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A Look at Google's Comparison Ads Tool

ryan-frank | Nov 27, 2009 |

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In early November, Google officially launched its new Comparison Ads tool, which allows users to view different advertisers' offers side by side so that they (the users) can compare rates and request information from the various vendors. So far, the tool is only available for businesses in the mortgage and refinance industries, but the search engine giant's hope is to eventually expand the Comparison Ads tool to other industries, a development that would put Google in competition with ecommerce sites like BizRate and Shopzilla.

So how does the Comparison Ads tool work exactly? Basically, it displays relevant vendor offers in a single search results page. The user starts by searching on the regular Google Search home page. On the regular results page, the Comparison Ads tool appears at the top of the list, and it asks users to narrow down their query further. Once users do this, they are directed to a page that has a list of the different advertisers' offers and rates.

For example, if you type in "mortgage" as your search query, the Comparison Ads tool will ask you if you to specify whether you're looking to "buy a home" or "refinance". Once you've picked, you'll get a list of lender offers with APR rates. Once on this page, you can make your search more specific by providing information like your state and country, the size of the loan you're looking for, your income and your credit rating. The rates shown by the Comparison Ads tool are, supposedly, not teaser rates, but realistic estimates that users should be able to trust.

If the user is interested in a particular offer, they can get a contact phone number or fill out a form and request a quote by clicking on the "Request Quote" button. The Google Comparison Ads service works on a model like services for pay per click management, so businesses who advertize through it are only charged when they're phone number is called or if a request quote form is received.

Nick Fox, the director of product management of AdWords at Google stated the following, concerning the idea behind the Comparison Ads: "If you're looking for a mortgage, you really care about a specific offer. You want to know the APR and based on your specific circumstances"

Currently there are no concrete plans for expanding the Ads tool to other industries. Google is using the mortgage experiment as a testing ground for ideas before moving further with the project. The Comparison Ads tool is currently only available in the U.S. and only in certain states.