Search Engine Journal noticed last month that Google was testing new Checkout badges used in AdWord ads. Google announced on Tuesday it was permanently changing the badges from a simple shopping cart image. Now, AdWord ads in which the merchant accepts Google's payment processing service will display the words "Google Checkout" along with a small shopping cart image. Google made the announcement on its Official Google Checkout blog.
Google has confirmed that the Google Checkout badges increased click-through rates for AdWord ads. During Google's recent fourth-quarter earnings conference call, Google SVP of Product Management Jonathan Rosenberg said Google Checkout is, in many cases, increasing the click-through rate for the advertisers.
Google's competitors may be taking notice. ChannelAdvisor CEO Scot Wingo said on his blog last week that Yahoo may be planning to display PayPal badges on its paid-search ads similar to the Google Checkout badges on Google AdWord ads.