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Google has introduced a new feature known as Offer Extensions, which allows advertisers to display deals under their regular Google Search ads. This feature has been activated on for those advertisers whose accounts are upgraded to Enhanced Campaigns.

In case you are one such advertiser, you will be able to view the Offer Extension feature under the “Extensions” tab. For those advertisers that have not yet been upgraded to Enhanced Campaigns, Google will ensure that their accounts are upgraded by the end of February-2012.

Google had tried to launch similar campaigns in the past under different names, but had not achieved much success. In fact, the company also tried to buy out Groupon that had faced high levels of success in offering similar deals to advertisers, for 6 billion Dollars. However, Groupon rejected that offer, which in turn had prompted Google to launch their “Save to Wallet” offer, which allowed people to view and save digital coupons that could be used at a later date for online as well as in-store purchases.

However, even this offer could not lure advertisers or buyers and the company has come up with Offer Extensions in a renewed bid to oust Groupon while offering a new feature for AdWords advertisers at the same time. There are several advantages of using the Offer Extensions add-on once your AdWords account is upgraded.

This feature now enables you to track offline conversions, which in the past would have been very difficult. Online visitors may have seen your online ad, but may have made an in-store purchase. However, by tracking deal coupons that have been downloaded and used by your customers, you will be able to track online and offline conversions in an easy manner.

Your ads with attractive buttons will enable you to get more Ad space that can be clicked upon by interested viewers. You will certainly get much more SERP space, which in turn can boost click through rates as well as enable you to get higher Quality Scores.

Google’s Offer Extensions feature could potentially harm Groupon that takes a lion’s share of profits from deals, especially those that are highly discounted. In addition, users need to negotiate through Groupon representatives and cannot modify deals once they are posted. This, in turn offers a fabulous opportunity for Google, if it manages to offer a better deal for advertisers.

Groupon’s stock has decreased noticeably in the recent past and Google’s new feature could certainly deliver a killer punch to the company. Google might use ingenious methods to offer more to advertisers and users, which in turn would certainly affect revenues of sites such as Living Social and Groupon in coming times.

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