Google pilots Local Coupons for retailers, charging only on redemption

Google has begun a pilot of Local Coupons, a Search ads offering that displays discounts to nearby shoppers and stores the coupon in their mobile wallet for in-store use. Retailers are charged only when a shopper actually redeems the coupon at checkout, linking the ad directly to an in-store sale. Each coupon carries a unique code that the register verifies at scan time to prevent double redemption.

Google has not disclosed which retailers are participating in the pilot or when it might expand the program more widely. The service aims to give advertisers a measurable connection between online search activity and physical store purchases.

What we know

• Google is piloting Local Coupons, a Search ads product that shows nearby shoppers discounts at local stores and saves the coupon to their phone’s wallet for use at the register.

• Retailers pay Google only when a shopper actually uses the coupon at checkout.

• Each coupon carries a unique code, and the register checks it at scan time so it can’t be redeemed twice.

• Google hasn’t said which retailers are in the pilot or when it will open more widely.