Google Ads has added a new automated text overlay capability to Demand Gen video campaigns, and it is switched on by default for existing advertisers. The platform introduced an "Overlay on videos" asset optimization setting for Demand Gen campaigns, allowing Google to automatically add text messaging to video creatives.
What the New Setting Does
The setting appears under Asset optimization in Demand Gen campaigns, alongside the existing "Shorter videos" and "Resized videos" options. When enabled, Google pulls from an advertiser's text assets, headlines, descriptions, and other copy, and places those phrases as overlays on top of video ads.
PPC News Feed reported the UI label and description as "Add key messaging with text assets on videos," noting the option is marked as "new" and was spotted by Gert Jan van Egmond.
Default-On Status Requires Immediate Attention
The feature appears to be enabled by default. It allows Google to automatically add text from ad assets on top of videos. Advertisers who want to avoid automatic text overlays should check their campaigns. The setting can be disabled in the video optimization settings.
To turn it off, advertisers can untick "Overlay on videos" on its own, or choose "Disable all" to shut off every video optimization at once.
Regional AI Labelling Requirements
Ads served with modified image or video assets are labelled as created or edited with AI in the European Union, India, and New York state. This labelling requirement applies across all asset optimization features in the Demand Gen panel, not only to the new overlay setting.
Context Within Demand Gen's Asset Optimization Panel
The "Overlay on videos" option is the latest addition to a set of automated creative tools Google has been expanding within Demand Gen. Google AI can automatically create additional versions of assets to improve campaign performance, spanning both video and image optimizations. The "Get vertical and square versions of your videos" and "Get shorter versions of your videos" checkboxes are ticked by default, with the option to uncheck to opt out. Video enhancements are enabled by default for any new campaigns and can be turned off in ad settings.
Practical Implications for Advertisers
Advertisers running Demand Gen video campaigns should audit their Asset optimization settings as a priority. Because the "Overlay on videos" toggle is reported to be on by default, campaigns that have not been reviewed since the setting appeared may already be serving video ads with automatically generated text. Advertisers with carefully designed video creatives, where on-screen space, visual hierarchy, or brand guidelines are a factor, face the highest risk of unintended changes to their ad presentation. Those operating in the EU, India, or New York state face an additional consideration: AI-modified creatives will carry a mandatory disclosure label, which may affect how ads are perceived by audiences in those regions.
Google's Confirmation on AI-Modified Creative Labels
The change was reported on October 9, 2026, confirming that Google Ads added the "Overlay on videos" asset optimization setting to Demand Gen campaigns. Google's own help documentation confirms that asset modification features across the Demand Gen panel carry regional AI disclosure requirements, noting that video enhancements are enabled by default for any new campaigns.
