Advertisers opting for Product Ads will automatically have product images and other details pulled into search query results. These types of ads get more click-throughs than text-only ads as well as higher conversion rates, according to Google.
While Product Ads appear via search queries, the payment method differs from traditional pay-per-click. With Product Ads, marketers pay only if there is a resulting purchase of the product they wish to display, a process called cost-per-action. Google will share in the sales revenue.