Google’s online payment service, Google Checkout, looks more and more like a deadly rival to eBay’s Paypal… so we learned, after chatting with Patrick Chanezon, a Google API evangelist, at yesterday’s Salesforce.com/Google event.

Google Checkout and AdWords: a virtuous circle

Google Checkout and AdWords are creating a virtuous circle. If you’re a merchant and uses both Checkout and AdWords to buy keywords, there’s a little shopping cart logo that appears under your Google Ad. What we realised is that people click more on these ads, increasing your click-through rate than the ones without the Checkout shopping cart. And, as you know, when your CPR (cost per read) is high, you pay less for your ads. Bottom line, you pay less for your ad campaign and more people come to your site.

More on our sister site UberPulse.

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