Yahoo announced a partnership today with PayPal to integrate the shopping system into their search ads. A sample is below:

Yahoo Ad

From Yahoo’s new PayPal site:

With the Yahoo! PayPal Checkout Program, a blue shopping cart icon appears next to your ad in Yahoo! search results. This can help your ad stand out, and let customers know you offer PayPal Express Checkout, from the brand known for security.

This is definitely an interesting move given that Yahoo had to respond to the recent Google Checkout initiative. Looking at the options on the table they could have either A – built their own system and hoped for global adoption B – purchase a smaller checkout system with a user base or C – partner with the largest checkout system, over 130 million users. Option C seemed to be the best option pairing up with PayPal. I will be watching this space closely to see how they integrate PayPal into the Yahoo search ads and what types of changes this means to advertisers. At the moment they are claiming that everything will be free which seems to be the offer de jour on the Internet. I am sure Yahoo has some brand name advertisers lined to test out and feature the new system and I will post more information when it becomes available.

[tags] search marketing, search engine marketing, Yahoo, PayPal, Yahoo PayPal, Marketing.fm, marketing, online marketing, advertising, SEM, Google, Google Checkout [/tags]