Google publishes new guide on Shopping ads pricing

Google has released a comprehensive “Understanding Product Pricing” guide to help merchants navigate the complex rules and options for pricing in Shopping ads and free listings.

Core concepts. The guide breaks down the fundamentals merchants need to get right:

• Price: The standard product price without discounts or promotions.
• Sale price: A temporary lower price shown with annotations highlighting both the original and discounted prices.
• Price drop annotations: Signals when a product’s price has decreased significantly, making deals easier to spot.

What else is new. Beyond the basics, the guide outlines advanced pricing capabilities:

• Automation: Automatic price updates to fix discrepancies, AI-powered automated discounts across inventory, and currency conversion for international reach.
• Special programs: Options for regional pricing, promotion-based discounts, and loyalty-specific pricing to reward members.
• Flexible payments: Merchants can showcase subscription costs or installment breakdowns to give shoppers more choice.

Why we care. Pricing is one of the most visible — and competitive — aspects of Shopping ads. With multiple formats like sales, promotions, and loyalty discounts, ensuring accuracy and clarity can directly impact click-throughs and conversions.

The bigger picture. Many of these features display as annotations directly on ads and free listings, giving consumers immediate visibility into deals, discounts, and payment flexibility. That transparency not only builds trust but also improves ad performance.

The bottom line. Google’s new pricing guide arms merchants with a roadmap for using every available lever — from sale price annotations to AI-driven discounts — to keep Shopping ads accurate, competitive, and consumer-friendly.