UNDERSTANDING GOOGLE S AD EXTENSIONS

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2 Google is constantly testing, innovating and rolling out new ways to present advertisements to online shoppers in an effort to walk that fine line between helping searchers find what they need and keeping advertisers happy. With so many options to choose from within Google s PPC program, we ve pulled together a guide to help you understand all of the various extensions that Google has available to advertisers, as well as the desired impact of implementing each type. We ve also provided a handy chart that will help you determine which extensions are right for you and which types of extensions can show together. Lastly, we ve addressed how you are charged for each extension type. The extensions we will talk about are: PRODUCT EXTENSIONS SELLER RATINGS CALL EXTENSIONS DYNAMIC SEARCH ADS AD EXTENSIONS SITELINKS SOCIAL EXTENSIONS LOCATION EXTENSIONS

3 Product Extensions Product Extensions are the little brother and the precursor to Product Listing Ads. They feature the same image and Google Merchant Center feed integration, but also include your standard text ad and are triggered by the keywords in your ad groups. For this reason, Product Extensions need to be added to your existing keyword campaigns. You can choose to segment them down by Brand, AdWords Grouping, etc. or just set them up on every campaign with all products as the target and let Google match them up. Before you can activate these, you need to add your AdWords account ID to your Google Merchant Center account. Set these up on all keyword campaigns. Start with all products as your target, and refine if necessary. Make sure your images in the Google Merchant account are high quality and accurate. Product Extensions show an increase in CTR compared to text ads without an extension. Additionally, retailers with unique or differentiated products may see an increase in conversion rate due to the fact that consumers have already seen an image of the product before clicking. No incremental cost. You are charged the same as a standard text ad CPC.

4 Call Extensions Call Extensions allow you to display a phone number in conjunction with the full 95 characters of regular ad text. In addition, Call Extensions shown on a computer will use a Google Voice number to redirect to your business s phone number, which allows Google to provide reporting such as call duration, day and time of call and the caller s area code. When implementing Call Extensions on mobile campaigns you can choose to set the ads up as call only. This is great to drive in-store traffic. Also, on mobile devices you can choose to not use a Google Voice number, but you ll get less detailed reporting. Call Extensions have been proven to increase the click-through rate on ads, not to mention the fact that calls themselves usually have a higher conversion rate than clicks. We think that having a number that is visible also encourages conversions simply because it instills trust in the consumer that should their experience go south, they will be able to easily call someone. On computers and tablets, calls through the Google Voice tracking number are $1.00 each or your maximum CPP (cost per phone call) bid. On mobile devices, calls are charged the same as your CPC bid.

5 Sitelinks Sitelinks are those glorious little lines of clickable text that make paid search ads look even more like the organic search results. They are designed to drive someone deeper into your site with just one click. Sitelinks work for every type of advertiser, but keep in mind, the goal here is to get MORE specific, not less. Therefore, if you re using keyword destination URLs and your campaign includes keywords that are quite specific like Brand+Item Category+Model Number+ Colour, having a sitelink that goes back to a Brand+Category page might actually result in more clicks, with a higher bounce rate and poorer ROI. Include Sitelinks on nearly every campaign, but monitor to make sure you re not actually lowering your conversion rate on campaigns that include product-specific keywords with keyword destination URLs. Sitelinks show in various formats now, so include at least 6 Sitelinks in each campaign to ensure that your ad can show in all the different Sitelinks formats Google is continually testing. Increased CTR and increased conversion rate, as long as you re doing them right! No incremental cost. You are charged the same as a standard text ad CPC.

6 Location Extensions Location Extensions show your standard text ad with local business information from your Google Places account. These ads can show on Google.com, search partners, some display network sites (if opted in) and on Google Maps. Enhanced ads on Google Maps also include a business icon and a map marker. On high end mobile devices, Location Extensions also display a click to call phone number. Be aware that Location Extensions can be set at the campaign or ad level. If you have many retail locations but are running a promotion at only one or two of those stores, you can associate only one or two locations with a specific ad copy. Increased in-store traffic. Location Extensions allow for a fair amount of free interaction. Only when someone completes a click to call on a mobile device or clicks all the way through to your website are you charged the CPC. If someone clicks to get more information or your business address from Google maps, you are not charged.

