Google to Offer Credit Cards for Advertisers

In order to encourage small and medium-sized companies to advertise on its platform, Google is offering credit cards. Google hopes to help businesses that could not afford a big advertisement campaign during big sales season due to resource constraints and cash flow straps.

This is the first time Google financing vendors. It allows marketers to spend more on its search ads when they need it.No annual fee is needed for the credit card but it can only be used to buy search advertising on the search engine.

Facing rising competition from its rivals such as Facebook, Microsoft and Yahoo, Google came out with this strategy to fight for the pie of advertising revenue. 96 percent of their revenue is contributed by AdWords, small ads that appear alongside its search results. The AdWords card is a MasterCard that will be issued through the World Financial Capital Bank.

Google’s Treasurer, Brent Callinicos, said the card will be offered to a “statistically significant” number of people as Google checks the results on how availability of the card affects customer spending behavior.Customers’ creditworthiness will be evaluated through a combination of internal efforts and with the help of  a financial partner. Details such as minimum and maximum credit lines available for the card and number of people to whom the card will be offered are not released yet.

Google stressed that the main objective of the card is to provide loan to Google customer rather than a financial engineering project. It is more like providing customer need.

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