PPC Budgets Rise: Direct Offers & Shopping Promos

This week brings significant updates from Google Ads, focusing on tools that give advertisers more precise control over promotional spending and how offers are presented to potential customers. The changes include a new open beta for campaign total budgets, a pilot program for showcasing discounts directly within AI search results, and important revisions to Shopping campaign promotion policies set for 2026. While these developments don’t rewrite the fundamental rules of pay-per-click advertising, they streamline execution and introduce new ways to connect with shoppers at critical decision-making moments.

Google has moved its campaign total budgets feature into an open beta, making it available for Search, Performance Max, and Shopping campaigns. This approach replaces the traditional daily budget model. Instead, advertisers can allocate a fixed amount of money for a campaign that runs for a set period, between three and ninety days. The system then automatically manages the spending pace to use the entire budget by the campaign’s end date, adapting to market demand rather than forcing spend at the start or finish. This option is tailored for short-term initiatives like sales events, seasonal pushes, or limited tests, and is selected during the initial campaign setup.

For teams managing time-sensitive promotions, this update addresses a frequent operational headache. Promotional campaigns often require constant daily budget tweaks to stay on track, a process that consumes time and introduces risk. Total budgets shift that work to the planning stage; advertisers set a spending limit in advance and let Google’s automation handle the daily pacing. This is particularly useful for retail promotions with pre-approved media funds, short-term tests where going over budget is not an option, and teams juggling multiple campaigns with limited bandwidth. It’s important to note that total budgets do not guarantee full delivery, if targeting, bids, or inventory limit demand, spend might still fall short. Advertisers should watch early performance indicators and be prepared to adjust other campaign inputs if pacing seems slow.

Feedback from the PPC community has been largely favorable. Many experts express enthusiasm for a feature that simplifies budget management for fixed-period campaigns. Some feedback points to a desire for even more control, such as the ability to allocate a Performance Max budget across specific placements beyond just YouTube and Search.

In a separate development, Google is testing a new pilot called Direct Offers. This initiative allows advertisers to present exclusive discounts directly within AI Mode search experiences. As more shoppers use AI-powered tools for product discovery, Google is exploring ways to introduce special offers at the precise moment when purchase intent is high but a final decision hasn’t been made. Participating advertisers can configure discounts in their campaign settings. Google’s AI then decides when to display the offer based on the user’s query and shopping context. The pilot starts with discounts, with plans to later include other incentives like bundles or free shipping. Several major retailers and brands are already involved in the early testing.

This pilot aims to reduce friction by bringing the promotional incentive directly into the discovery experience, rather than making users click through to a website to find it. It connects to Google’s larger effort to create a more seamless commerce infrastructure. If successful, promotions could become an integral part of the initial buying signal within AI-driven results. For advertisers, this raises important strategic questions about how often offers might improve ad visibility versus just boosting conversions, how discounts will be tied to eligibility, and how to balance promotional activity with maintaining healthy profit margins.

Industry commentary shows keen interest mixed with practical questions. Professionals are curious about the level of control advertisers will retain, how the system will factor in considerations like product margins or inventory levels, and what kind of reporting will be available to measure the impact of these direct offers.

Finally, Google has confirmed several updates to its Shopping promotions policy, effective in January 2026. The key revisions include official support for promoting subscription fees and trials, permission to use common promotional abbreviations like BOGO or MSRP without policy violations, and new options for payment method-based promotions specifically in the Brazilian market. Subscription businesses can now promote discounted plans or free trials by selecting a “Subscribe and save” eligibility requirement in Merchant Center.

These policy adjustments reflect a more pragmatic alignment with how modern commerce works. Subscription-based companies previously faced hurdles when trying to promote their offers through Shopping ads. Allowing standard abbreviations reduces setup friction and prevents unnecessary approval delays, as many advertisers already use these terms in other marketing channels. For brands operating in Brazil, the new payment method promotions provide a localized incentive tool to test.

A common theme across this week’s announcements is the shifting nature of spend control. Google is moving key decisions upstream in the campaign process. Total budgets require upfront commitment with automated pacing, Direct Offers test the automated injection of promotions based on intent, and policy updates remove manual friction from how offers are set up. The underlying strategy, thoughtful budget allocation, compelling offer design, and clear eligibility, remains crucial. However, the platforms are increasingly handling the intricate mechanics of execution, allowing advertisers to focus more on strategic inputs.

(Source: Search Engine Journal)