Sneaky Google Checkout Helps Click-Through Rate
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.
If I were looking for a desk to buy and typed in the word “desk” without quotes into Google and received this group of ads, I might be enticed to click the one with the Google Checkout icon just because it looks different. On a gut reaction, which one would you click? Normally searchers perceive the first few ads as the most relevant, all factors being equal, but the Google Checkout icon may draw more attention and curiosity clicks. The fourth ad pays less, and will possibly receive more clicks than number three, two, possibly even number one, thus increasing CTR and giving the advertiser more clicks for the money.
Category: Internet Marketing
