It seems the new Google Checkout system, publicly stated not to rival PayPal, might be helping click-through rates for sponsored site links surrounding Google search results. Google AdWords rewards advertisers who receive a higher click-through rate with a higher position without having to bid more. Surfers vote with his or her mouse, usually clicking on the most relevent, most enticing ad. AdWords uses a formula taking into account how much the maximum bid an advertiser is willing to pay, mulitplied by the percentage of click-through the ad received in proportion to how many times the ad was seen. So it seems Google is now rewarding AdWords advertisers with potential for higher click-through with the added Google Checkout icon. This is assuming that Google Checkout is a selling point for someone choosing your offer over another.

Read the rest of this entry »