Happy holidays, indeed--and a big ouch for eBay. The promotion means no merchant in his or her right mind wouldn't want to sign up for and use
Google Checkout. Grossberg, for example, is so happy about the good tidings Checkout brings, that he plans to begin a new marketing strategy next year. Place more ads alongside Google's search results
at the expense of paid listings on eBay.
That's precisely what the search giant wants most from Checkout: more search advertisers. And the plan seems to be working, as usage has
skyrocketed, and many merchants already use Checkout more than eBay's market-leading PayPal.
Goldman Sachs estimates that the Checkout promotion costs Google about $20 million--nothing to a company with a market cap of $125 billion. As Stifel Nicolaus & Company analyst Scott Devitt says, "Checkout could be a game changer, and the competitors are doing nothing of the sort."