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Answer

Are Merchant Center promotions worth using?

By CartKernel ยท Last reviewed

In short

They are worth using whenever you are already running the offer, because they surface a discount you have already decided to pay for and cost nothing extra to publish. They add a special offer annotation to your free listings and Shopping ads, which gives a shopper a reason to click your listing rather than an identical one beside it. They are not worth inventing a discount for. If the promotion pushes contribution below your break-even, the annotation has bought attention with money you needed.

A promotion adds a reason to click without changing the price you show

The listing keeps its price and gains a clickable offer label. A shopper scanning a row of near identical products sees that one of them has something extra attached, and that difference does the work that a lower price would otherwise have to do.

The offer can take several shapes: an amount or percentage off, free or upgraded delivery, a free gift with purchase, or a buy more and save structure. Each is described in the promotion record with a start and end time, the products it applies to, and the terms a shopper has to meet.

What makes them efficient is that the cost is only paid on the orders that redeem. Unlike a price cut across the catalogue, a promotion attached to a minimum spend or to a specific product set can be aimed at the products where you have room, and turned off at the end date without the price ever moving.

They run on free product listings as well as paid Shopping, so a store with a healthy organic Shopping presence gets the annotation on traffic it is not paying for. That alone makes the setup work worth doing once and reusing every promotional period.

Approval depends on the offer being real and reachable

The single rule behind most rejections is that the shopper must be able to get exactly what the promotion says, on the products it says, without hunting. Google checks the destination, so the discount has to be visible on the site during the promotion window.

That means the code has to work, the cart has to apply it, and the conditions in the promotion record have to match the conditions on the store. A promotion that says twenty dollars off with no minimum, attached to a discount that actually requires a hundred dollar cart, will be rejected or will produce complaints. The same is true of dates: if the promotion runs from Friday, the store discount has to be live from Friday in the same time zone.

Set them up either directly in Merchant Center or with a promotions feed, which is the practical choice once you run more than a handful. Each promotion carries an identifier, and you attach it to products either by listing the products in the promotion or by adding the promotion identifier to the matching items in your product feed.

Allow review time before the sale starts. Promotions go through a check like any other content, so build them a few days ahead of the date rather than on the morning of the launch.

The maths that decides whether a promotion pays

Model the promotion as a cost per incremental order, not as a discount percentage. The cost is the discount multiplied by every order that redeems it, including the orders that would have happened anyway. The benefit is the extra contribution from orders that only happened because of the offer.

That is why threshold offers usually outperform blanket ones. A discount above a spend level pays out only on baskets that grew to reach it, and it lifts average order value at the same time, so both sides of the calculation move in your favour. A flat percentage off everything pays out on your best sellers, which needed no help.

Watch the interaction with your feed price and any sale price you have set. If you already dropped the price in the feed and then run a promotion on top, the combined discount can quietly take a product below cost. Check the worst case per product before publishing, especially on bundles and on anything with a heavy shipping cost.

After the period, compare contribution across the window with a comparable non-promotional window, not just revenue. Revenue almost always rises during a discount. Contribution is the number that tells you whether the promotion was worth running again.

When to skip promotions entirely

Skip them when the discount would be permanent. An offer that never ends stops being an offer, the annotation loses whatever pull it had, and you have simply lowered your price with extra steps. Change the price in the feed instead and let the price competitiveness reports show you where that leaves you.

Skip them on premium and controlled-distribution brands where a visible discount conflicts with how the product is positioned, or where a supplier agreement sets a minimum advertised price. In those cases the equivalent lever is a delivery upgrade or a value-add that does not appear as money off.

Skip them on products with thin contribution, on heavy or bulky items where you already absorb a large delivery cost, and on anything close to being out of stock. Driving extra demand into a product you cannot restock spends the discount and then disappoints the buyer.

Threshold offer against a blanket offer

Normal average order value
$58.00
Blanket offer
15 percent off everything
Discount paid per order
$8.70
Threshold offer
$12 off orders over $75
Average order value at threshold
$79.00
Discount paid per qualifying order
$12.00
Extra revenue per qualifying order
$21.00
Net position on that order
Better, if margin on the extra $21 exceeds $12

Illustrative figures. The comparison is the point: a threshold offer only pays out when the basket grew, while a blanket offer pays out on every order including the ones you already had.

Related questions

Do Merchant Center promotions cost anything to run?

Publishing them costs nothing beyond the discount you honour. There is no extra fee for the annotation and no separate bid. The real cost is the redeemed discount, so the decision is a margin decision rather than an advertising budget decision.

Do promotions appear on free product listings as well as ads?

Yes, the offer annotation can appear on both free listings and Shopping ads once the promotion is approved and the products are matched to it. That is one of the reasons the setup work pays back, because part of the benefit lands on traffic you are not bidding for.

Does a promotion need a discount code?

Not always. A promotion can be applied automatically at checkout or can require a code the shopper enters. Automatic application usually converts better because it removes a step, but whichever you choose, the promotion record and the store behaviour have to describe the same thing.

How far ahead should I create a promotion?

Build it several days before the offer goes live so there is room for review and for a fix if something is rejected. Creating promotions on the morning of a sale is the most common reason an offer runs for a day without its annotation showing.

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