The impact of Google AdWords Price Extensions’ New Look
Price extensions are a Google AdWords extension that allow you to display prices for products/services within the ad. These were initially in the form of a list similar to sitelinks but now Google has transformed them to swipeable cards.
What does this mean for you?
The update to the format of price extensions means that even if the visitor does not click on your ad, they will still know what we are offering and at what price, helping to raise brand awareness and also helping the user to make price comparisons. Whilst this may not result in a click through to your website from the ad, hopefully it may lead to a future click either from paid or organic.
Generally price extensions allow you to highlight the price with a header and description of the product/service. You can use price extensions to highlight products, services, hot deals/promotions, and brands. These extensions provide you with the opportunity to present various options that searchers can click and land on the product page which will hopefully lead to a conversion if that page meets the expectation of the advert.
More Real Estate = More Conversions
Example of a Price Extension ad on mobile as seen on Search Engine Land
Before the advent of price extensions, you were only given a relatively small amount of real estate within the Google SERP. Price extensions not only allow us to take a much more substantial amount of real estate in search engine results compared to ordinary text ads but they also provide us with the opportunity to present a much more visually appealing ad to the customer. Search Engine Journal and Wordstream both suggest that price extensions, on average, bring 4x more click throughs when compared with normal text ads. This is a significant increase to the CTR of your ads so if price extensions are relevant to your business, it could pay to start investigating how you could use them to drive more traffic to your website.
Important: make sure that your ad ranks on the top to take full advantage of price extensions. This may increase your adword spend, however think of it as investing in prime real estate. You can do some simple sums and carry out a cost benefit analysis; is the cost of ranking in the number one ad spot for a search query worth the extra potential of a 4x higher CTR. A lot of this will depend on your conversion rate from the specified landing page and this is something we can help with here at Digital Hothouse should you need advice.
It appears that Google is currently also testing a new type of price extension (not yet seen here in New Zealand) which features a ‘price card’. These cards actually take up less real estate than the other price extension ads that are seen above, however they are more in line with Google’s strategy of creating ‘card’ content for both mobile and desktop. Whilst Google recommends using at least five different offers in price extensions they will accept between three and eight of these ‘price cards’.
— Lee L Kennedy (@LeeLKennedy) August 23, 2016
You can now also use price extensions in 10 different languages as well as English. These languages include: Japanese, Russian, German, Dutch, French, Italian, Polish, Portuguese, Spanish and Swedish.
Setting up Price Extensions
Let’s talk about how to set price extensions up:
- Login to your Google AdWords account. In case you do not have one, you can create your AdWords account here
- Click on the ‘Ad Extension’ button
- Now the ‘View’ button
- Click ‘+ Extension’
- Finally, click ‘+ New Price Extension’
Once you have successfully completed the above steps, you then can optimise your ad. Choose a relevant field from the following;
Specify the type of product. You can choose one from the available options:
- Product Categories
- Product Tiers
- Service Categories
- Service Tiers
Make sure that you choose the most relevant category. Every little detail counts.
At the moment, Google is only allowing following currencies:
- NZD (New Zealand Dollars)
- AUD (Australian Dollars)
- GBP (British Pound)
- EUR (Euros)
- USD (United States Dollars)
- CAD (Canadian Dollars)
This is your key section to optimise and encourage a high CTR. You will define the header and description of your product/service offering here along with price and destination URL. This is your sales pitch so make sure you think carefully about the call to action and the copy that is most likely to entice a click from the searcher.
You have only a space of 25 characters, so be concise yet powerful.
The description field is also limited to just 25 characters so make sure you use both the header and description fields in tandem.
Your products/services in the selected currency. You may define a range if you want to, e.g. $50-60 or $50 and up.
- Final URL
The product page where you want visitors to land. Make sure the page you are sending a searcher to matches the advert and is optimised for conversion.
Inarguably, your product/service is the most important factor contributing to the success of your ad. At the end of the day, the quality of your product or service has got to meet the searcher’s needs but you must choose the text in your ad very carefully. Google has very specific guidelines about using words in an ad to maximise the return on your ad spend.
What are Google Adwords Price Extension Ads going to cost?
And what about the cost of price extension ads?
You may expect, with the added real estate and the opportunity to showcase products and prices in Google’s ‘card’ format that these ads may cost more than a standard Google ad. We certainly expected this to be the case, however after researching the opportunities, we found that there is not a huge amount of difference in the cost of a price extension ad. Considering the additional real estate you will have access to and the added appeal of price driven ads for various products it would seem likely that most companies will start to shift towards these price extension ads in order to keep ahead of the competition.
Remember: It looks as though these price extension ads will only be shown for the ad ranking in position number one. Therefore, it is likely that if you really want to take advantage of these price extension ads, your max bid is going to have to be higher to ensure a higher average position. Carrying out a cost benefit analysis based on the likely improved CTR is a good place to start with this to ensure you are not just throwing money at a new Google ‘product’.
This is what Google had to say about the likely cost of price extension ads:
“The cost of a click on a price extension equals the cost of a click on the title or display URL of the ad it shows with. In other words, you’ll be charged the same amount no matter where the user clicks—the ad or the extension. Price extensions give people more opportunities to click, but you won’t be charged for more than two clicks per impression. Plus, if someone quickly clicks on more than one link while viewing an ad, this may get treated as a duplicate or invalid click and you won’t get charged for the second click.”
If you’re not sure about price extension ads and whether they are relevant to your business, give us a call and we can have a look at your current performance and carry out an analysis to calculate the likely ROI of utilising these new price extension ads.