7 Social Extensions Social Extensions link the Google+ Endorsements of your Business Google+ page to your AdWords ads. Ads look exactly like a text ad but include a + annotation on both Google Search and the Display Network. Any + to your Google+ Business page or to the ad itself will be shared between the two. That means that if someone +1 your ad, that + gets added to your Google+ Business page, and vice versa. If you have the +1 button on your website, any + to that button also gets added back to your AdWords ads and then to your Google+ page, assuming you ve set up Social Extensions. Set up a Google+ Business page and have Google link it to your AdWords account by contacting your Google account team or the general support address. Also add the +1 button to your website on every page, above the fold. Increased CTR as well as potentially some integration of the +1 with Google s Quality Score calculation in the future. We re recommending that retailers get on board with the +1 experience ASAP for this reason as well as an increase in conversion rate if someone s social network has a retail presence. Check out our blog post on why Google+1 is important to retailers. There is no cost for someone to +1 your ad directly. You are only charged for clicks through to your website.

8 Dynamic Search Ads Dynamic Search Ads, currently in beta, are Google s new and improved version of the Automatic Match Beta circa These are not, in our opinion, actual extensions but rather a whole new ad format and therefore will be addressed in a separate resource. The short version is that you allow Google to crawl your website and fill in gaps in your current keyword coverage with content found on the site. You can exclude pages or sections as you see fit. You generate lines 2 and 3 of the ad and AdWords dynamically generates the headline. Review your search query reports carefully and be prepared to refine these campaigns through a lot of exclusions. Remember, you re giving the Google crawler free reign to find anything on your site and create keywords, even head terms. Good at filling in gaps in KW coverage but the automation leaves a little TOO much control on the table. So far, we haven t seen great ROI here but we re continuing to tweak setup. You are charged CPC like a normal text ad.

9 Seller Ratings Seller Ratings show your online business ratings in your ads. You don t need to set these up manually, they will automatically show once your site receives 30 or more ratings at 4 stars each. Ratings are based on the reviews collected by Google Product Search which aggregates ratings from places like Bizrate, Reseller Ratings, and Viewpoints as well as Google Checkout. Seller Ratings will only appear on Google search ads. Review the Seller Ratings that have been collected by Google by adding your url (minus the www) to the end of this URL: Make sure your store name and registered domain match between your Google Merchant account and any third party Seller Rating websites. If you don t have enough reviews, make sure you re actively trying to collect ratings through a 3rd party source like Bizrate, Epinions, etc. Increased CTR as well as a potential increase in buyer confidence and conversion rates. When clicked, seller ratings take you to the actual review page URL (same URL that is listed above) for that retailer. The ads themselves are clickable in the normal places, and you are charged the same CPCs as a normal ad.

10 In Summary There you have it a summary of the ad extensions currently available and how they work together. As a general rule, here at ChannelAdvisor, we never met an extension we didn t like. The jury is out on Dynamic Search ads, but as mentioned above, we re denying that they are extensions to begin with. Set em up, keep em fresh and monitor key metrics like CTR and conversion rate to make sure they re working for you. We think some of these extensions may indirectly improve conversion rate by increasing buyer confidence, but the main metric we expect to see move is click-through rate. Remember, increasing CTR means more traffic. If you re already struggling with conversion rates that are too low for profitability, you ll want to address that before you drive a lot more traffic that may not have a significantly different conversion rate! GOOGLE AD EXTENSIONS AT A GLANCE Extension Type Best For Shows With Cost Product Extensions Retailers, especially those with products that are differentiated from competiors or of a visual nature Example: Designer handbags are more visual in nature than socks Seller Reviews/Social Extensions CPC Call Extensions Customised products, expensive products, local businesses Sitelinks/Seller Reviews/ Social Extensions $100 or CPP on Tablets/ Computers, CPC Bid on Mobile Sitelinks Everyone Seller Reviews/Call Extensions/Social Extensions CPC Location Extensions Click & Mortar businesses, physical location service businesses (ex. Hair Salons) Seller Ratings/Social Extensions CPC when clicked through to website. Can get more business info by clicking on Google maps for free. Social Extensions Everyone All Others Dynamic Search Ads Anyone who has gaps in KW coverage and the time to monitor search queries regularly Seller Ratings/Social Extensions/Sitelinks Extensions CPC Seller Ratings Retailers, anyone that can collect survey for goods/services All other extensions CPC for clicking on other extensions or ad. Seller Rating clicks are free and go to the ratings summary pages.

11 About ChannelAdvisor ChannelAdvisor is a leading provider of cloud-based e-commerce solutions that enable retailers and manufacturers to increase the scale and profitability of their global sales through dozens of online channels including Amazon, Google, ebay, Facebook and more. Through automation, analytics and optimisation, ChannelAdvisor leverages a single inventory feed to more efficiently list and advertise products online, connecting suppliers with shoppers to increase sales. Billions of dollars in sales are driven through ChannelAdvisor every year, and thousands of customers depend on ChannelAdvisor to substantially grow their businesses. To learn more: Call UK US Visit ausales@channeladvisor.com The global standard for e-commerce leaders.