AdWords has always been Google’s money maker and the company is always on a quest to make it more and more profitable. With that in mind, the company recently announced its maiden venture into the world of vendor financing with the launch of the AdWords Credit Card.
And as with all credit cards, there is a catch – it is only for selected business owners in the US AND it can only be used to buy AdWords advertising from Google.
A Mastercard that will be issued by the World Financial Capital Bank, the AdWords credit card’s selling point is the strategically low 8.99% interest rate & no annual fee, although full details on the available credit limit and number of cards being issued is still not known.
Google isnt the first company to release this type of credit card. IBM, Amazon and Macys all offer similar cards to build their clientele and strengthen the customer loyalty by tracking their online spending habits.
Google’s Treasurer, Brent Callinicos, said that the credit card will be offered to a “statistically significant” number of people during its beta testing and will track the usage of the card to analyze how availability of the card affects customer spending behavior.
Even though (availability) will skew toward the smaller businesses, obviously we want to cast a wide enough net so we can see what resonates depending on your historical monthly spend.
With the AdWords credit card, Google is attempting two things:
- To simplify the process for small businesses of purchasing search advertising , but do not have that kind of cash available readily. This will be especially important for the competitive holiday seasons.
- Having faced stiff competition in search advertising recently, from its counterparts like Microsoft, Yahoo and Facebook, the search giant needed to come up with something new to give them the edge over these competitors.
Would you consider using Google’s credit card to purchase ads? I would love to hear your thoughts.