Google Map’s New Cost-per-Click Ad Service
https://www.wordstream.com/blog/ws/2016/06/01/google-maps-local-search-ads
This past summer, Google decided to revamp their ad service and introduce new “Promoted Pins” into their Maps platform. Theses promoted pins will show up on Google Maps displays, primarily on mobile devices, and will recommend local spots for the users to spot at, based on what they are searching. Google’s algorithm to display ads factors in Search History, Queries, Location, User Behaviors and many more things into decided what ad to recommend to the user, and the add is displayed on the Maps’ interface as a large purple pin that points to the logo of the business. Additionally, when someone touches on a promoted pin, they will be directed to a page that the business can customize where they can display details such as hours, address, phone number, or even special deals and promotions. Google is implementing this because they have research that support the notions that: 90% of all global sales will happen in stores as opposed to online, around a third of all mobile searches are location related and it will continue to grow, and 84% of consumers conduct local searches (Kim, 2018). Clearly, they believe that they should show more local shops that users can physically visit when displaying search results.
As we learned about in class, there are two different ways to charge advertisers: charging them for impression and charging them per click, commonly called “pay-per-click”. Google uses the pay-per-click method on this service, as they charge advertisers each time someone clicks on the advertisement that is displayed. This method of charging the advertisers is most advantageous for both parties, given the circumstances. It is likely that certain businesses will get viewed much less than others depending on their location and the type of business, so it would be unfair to certain businesses if Google charged for impression because they would have to pay the same amount as a business that get many more clicks & are therefore more benefited by the system. Depending on the company providing the slot for the ad, they could choose to make the advertiser’s values per click public or private, but Google uses a GSP generalized SPA. Google understands that by implementing this, they can find market clearing prices while also ensuring that the advertisers that are displayed on their maps service will have their total valuation maximized.
As Google continues to grow as a company and a brand, the demand for advertising on their services will continue to grow. By adding promotional pay-per-click ads to their maps service, Google has opened more opportunities for more advertisers to get their name and brand displayed in the search industry.