Google has launched Direct Offers, a new shopping feature that allows retailers to show exclusive discounts directly in AI Mode. According to the company, the feature is currently running as a pilot and is part of Google Ads. Advertisers can set up offers, such as 20% off, in their campaign settings. The AI then decides when to display the offer based on shopper intent and market context.

How Direct Offers appear during a search

When a shopper is searching with clear buying intent, Google may show a discount from a relevant retailer alongside product suggestions. Google says this gives shoppers access to deals at the point where they are already considering a purchase.

According to Google’s example, if a shopper searches for “a modern, stylish rug for a high-traffic dining room” and mentions that ease of cleaning is important, the system will show products that match those criteria. With Direct Offers, the AI can also highlight a relevant discount for that product if one is available.

Integration with Google Ads campaigns

Google says Direct Offers work alongside Performance Max (PMax) and Standard Shopping campaigns. Advertisers do not need to manually guess which shoppers should see a discount. Google says the AI evaluates the product, shopper behavior, and market conditions to show the offer when it is most likely to lead to a sale.

How advertisers set up Direct Offers

Retailers can configure Direct Offers within their campaign settings. Advertisers can upload verified promo codes through their Merchant Center feed, and those codes become eligible to appear when Google’s systems determine relevance.

Google says the system does not invent deals. Only verified promotions from the retailer’s Merchant Center feed, including specific promo codes, are used. The company says advertisers should not think of Direct Offers as a standard display ad. Instead, it describes the feature as a dynamic discount that appears when shopper intent and market signals suggest it could influence a purchase decision.

Focus and future expansion

Google says it plans to expand Direct Offers to include other offer types, such as product bundles or free shipping, which can help shoppers prioritize value beyond just price. The pilot is currently being tested with retailers like Petco, e.l.f. Cosmetics, Samsonite, Rugs USA, and Shopify merchants. 

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