Google Offer Extensions: A Game-Changer for Advertisers

Offer Extensions are a new Google Ads feature that allows businesses to add clickable coupons, rebates, or discounts to their search ads. This exciting feature, previously in beta, is expected to be widely available by the end of February.

Here’s how they look in action:

How Offer Extensions Function

Advertisers can attach a redeemable offer to their standard Google search ad. Clicking on the “view offer” link directs users to a Google-hosted landing page where they can print the offer or save it to “My Offers” within Google Offers for future in-store use.

The Reasoning Behind Offer Extensions

Google has been exploring the deal market for some time, which makes sense given their vast network of local advertisers and the effectiveness of coupons for local businesses.

Back in 2010, Google reportedly attempted to acquire been in talks to buy Groupon for a staggering $6 billion. However, this offer was rejected by Groupon, which later filed for an IPO. This led to the creation of Google Offers in 2011, a direct competitor to platforms like Groupon and Living Social. Google aimed to replicate the successful and scalable Groupon model.

Unfortunately, Google Offers failed to take off with the level of success they had hoped for. However, Google remained persistent.

Their next venture, Google “Save to Wallet”, allowed users to save deals found online for later use through the Google Wallet mobile app. This essentially functions as a digital coupon clipper for both physical and online stores, further emphasizing Google’s focus on local businesses.

Offer Extensions are a natural progression in Google’s foray into coupons, offers, and rebates. The strategic move highlights their understanding of the value these offers hold, especially when combined with local searches – a significant portion of Google’s search volume. While beneficial for Google, Offer Extensions hold even greater potential for advertisers who utilize them.

Enhancing ROI Measurement for Advertisers

Online advertisers, particularly those with physical stores, have struggled to effectively measure the overall impact of online marketing. Traditional conversion tracking focuses on actions ending in a “thank you” page, such as form submissions or online purchases. However, this doesn’t account for the customers who, after viewing an online ad, choose to visit a physical store instead.

While challenges in measuring the full effect of online ads persist, Google acknowledges the difficulty advertisers face in tracking how pay-per-click (PPC) campaigns influence foot traffic.

Offer Extensions bridge the gap between online and offline activity by allowing Google to track how many users save and print an offer. This provides advertisers with valuable insights into their ROI. When users print an offer for in-store redemption, businesses gain a clearer understanding of how online actions translate into offline results.

Tapping into the Deal Market

Coupons and discounts are powerful incentives. Whether it’s a “buy one, get one free” offer or a “20% off” discount, consumers are more inclined to make a purchase when they feel they’re getting a deal.

Coupons attract attention and increase visibility for advertisers. Even if users simply save a deal for later and don’t immediately redeem it, they’ve still engaged with the business and brand more than they might have otherwise.

Using platforms like Groupon or Living Social to promote deals can be quite a hassle. High costs and limited control over the deal after launch are common complaints. Offer Extensions present a compelling alternative to such deal sites, allowing advertisers to enter the deal market through the familiar Google Ads platform.

The Importance of Foot Traffic

Offer Extensions empower advertisers to convert online interest into in-store visits. But which holds more value – an online purchase or a physical one? The answer depends on factors like business size and industry.

Small, local businesses often benefit most from in-store purchases. For many, accessibility is a key aspect of their appeal, especially for businesses offering products or services that don’t translate well online, such as flower shops, ice cream parlors, and cafes.

Even larger businesses that offer online ordering can benefit from in-store deals. For example, a customer might find an online deal for Olympia Sports, use the coupon, and have their order delivered. However, an in-store offer encourages them to locate a nearby Olympia Sports store, increasing the likelihood of future visits for sporting goods needs that can’t be met online.

Simple Setup Process for Offer Extensions in Google Ads

One of the best features of Offer Extensions is their ease of implementation. The process is straightforward, but it’s important to note that Offer Extensions are only available for “enhanced campaigns”. When setting up a campaign, choose one of the following types:

• Search & Display Networks – All features
• Search Network only – All features

To create an offer at the campaign level, go to Ad Extensions > Offer Extensions > “Create New Extension”.

