Price Extension in Google Ads: A Tactical Asset for Driving Conversions
The Price Extension is an additional asset in your Google Ads campaign that allows you to more effectively influence conversion performance and cost per acquisition. By using this extension, you address several communication and tactical objectives simultaneously:
- Product Variety & Relevance: You showcase a range of products a user may have in mind when entering a broad or non-branded search query. This gives your ad greater relevance and increases the chance of matching user intent.
- Strategic Pricing: Displaying prices allows you to differentiate from competitors—either by highlighting better pricing or by filtering out users who may not be ready to purchase a higher-ticket product.
- Increased Screen Coverage: Price extensions take up more visual space in the ad unit. This physically pushes down competing ads and allows your brand more on-screen time and attention from the user.
We analyzed campaign data to understand how Price Extensions influence conversion cost in Google Search Ads. Our findings are outlined below.
Performance Data: Price Extension Impact on CPM & Conversion Cost
The graph illustrates the average share of impressions in which the Price Extension was shown. Roughly 20% of all ad impressions included the price asset. Notably, CPM (cost per 1,000 impressions) for these impressions was significantly lower than the campaign’s average CPM, indicating that the extension contributed to lower-cost clicks. Overall, we assessed the effectiveness of the Price Extension positively across various verticals and campaign types.
Price Extension Setup in Google Ads
Price Extensions in Google Ads are highly customizable and can be tailored to your exact product or service offering. You can choose a price type that reflects service tiers, product categories, brand variants, or even geo-specific offerings.
If your pricing is unit-based (e.g., rental services), you can specify pricing intervals such as per night, per day, per hour, etc. You also have the flexibility to display prices as “from” (starting at) or as a fixed amount.
You may create multiple Price Extensions per ad group to test different hypotheses—for example, displaying weekly and daily rates for long-term vs. short-term bookings, or comparing similar product categories and brands. Google will automatically prioritize the combinations that perform best.
Key Results: +20% Lower CPA with Price Extensions
In our case study, the Price Extension demonstrated positive and statistically significant impact on all core performance metrics. Over the course of more than 1,000 conversion events, we observed a consistent reduction in traffic cost and a higher conversion rate. As a result, cost per purchase decreased by nearly 20%.
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