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Google Updates Product Listing Ads with Shopping Season Around the Corner

Posted by: Anna Hutson

The holiday advertising and shopping season is just around the corner.  Google has recently rolled out several new updates to their Product Listing Ads.  Product Listing Ads are paid search ads that highlight product images, prices, and product information, extending an ad beyond the headline and ad text character limits of a traditional text ad.  Additionally, Product Listing Ads are charged on a cost-per-action (CPA) model, meaning that an advertiser only pays when a searcher clicks on an ad and completes a purchase.  With the additional advertising real estate that comes with Product Listing Ads (images, product details), Google states that “users are twice as likely to click on Product Listing Ads than on text ads in the same location for shopping queries.”

The recent updates to Product Listing Ads, as announced on Inside AdWords:

  • More featured products – Product Listing Ads (in the top ad location) can now show up to 5 products at a time, giving users more shopping choices and allowing more advertisers to promote their products.
  • More traffic - Since launching Product Listing Ads in AdWords to all US advertisers, Google has seen significant growth with an overall 600% increase in traffic to retailers from Product Listing Ads compared to last year.
Product Listing Ads

Product Listing Ads


Additionally, according to Google’s Holiday 2011 Consumer Intentions Report, 46 percent of consumers plan to use search engines more for researching holiday purchases this year.  eMarketer also estimates that “US retail ecommerce holiday-season sales, which include all retail ecommerce sales during November and December, will rise 16.8% this year to $46.7 billion.”  Advertisers should prepare to capitalize on the projected online spending increase and ensure online ads are showcasing their products appropriately and with relevant holiday deals, sales and limited time only messaging.


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