Posted by : Amanda Stein Sunday, January 13, 2013

Google has come up with an innovative strategy to popularize their PPC and site targeted ad service, Google AdWords: A Credit card for small business owners, dubbed AdWords Business Credit. After all, Google AdWords is a major revenue source for Google; it stood at nearly 11 billion, which was a 20% increase in the second quarter of 2012 from the previous year Q2.

It is an opportune time too, with many small businesses facing major problems with cash flow, and being short of ideas to advertise.

The Main Features

A low interest rate of 8.99% (the rate may be increased for customers with not so great creditworthiness) and the absence of an annual fee make this card very attractive, but then again you can only use it to purchase AdWords services. The service was initially offered only in the UK in partnership with Barclays’, and later extended to the US. In the States, it’s a MasterCard, being offered in partnership with Comenity Capital Bank.

The pilot program kicked off in July last year, with nearly 1500 business men involved in the testing, The majority of the users stated that they used the card to finance their Google AdWords efforts. A Google spokesperson claimed that the response was encouraging and positive.

The card is only being offered to certain select customers and is not available openly. The creditworthiness of the customer will be assessed using internal methods and external consulting. The company is rather tight lipped about the credit limit being offered to each customer. It is quite likely that the limit may be based on the customer’s previous spending history. Google has asserted that the main intention of launching this service was to provide low interest loans to customers in an economy where getting credit has become next to impossible.

How It Works

The bidding method works the same way. Entrepreneurs place bids on specific keywords. This way they can create ads that will be displayed along with the search results in the ‘sponsored links’ section. What this program does is that it provides a means for entrepreneurs to pay for their AdWords bids and campaigns and enables them to keep track of how much they spend on this kind of advertising.

A big downside of this card is that you cannot accumulate air miles with the expenditures on this card. This is a very popular benefit offered by most cards. However, Google spokespersons say that they are pretty sure this will not affect the popularity of the Google AdWords Business Credit card, thanks to the extremely low interest rates.

This is basically aimed at the small business owner, providing them a means to start and carry on with their business. This card will send reports to business credit agencies. This means that not only can you keep your business going; you can also increase the creditworthiness of your company. 

Google is not alone in this effort. Twitter, the social networking site, has also launched a DIY ad platform for small entrepreneurs. Facebook on the other hand, introduced a guide for the small entrepreneurs who are unable to hire an expert. Amazon too has come out with a lending scheme called Amazon Capital Services, again meant to help small businesses who are unable to obtain credit elsewhere. This seems to be a popular trend now, and it remains to be seen if Yahoo! and other software giants are going to follow suit. It is the opinion of industry pundits that in a couple of years, nearly ¾ of advertising efforts of small businesses will be spent on digital media.

Author Bio: Heather Protz, a freelance writer for - offers full home security to help protect your family, assets from burglary and other crimes.

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