by Diogo


AdWords, Google Ads, Online Advertising

Are Price Extensions underestimated on Google Ads?

Price Extensions have been around for a while, more precisely July 2016, as a mobile only format. In March 2017, Google rolled out Price Extensions for Desktop, however, the extension is some distance away from being embraced by all PPC managers.

The goal for this extension is to highlight business products or categories in detail, in order to help the user find what they’re looking for quickly through the ads.

Here, at ConversionWorks, we’ve been extensively testing Price Extensions for our clients who operate in a range of industries including retail, sports and recruitment. Below you can see what we’ve discovered so far:


On average, Conversion Rate is 12% higher for Price Extensions

Based on our tests, Price Extensions have a 12% higher conversion rate than any other click type (main ad copy included).

This can be explained by the fact that the Price Extensions can be used as a filter for unwanted clicks. Users that click on the price extensions are more willing to buy because they know how much they will pay for the product/service.

Keep in mind that this extension can be a weapon against your own performance and therefore, we recommended that you review your price extensions on a regular basis. For instance:

  • Keep track of your competitors because their products can be cheaper than yours and directly impact your conversion rate.
  • Check that your ad copy supports your extension.
  • Make sure that your landing page matches the price extension because Google doesn’t check it on your behalf.

This issues listed above can have a negative impact on your campaigns.

On average, Cost per Acquisition is 17% lower for Price Extensions

Supporting the idea that price extensions are a top performing ad extension that have been underestimated by PPC managers for a long time, we observed on average a 17% lower CPA among our clients compared to the rest of the click types.

This is a result of a better conversion rate and the fact that Price Extensions are more common on mobile and tablet devices, where the CPC is cheaper.

Price Extensions are more prominent on mobile devices

On average, 84% of traffic generated by Price Extensions, is mobile traffic, while for other click types only 67% of the clicks belong to mobile devices.

We see the same trend for conversions, with 78% of the conversion volume generated by mobile devices while only 56% of the conversions coming from other click types are generated on mobile and tablet.

First, this means that Price Extensions continue to be a mobile first extension showing most often across mobile devices, however, it’s on desktops that the extension stands out from the crowd with a better conversion rate.

Price Extensions have a better av. position, however…

There is a general assumption that Price Extensions can only be seen on top positions and therefore they should have a better average position. Our test confirmed the assumption that Price Extensions have a better position than the rest of the extensions.

The test also showed us something really interesting that is probably completely unknown to most people: Price Extensions might show below the fold.


If you want to check this with your own eyes, you just need to run an extension report and segment by “Click Type” and “Top vs Other”. You will be surprised with the data.

How to Set up Price Extensions in the new Google Ads UI

The new Google interface update is here to stay and Google plans to discontinue the old interface by the end of the year. For that reason, we want to help you make a smooth transition with our step by step guide to creating and managing Price Extensions in the new Google Interface.

In your Google Ads Account, click on “Ads & Extensions” in the second page menu on the left. Then click Extensions at the top of the page. Click the plus sign “Add” button, then click + Price extension. Choose the level you’d like to add the extension to by using the “Add to” drop-down menu. Depending on the complexity of your account you might want to go to ad group, campaign or account level. If you have several variations of the same product you might want to list all the variations at ad group level. If you have a service business with only 4 tiers you probably only need to create at account level.

Enter the price extension’s language, type, currency, and price qualifier (we advise that you test different ways of showing price qualifiers in order to maximise  performance.) Fill in the header, price, description, and final URL for each of the products or services that you want to feature.

You must enter a minimum of 3 items, but it’s recommended that you list 5 or more. You don’t need to use a different final URL for each row if you only have one available.

Extensions can be up to 25 characters per header and 25 characters per description, and your description or header may be shortened for narrower mobile screens. Keep in mind that your extension may also sometimes appear without a description. The price you provide may be truncated or rounded for display on mobile. For example, $12,345.67 might show as $12.4K.

Click “Save” to save your new price extension.

If you already have Price Extensions live and you want to change something, you need to click on the “Tools, Billing and Settings” button on the top right menu. And select “Business Data” under Setup. Click on “Main price extension feed” and you will be able to see all price extensions in your account and edit every single field.

Wrapping up

The results of our Price Extension tests are not a surprise for us. We could see more potential for e-commerce businesses, rather than lead generation, but the truth is that they can work for both sides.

A good strategy, followed by a close look at the performance can make the difference for your business.

Are you seeing the same performance as us? Share your insights and leave a comment below.


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