Google’s automated discounts as a shopping feature

Want to know more about this new pricing tool? Keep on reading.

Google Ads automated discounts is a new pricing tool using real-time data and artificial intelligence to attract customers into sales.

What does this mean? The optimized price is displayed in your ads. When users click on it, they are redirected to your page showing the actual price available (this resembles to plane tickets, for example). 

How do automated discounts work?

Google’s AI is in charge of adjusting the price of ads after analyzing large amounts of data. Once you set the minimum and maximum price range allowed, Google’s system considers price elasticity, trends, and market prices to determine optimized discounts.

Would you implement it in your business? Let us know in the comments below. 

How to set it up

  1. Implement conversion tracking: this can show you what happens when a user interacts with your ad
  2. Set minimum and maximum sell price
  3. Determine the cost: you can either set it yourself for items you want the automatic discount to work with or you can let Google’s AI determine it for you
  4. Integrate pricing controls on your website

Our Take

Google’s automated discounts are a great conceptual feature that we could experiment with. However, it may be tricky to trust Google’s AI with something as sensitive as the price of your products because it directly affects your profit. 

Price sensitivity, elasticity, and revenue management are pricing concepts that have been optimized for decades in different industries, such as airline tickets. It is great to have a tool to test possibilities of increasing revenue or profitability, but it’s not clear yet if you can choose a limited amount of products to test this with on shopping campaigns. 

Do we have some type of control of limited exposure to avoid potential catastrophic scenarios? 

As expected, we will continue analyzing this new feature and we’ll let you know if Google announces any changes. Stay tuned!

About Quantikal

Quantikal is a data-driven performance marketing agency based in Buenos Aires, Argentina. We help clients scale their business through profitable digital ad spending by constantly obsessing over clients’ key metrics. Quantikal’s experience working in diverse online companies in marketing roles including media buying allows us to provide solutions in the ever-demanding increase of marketing performance, doing more with less thus becoming a strategic partner.

Google’s RDAs have new layouts for a better mobile experience

Want to know more about this upcoming update? Keep on reading

Google announced in the annual Marketing Live 2022 event that Responsive Display Ads (RDAs) are going to be enhanced towards a better mobile experience for advertisers and consumers, aka a mobile-first layout. According to Google, these changes give marketers more control over the ad’s visual appearance on mobile versions. 

What will be different about RDAs?

One of the main changes includes the option of a new portrait image:

  • Previously, the ad format required a square image, and Google filled in the gaps in the mobile version. 
  • Now, advertisers can control the ad’s appearance by allowing portrait images to display on mobile devices

Additionally, Google now gives advertisers the option to use existing resources to create a vertical video for ad campaigns. This format uses machine learning to design and create engaging display ads. However, checking the end result before testing might be preferable, since auto-created videos might not be at your standard level. 

Do you think this is useful for visual creators? Let us know in the comments below.

Another update to RDAs will make images fit in the available space, without needing to expand images. Let’s see an example:

Our Take

It is clear that RDAs are the dominant display ad format in Google’s platform. The possibility to adapt multiple size formats automatically for maximum coverage is a great benefit since traditional Display ads forced advertisers to design each and every image according to the size of the ad. However, RDAs are not quite cooked yet. As we see in Responsive Search ads (RSAs), Google allows advertisers to pin texts or images to guarantee it has a specific position, and this is a crucial feature we do not get to see in RDAs.

There should be more control over how ads are shown in different situations since not all advertisers are willing to have a full design team that builds hundreds of image variations according to each scenario. It would be a great addition to RDAs if Google launches more control tools that show how the ad is actually showing. It can’t be all black or white, some gray would be nice.   

Given that these additions show the importance of mobile usage nowadays, we are eager to see if any more ad formats are taken into account with more tools that give more power to advertisers.

As expected, we will keep you informed of any new updates launched in the near future. Stay tuned!

About Quantikal

Quantikal is a data-driven performance marketing agency based in Buenos Aires, Argentina. We help clients scale their business through profitable digital ad spending by constantly obsessing over clients’ key metrics. Quantikal’s experience working in diverse online companies in marketing roles including media buying allows us to provide solutions in the ever-demanding increase of marketing performance, doing more with less thus becoming a strategic partner.

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