Google announced a new advertising feature called Direct Offers today. This tool is designed to negotiate deals with high-intent shoppers within Google’s AI Mode. It moves beyond static ads by using real-time data to present exclusive discounts when a purchase is likely.
How Direct Offers Work
Direct Offers functions like a digital salesperson. Instead of displaying static ads based on rigid rules, Google’s system analyzes shopper intent and market context in real-time. If it detects a user is interested but hesitant, it intervenes with a “Sponsored deal” to close the sale.
This feature currently runs alongside existing Performance Max and Standard Shopping campaigns. It is designed to drive incremental conversions—capturing sales that might otherwise be lost—rather than replacing current strategies.
Maintaining Merchant Control
Advertisers retain full control over the discounts. The system does not generate prices on its own; it relies strictly on promo codes and data uploaded by the retailer to the Merchant Center.
Google is currently testing Direct Offers with select partners, including Petco, e.l.f. Cosmetics, and Rugs USA. While the pilot currently focuses on percentage-off discounts, Google plans to expand the capability to include bundles and free shipping offers in the future.
What This Means for Merchants
- Higher Conversion Rates: By targeting only those who need a nudge rather than blanketing an audience with coupons, merchants can protect margins while increasing sales volume.
- Automated Negotiation: The tool automates the “haggling” process. It identifies the moment a browser becomes a buyer and applies the necessary incentive without manual intervention.
- Complementary Strategy: Merchants do not need to overhaul their current ad setups. Direct Offers acts as an add-on layer to specific product views.
