The Value of Ad Extensions

With the increasing value of Ad extensions, AdWords continues to offer new types of Ad extensions to serve both the user and advertiser efficiently. Advertisers have seen an increase in conversions with promotion and price extensions that show current offers and specials, while others were glad to see the number of calls they received through call extensions and clicks on location extensions. And no one can deny the positive impact of callout and structure snippet extensions in not only providing more information to the user but also increasing the Ad estate on the search engine results page and CTR.

Example:

A quick example of an Ad extension’s impact on a user’s behavior is to imagine a user who saw 2 Ads (one with Ad extensions and the other without Ad extensions) for different dealerships:

Dealer A: Shows only an ad stating they have the searched vehicle in stock.

Dealer B: Shows an ad of the vehicle with Ad extensions that show the current offers on that vehicle, its features, available trims, the location of the dealership, business working hours and phone number in case the user had questions.

Which ad do you think the user will interact with? The one without extensions or the one with extensions? We’ll let our case study numbers at the end answer that.

But why are Ad extensions important to use? Ad extensions can:

  • Improve ad rank
  • Increase CTR
  • Lower CPC
  • Extend ad estate
  • Improve conversion rate
  • Lower cost/con
  • Lower bounce rate

How exactly?

Generally, with a higher quality score, an ad’s chances of showing at a higher position and lower cost increases.

With the right custom Ad extensions, we can increase the ad’s value and therefore its position and performance. This is our goal: to deliver the highest qualified traffic to convert at the lowest possible cost.

So is the case when it comes to analyzing users’ behavior and relating it to users’ intention that is reflected in the targeted keywords. Landing a user who’s interested in lease offers on an inventory page may lead to an avoidable bounce rate.

That is why Ad extensions that are smartly tailored to accommodate the users’ needs can help dealerships stand out against their competitors by helping the user take a direct action whether it is a visit to the nearest dealer through a location extension, scheduling a test drive or service through a sitelink extension, or calling through a call extension.

Case Study Results:

In a recent case study with one of our Honda dealership clients, Ad extensions helped with the following:

  • 60% conversion rate increase
  • 42% drop in cost/con
  • 166 clicks on message extension (Helps dealers capture leads during their off-hours, by allowing users to send the dealership a text message about an inquiry)
  • Average ad position improved 15%
  • 1,677 users getting direct directions to visit the dealership (By clicking the location extensions which opens the map on their mobile, guiding them with directions to the dealership)

During another recent study conducted to test Ad extension’s effect on a service campaign for one of our Toyota dealerships, we noticed promotion extensions had:

  • 53% higher conversion rate
  • 118% lower cost/con

In Conclusion:

Even though Ad extensions don’t get clicks as much as the main headline in the ad, they still serve a powerful supportive component to ads. One thing that is better than custom Ad extensions, is custom Ad extensions with custom landing pages to complete the user’s journey in reaching the ultimate goal, which is leads!

Contact us today to learn how Ad extensions and other components can help you get leads.

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