Google Maps Test Ads in Australia

In a move that might be a preview for the rest of the world, Google has implemented sponsored icons on Google Maps in Australia.

These icons — which represent establishments like Bankwest and JB Hi-Fi — feature company logos rather than generic establishment icons.

This program, which is being launched in Australia  for testing, differs from Google’s traditional ad system. As the Sydney Morning Herald points out, these ads (or logos, really) are not purchased AdWords-style, but instead rely on number of impressions.

Additionally, companies must be deemed relevant by Google for their logos to appear. Google will determine the relevancy based on the context of a user’s search, inbound links and event Wikipedia entries. Furthermore, if users don’t interact with the location’s ad — by hovering over it and clicking through for more information — it will disappear.

Google’s goal is the highlight the most relevant businesses based on search. At least in Australia, Google is also charging some types of businesses less than others — pricing is based on what value those establishments provide. So an ATM or gas station would be charged less per impression than a retail store.

This is an interesting approach to location based advertising — something we fully expect to become a bigger and bigger trend as the year goes on. It will be interesting to see what kind of results and feedback Google gets from the trial in Australia and how sponsored locations end up being implemented in other countries and across other platforms.