channel settings, uncheck everything except Gmail (so you only serve in inbox)
- Add your creative assets (image, video, carousel, product feed if applicable)
- Launch with a controlled budget for the first 7 to 14 days, then iterate based on engagement and downstream actions
If you want this built the right way on day one, Y77.ai can set up your Gmail only campaign end to end (audiences, creatives, tracking, reporting).
How to know if your Gmail Ads are working
Gmail reporting is different because an inbox view counts as an impression, and the first interaction is often an engagement (opening the expanded ad). Google’s engagement metrics include engagements, engagement rate, and average CPE, and it even defines a “Gmail teaser click” as the click that expands the ad.
Track your success in layers:
1) Inbox performance (teaser level)
Engagement rate
Cost per engagement (CPE)
2) Expanded ad performance (post open)
Click through rate to site
Landing page engagement (bounce, time on page)
3) Business outcome
Conversions or leads
Cost per conversion
Assisted conversions (Gmail often supports other channels)
Remember, if people do not engage, they cannot click out. If they do not click out, they cannot convert.
Common mistakes that kill Gmail Ads
- Weak teaser copy that looks like spam, so nobody opens it
- Wrong audience order, starting cold with a conversion goal and no data
- Optimizing too early, making changes every 2 days before you have a signal
- No exclusions, especially for poor quality segments or unsubscribed lists
- Creative mismatch, teaser promises one thing and expanded ad delivers another
Quick creative tips that improve opens and clicks
- Write the teaser like a real subject line: specific, benefit-led, curiosity without sounding fake
- Keep the expanded ad simple: one story, one offer, one main CTA
- Use a strong visual that reads on mobile (Gmail is heavily mobile)
- Test 2 angles at a time, not 10 at once
Ready to test Gmail Ads properly in 2026? Book a demo with Y77.ai or request a free tracking and campaign readiness audit so your inbox budget actually turns into leads and sales.