Google Maps introduces advertising, but SMEs ads restricted

Google Australia has introduced new advertising for its online maps application through which brands can provide a logo to display alongside local business listings, but it seems some SMEs may be cut out of the process.

While the new advertising model is currently being trialled by some businesses including National Australia Bank, JB Hi-Fi, BankWest and Chemist Warehouse, only businesses with “strong brands” will be given the opportunity to advertise their brand.

Matthew Leske, product manager of Google Maps, says the new model, which is currently being trialled in Australia ahead of a possible global launch, applies to businesses which have already established themselves across several locations.

“What we are looking for is interest from advertisers in Australia who have a strong brand. Users can then look at that strong brand and think, ‘that makes sense, I know what this logo is’, rather than having a logo there that confuses them.”

“So the businesses we’ll be working with tend to have more locations, franchises and things like that, because it’s easier to have substantial impact on the map that way, you impact more people. However, that’s not to say a strong brand with a single location wouldn’t be included.”

These logos will work alongside, rather than replace, the local business listings currently available for all businesses on the Google Maps app. However, the new offering suggests the internet giant is looking for new ways to gain revenue from its immensely popular feature.

“We have an initial set of five advertisers, and we wanted to make sure the locations we use are absolutely accurate and we went through a whole process of getting them verified. We are still doing that, with the program to go live in the next few weeks.”

But Leske also says the viability of advertisers will be determined on a location basis, so businesses in smaller towns will have a better chance of gaining an advertising spot.

“Brands which are recognisable can be extremely local. There may be a credit union in a small town or area that has operated as a strong brand in that town, so of course it makes sense to include them in that.”

Leske says the advertising model will be provided on a CPM basis, based on the number of people who view the logo. “The more times the logo is seen, the more the advertiser pays. The rates vary but we won’t be disclosing them publically.”

He maintains the new offering is designed so users gain the most out of their Google Maps experience, and believes there could be additions to the project if it takes off.

“Brands are a useful way of identifying places, and putting a company logo on the map helps people understand quickly what is there. We did some experimentation with this initial type of advertising, and we saw how people would react.”

“We have lots of different thoughts and ideas, but at the moment we want to see feedback from advertisers. We definitely want to listen to their feedback and respond, but in the end, anything we make will be about value for advertisers and end users.”