Google Checkout and AdWords

Thursday, July 13, 2006

Posted by Gavin Chan, Associate Product Marketing Manager

We’re seeing a lot of excitement and questions about how Google Checkout works with AdWords, so we thought we’d answer some of them here. Here are a few of the more common questions we're hearing:

What is AdWords?

AdWords is Google’s search advertising program, which displays ads alongside Google search results and on search and content sites in the Google Network. When you create an AdWords ad, you choose keywords for which your ad will appear and specify the maximum amount you're willing to pay for each click. Your ads are then displayed when people search using the keywords you’ve selected; you only pay when someone clicks on your ad.

Can I offer Google Checkout if I don’t use AdWords?

Definitely! You can still provide your customers with a fast, safe, and convenient checkout experience. As far as fees go, you’ll only be charged 2% plus 20 cents per transaction for the sales you process through Google Checkout.

What are the benefits of using Google Checkout with AdWords?

There are two main features you can take advantage of when using both programs together: the Google Checkout badge and free transaction processing. The Google Checkout badge is a small shopping cart icon that appears on your AdWords ads when you offer Google Checkout on your website. It communicates to buyers that shopping with you will be fast, convenient and secure.

Free transaction processing enables you to process $10 of Google Checkout sales at no cost for every $1 you spend on AdWords. For example, if you spent $1,000 on AdWords last month, this month you could process $10,000 in Google Checkout sales for free.

Why is Google Checkout integrated with AdWords?

Our goal is to improve the entire online sales process for sellers, from generating leads through online advertising to processing the sales that result. Shoppers often begin the purchase process by searching online and looking for places to buy. One interesting stat from Shop.org: 37% of all online purchases start with a search. When shoppers search, the Google Checkout badge helps turn more of these queries into leads by making it easy for users to identify stores that accept Google Checkout. Once customers click through to the store and are ready to buy, Google Checkout offers a streamlined checkout process that helps convert those leads in to sales. Finally, when it’s time to process sales, Google Checkout works with AdWords to reduce transaction processing fees to zero. We think there's a natural relationship between online advertising and transaction processing -- and that's why you see the integration at every step in the online sales and marketing process.