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Google Tests Product Search Ads

Google has begun testing a new ad format that will show people who search for products like shoes and televisions specific information such as price and product image, The Wall Street Journal reports, citing an email Google sent to advertisers advising them of the new format. In the email, Google said the product test would initially only be visible to a small number of U.S. users, but would one day "complement standard text ads on Google.com."

The Journal's Jessica Vascellaro notes that the move comes at a time when Google has been trying to squeeze more ads in more places as its core search business matures. It could also be in direct response to Microsoft's new search engine, Bing, which offers particularly strong competition in the area of online shopping. Bing returns more images and prices for product related searches than Google, and also allows advertisers to participate in a cash back program where Microsoft gives ad revenue it receives back to consumers in the form of product discounts.

Unlike standard search ads, where advertisers pay per click, Google only charges product advertisers when users make a purchase. Advertisers set the commission price, then Google decides which product ads to display based on the commission, how relevant the ad is, and how often people click on the ads. To participate in the service, retailers have to submit a feed of their products through Google's classified listings service, Google Base.

Read the whole story at The Wall Street Journal »

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