Over the past few years, Google has made significant changes in how they serve ads for product and shopping related searches. With the improved user experience provided by the Shopping Ad format, we now see these ads taking a prominent position for nearly every search containing product or shopping intent. This space has become extremely competitive and retailers are always seeking ways to gain the upper hand.
One way that Google tries to help advertisers stand out is by providing them with the ability to include promotions in their Shopping Ads. This allows a retailer to stand out from their competition and potentially capture more sales. However, this feature from Google sometimes comes with unexpected side effects. It can definitely drive additional sales, but may do so with the unintended consequence of causing a large volume of additional low value clicks. This is because the promotional offer included in the ad is compelling not only to those interested in buying the product from your brand, but also to tire-kickers browsing around for bargains with almost no intention to buy.
In order to gain this same lift in sales, while also controlling costs, test serving a promotional offer to users visiting your site from a Google Shopping ad, but only AFTER they have clicked through to your site. Each ecommerce platform has its own way of doing this, but the best practice would be to present the offer in a banner on the landing page to this specific segment of users. This tactic will likely result in the same sales lift found by placing the promotion on the ad itself. It may actually result in a larger lift due to the pleasant surprise experienced by users. Additionally, because the offer is not being displayed in the ad, you will avoid paying for extra clicks from discount tire-kickers. Only users that have shown interest in your product, without an incentive, are being exposed to the offer, and the promotion simply helps them continue down the funnel.