Looking for the closest pizza joint? Need to find an ATM? Google wants to help.
Google in recent months has unleashed a flurry of new local services and advertising formats and expanded others. In an especially noticeable change to its search results, last October it tweaked its search engine to make local businesses and listings, including Google Places, much more prominent in response to a likely local-oriented query. The same month, Google moved Marissa Mayer, its high-profile VP-search products and user experience, to VP-consumer products, where her main job will be developing new geographic and local services.
“The core piece is really making the local business work,” said Ms. Mayer. Google’s overriding goal in local advertising, she said, is to anticipate what people might want — a nearby restaurant, theater, or mechanic depending on their location, search history and other data — before they actually know it.
Google Places presents significant revenue potential for the company. The online piece of the venerable $91 billion local business, whose sales channels include everything from Yellow Pages and newspaper ads to Google search ads and online directories such as CitySearch, will grow 18% this year, to $15.9 billion, according to market researcher Borrell Associates. That’s more than online advertising overall, forecast for 14% growth.
Even more interesting is Google’s other motivation. Google’s interest in local advertising is also defensive. New marketing methods and channels, from social network Facebook to daily-deal service Groupon to review site Yelp offer merchants and service providers simpler and sometimes cheaper alternatives to Google’s search ads. Google expects search-ad spending by small- and medium-sized businesses to fall by 10% by 2015 as a result. Facebook, in particular, just became the most-popular marketing channel for local businesses, with 70% using it vs. 66% that use Google’s search ads, according to a recent survey of 8,500 businesses by small-business social network MerchantCircle.
Mayer’s emphasis on anticipating what I want before I even know I want it kind of creeps me out. Somehow it feels a bit like Google is standing over my shoulder at all times trying to create an algorithm for my preferences and tendencies…neither of which I think are any of Google’s business. Just the same, Google’s Places has potential to benefit businesses and consumers – which is a good thing.
Excerpts from Advertising Age.
