Jul 23, 2011 113 reads by Navneet Kaushal

The search engine giant has ventured into a whole new field- Finance. This is Google's way of assisting their clients-through a credit card. Yes, there is a Google Credit Card now. And here is the brief about it:

What is it called- AdWords Business Credit Card

Who can use it- US based advertisers.

What can you get with it- Only one thing- Google AdWords

AdWords Credit Card

That is the gist of it, with this credit card, you can buy search advertising on the Search Giant. The launch of this AdWords Credit Card is for online advertisers, who want to make the most of Google AdWords, but don't have the ready cash. Google is offering its clients a credit line to work on their businesses without worrying about any immediate payments.


Like all credit cards, the Google one also comes with certain credit details. It is a MasterCard, whichthe World Financial Capital Bank will issue. The annual interest rate on the Credit is matching the market rate of 8.99% , and the user will not be charged with any annual fee.

The vice president of global online sales at Google, Claire Johnson, explained to Reuters that the credit card is "designed to help small and medium-sized businesses that advertise on Google but who often don't have the funds to support a heavy ad campaign ahead of a big sales season, such as Valentine's Day or Halloween."

In the US, prior to Google companies like IBM, Macy's Inc. and Amazon.com have come forward with vendor assistance programs. Some have issued credit cards, so that the purchase by a customer becomes more probable. Other benefits of issuing a credit card include- generating consumer loyalty, and also tracking spending habits.
The card will initially be available as a "beta" test, available to select users. There are certain questions unanswered though:
  • Who will get the credit card?
  • How many will get the card?
  • How will Google determine the creditworthiness of a client?
  • Will they sign up with a financial partner?
  • What will be the minimum and maximum credit lines available?

On these questions, Brent Callinicos, Google's Treasurer, elaborated that the credit card will be offered to a "statistically significant" number of people. Then the company will analyse how availability of the card affects customer spending behavior. Brent said, "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,".

Now, some light on why is Google bringing out a credit card now:

To get ahead of competition: The search engine is losing its advertisers to competition sites like Yahoo. The social platform Facebook is even a bigger threat to Google' business, as more and more advertisers are turning to Facebook. So, providing the users with a AdWords Credit Card will inspire consumer loyalty.


Google has cash to spare: The search engine giant makes money through advertising. Infact 96% of its income is from search based advertising. At present Google is sitting on a cash pile of $39.1 billion (marketable securities included, figures estimated on June 30)

This new venture from Google has already made news. Let's see how is the advertisers' response to this. Will Facebook or Yahoo follow suit, that also remains to be seen.

Navneet Kaushal

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
Navneet Kaushal
Navneet Kaushal
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