About automated discounts in Merchant Center

Automated discounts is an AI-powered solution that dynamically adjusts product price discounts on Shopping Ads. It’s designed to help you effectively maximize gross profit performance across your entire inventory.

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Benefits

  • Effective pricing: Leverage advanced Google AI to continuously optimize and display the ideal sale prices for your products consistently across your Shopping Ads and your online shop’s product landing page.
  • Increased performance: Unlock significant lift in gross profit, conversions, and consumer clicks, and increase ROI on ad spend.
  • Ease of use: Get optimized prices continuously, consistently and automatically and save time, effort and cost.

How it works

Leveraging advanced AI modeling, Google determines the most effective sale price of your opted-in products with the objective of maximizing gross profit across your Merchant Center product inventory.

The most effective sale price will automatically be displayed for customers clicking on your Shopping Ads and consistently shown on your online store’s product landing page. You’ll find the incremental performance benefit across the entire product inventory for key performance parameters such as gross profit, ad spend, orders, clicks, and impressions.

Stay in control anytime by pausing or activating automated discounts using the “Pause” and “Activate” buttons.

To view your performance, navigate to the “Marketing” page in Merchant Center. The “Automated Discounts” tab displays performance uplift metrics across your inventory, traffic with optimized sale prices, and product inventory coverage.

Note: The "Automated discounts" performance uplift metrics are only available once your setup process is successfully completed.

What’s available?

Performance uplift across your inventory

Explore the incremental uplift across key performance indicators such as gross profit, revenue, ad spend, orders and clicks. Metrics are shown across your entire inventory for the selected time period.

Note: Values for performance metrics appear only after statistical significance is reached.

Your performance from products with optimized sale prices. Find out key performance indicators such as gross profit, revenue, ad spend, orders and clicks of your products with AI- optimized sale prices. The chart shows the value of the selected metric and time period.

Product inventory coverage. Assess how many products are opted-in and how many of these products currently benefit from optimized sales prices.

Explanations on available metrics

  • Gross profit is the amount you made from all transactions from attributed clicks on your Shopping Ads after subtracting the cost of goods sold. For example, gross profit = revenue - cost of goods sold.
  • Revenue is the amount you made from all transactions from attributed clicks on your Shopping Ads.
  • Ad spend is the amount you pay for Shopping Ads for active products you uploaded to this Merchant Center account.
  • Orders are the number of times your Shopping Ads led to an order from your online store.
  • Clicks are the number of times a consumer clicked on your Shopping Ads to view a product in your online store.
  • Impressions are the number of times a consumer viewed products on your Shopping Ads.
  • Opted-in products show how many products are currently enabled to participate in automated discounts. If you expect more products to be opted-in, check if you have provided valid minimum price and cost of goods sold values and allow 24 hours to see changes.
  • Discounted shows how many products are currently being discounted. Products will only be discounted if it benefits the overall goal of maximizing profit across your entire inventory.
  • Not-discounted shows how many opted-in products are currently not being discounted. Products will only be discounted if it benefits the overall goal of maximizing profit across your entire inventory.
  • Opted-out shows how many products are currently not enabled to participate in automated discounts. Consider to opt in more products as maximizing profit across your entire inventory is most efficient if you opt-in all products in your inventory.

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