Then, fill in the following details:

• Headline: Craft a compelling headline for your offer, incorporating best practices for Google text ads, such as including a call to action. One advantage of Offer Extensions is the generous character limit of 35, compared to the standard 25 for Google ads.
• Redemption Date: Specify the period during which users can redeem the offer.
• Distribution Date: Set the dates for the offer to run alongside your ad.
• Promotion Code: Choose between a barcode or a text discount code for redemption at the point of sale.
• Details: Include any restrictions or instructions for redeeming the offer.

Once the Offer Extension is set up, it’s ready to go! It won’t always appear; it will only show for ads in the top three positions and only if Google deems it relevant to the user’s search query. Currently, Offer Extensions are limited to US search queries.

The offer appears directly below your text ad, with a link leading to the specified landing page (Google-hosted for offline offers, your own website for online offers) providing details about the deal.

Clicking on the offer extension link or the ad text link incurs the same cost-per-click (CPC). Despite a higher potential value for offer clicks due to the user’s interest in the savings, the CPC remains consistent. These offer ad extensions can also appear on mobile devices:

Upon clicking the offer link, coupons for in-store redemption direct users to a Google-hosted landing page displaying the offer headline, details, and business logo. The discount code or barcode is revealed only after printing or redeeming the offer. Users can choose to print the deal or save it for later in their Google Offers account.

Best Practices for Effective Offer Extensions

Be Specific: In the offer headline, promote a deal on a specific product or service, like “50% Off Children’s Bike Helmets”, instead of a general business description like “Fast Deliveries Every Time.”

Offer Real Value: Ensure the deal is enticing enough for users to click.

Differentiate from the Ad: The offer should have distinct wording from the text ad.

Maintain Exclusivity: Avoid promoting a general discount available to everyone. The offer should be exclusive to those who possess the deal. The goal is not to advertise a general sale but to provide a limited-time or limited-audience offer.

Ensure Consistency: Terms and Conditions should align with offer details.

Consider Offer Creation Location: Campaign-level Offer Extensions can appear for any ad within that campaign, so the offer must be relevant to all ads and locations where it might appear. The same applies to ad group level Offer Extensions.

Make it Stand Out: Just like with regular text ads, the offer should grab attention. Experiment with wording, punctuation, or attractive discounts.

Adhere to Policies: Offer Extensions must comply with Offer Extension Policies and general Google Ads policies.

Examples of Effective and Ineffective Offer Extensions

Effective: “Buy One Regular Priced DVD and Get The Next 50% Off”

Details: Valid until March 31st, present this coupon at checkout when you purchase a full-priced DVD to receive 50% off a second DVD. Discount applied to the lowest priced item. Excludes DVD Season Sets and Special Collections. Limited to one per customer, per purchase. Coupon must be presented at the time of purchase.

Why it Works: Offers tangible value, outlines specific conditions, and explains the redemption process.

Ineffective: “Free Shipping On All Orders!”

Details: Enjoy free shipping on all online orders.

Why it Doesn’t Work: Lacks time sensitivity as it’s an ongoing offer. Fails to specify redemption methods or restrictions. Just like with any other Google Ads feature, improper implementation won’t yield positive results.

Could Offer Extensions Be Coming Soon to Google Maps?

Google Maps, a dominant player in the mapping market, has remained relatively ad-free. However, considering their past attempts to integrate Google Offers and “Save to Wallet” within Google Maps, it wouldn’t be surprising to see offer extension ads appearing there:

Will Offer Extensions be the key to successfully monetizing Google Maps? Only time will tell!

The Future of Offer Extensions

Local advertisers, in particular, should seize the opportunities presented by Offer Extensions for several reasons:

• They provide an easy entry point into the deal market.
• By connecting online and offline activities, Offer Extensions enhance ROI measurement.
• Integrated discounts below ads increase visibility and improve click-through rates (CTR), which in turn can positively impact Quality Scores.

Offer Extensions hold significant potential for Google Ads. Instead of simply launching a deal and hoping for the best, Google aims to connect the right offers with users who are ready to buy.

This new approach could potentially disrupt deal platforms like Groupon, which rely on brand recognition to attract users, as Offer Extensions deliver deals directly to users based on their intent and location.

What are your thoughts? Is it time to start digging Groupon’s grave?

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