Online retailers are rejoicing today with Google just announced the introduction of automatic extensions for Shopping ads (PLAs).
Automated Extensions for Shopping Ads: An Overview
This is a game-changer for e-commerce businesses utilizing PLAs. These extensions are not only completely free but also require absolutely no setup effort from the advertiser – everything happens automatically. By utilizing feed data, AdWords automatically identifies and incorporates useful information for potential customers, such as special promotions like free shipping or price cuts, directly into the extensions of your Shopping ads. Take a look at the example below to see these automatic ad extensions in action:
Unpacking the Change
Google emphasizes the advantages for advertisers – the automation and cost-free nature of the process – as the key driver behind this update. Naturally, these extensions will likely increase Shopping ads’ visibility on search engine result pages, translating to higher ad revenue for Google. It’s no secret that extensions significantly impact click-through rates. Google also points out that advertisers experienced improved returns when incorporating promotional messaging in their ads. However, the adoption rate wasn’t ideal. The transition to automated extensions allows Google to showcase the enhanced value of PLAs to potential advertisers. Historically, Google has been a proponent of “bells and whistles” like extensions (remember when they “encouraged” their use by integrating them into the Ad Rank formula?), so this move aligns with their strategy. Furthermore, leveraging feed data to pinpoint enticing offers for potential customers is a straightforward and efficient method to enhance ad appeal. Therefore, Google’s implementation of this new feature is no surprise.
Preparing for the ‘Buy Button’
Another factor influencing Google’s decision is likely the upcoming widespread launch of their much-anticipated “Buy Button.” The introduction of automated extensions for PLAs seems like a strategic step in that direction. These free, automated extensions are designed to make Shopping ads more prominent and enticing, encouraging clicks – precisely the user behavior Google wants to foster before the rollout of the new direct purchase option.
Potential Drawbacks of Automated Extensions for Shopping Ads
While automated extensions largely appear beneficial for all parties, advertisers should consider a few potential drawbacks. First, it remains unclear how Google will determine which Shopping ads will display these new extensions and the selection criteria. If a large proportion of Shopping ads end up featuring them, users might become indifferent to their presence, diminishing their overall effectiveness – an outcome Google certainly wants to avoid.
Standing out on the SERP is crucial. Another consideration is the potential disadvantage for smaller retailers who don’t offer free shipping or frequently adjust their prices. Without these incentives, smaller retailers might struggle to compete with larger businesses whose ads will be more prominent and eye-catching due to these features.
Strategies for Differentiation
To differentiate themselves, businesses should first analyze their competitors’ strategies. If competitors offer free shipping or discounts, explore matching those offers. If permanent discounts aren’t feasible, consider regular price adjustments, especially during peak shopping seasons, to create the impression of reduced prices.
Leverage Merchant Promotions
Enrolling in merchant promotions is another way to offer attractive deals to potential customers. While visually similar to the short-lived offer extensions, merchant promotions are designed specifically for online shoppers.
Ads featuring merchant promotions have a competitive edge, making them more enticing to potential customers, especially if competitors aren’t utilizing them. The enrollment process is now streamlined, with an approval waiting period of just a day or two.
Obtain Trusted Stores Certification
If you haven’t already, obtain Google Trusted Stores certification. This powerful trust signal demonstrates your business’s trustworthiness, a key selling point even for hesitant online shoppers. Learn more about the Trusted Stores program and enrollment process on the official Google support page.
Utilize Product Ratings
Product ratings are incredibly powerful and persuasive elements to incorporate into your Shopping ads.
This extension showcases a star rating for your products (on a five-point scale) directly beneath your PLAs. This allows potential customers to instantly gauge the quality of your merchandise while empowering satisfied customers to become brand advocates organically!