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Shay Meadows By
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Google AdWords introduced Product Listing Ads to advertisers in 2012. Google just recently announced that they are retiring Product Extension Ads this month, which are different than Product Listing Ads. Let’s differentiate between the two to realize what we will no longer see on a Google results page.

Product Listing Ads
Google AdWords Product Listing Ads are separate from text ads, as they appear in their own box on a Google Search. They allow advertisers to promote special products with an image, promotional message, title, price, or their business’s name.

Product Extension Ads
Google AdWords Product Extension Ads are additions to text ads on the Google search engine results page that include a product listing and price of a product that a certain user has searched for. At the end of this month, a user will no longer see these Product Extension Ads on Google. For example, if a user searches “furniture,” the following Product Extension ad will no longer show that http://www.overstock.com is promoting three specific furniture items.

 

I believe that Google has decided to discard Product Extension Ads because they have seen a higher Click-Through Rate (CTR) with the Product Listing Ads as opposed to the Product Extension Ads. At this time, they have not made any announcements about removing any other ad extensions. To learn more about extensions, visit the AdWords Help Center.

I am intrigued about this recent change; therefore, I plan on keeping an eye on Google Shopping over the next few months. I predict that this will drive more traffic to Google Shopping, in turn increasing the cost-per-click (CPC). What effect do you think the removal of Product Extension Ads will have on Google Shopping?

5/22/2013 UPDATE:

Google AdWords released a statement this morning about Google Shopping in relation to Product Listing Ads. In eleven countries, Google Shopping is completing the transition into a commercial model. On June 11th, users will no longer see free product listing ads on Google Shopping in these countries. This new model was built on Product Listing Ads and Google believes that it will convert more shoppers into buyers. Read more about Google Shopping merchant success stories on the AdWords Blog.

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