Mountain View, California — Attempting to win over its rival Yahoo’s local ad unit model, Google has finally introduced a more novel and simplified version of short ad unit for local businesses called Local Listing Ads.
These Local Listing Ads are configured to display when users search for a business in its local area and will contain only basic information about a business, such as contact info and a link. The units will appear on Google.com in local results at the top of the results page, and in Google Maps. The new ads will be displayed at the top of a search results page when users conduct a geographic search for a category related to an advertiser’s business.
Google says it is the most simplified way to advertise your business to local customers on Google, because they require no maintenance. The ads are not intended to compete with Google AdWords and will be more or less self-serve for business owners.
Following is how your ads would appear on Google.com and on Google Maps:
"Unlike Google AdWords, Local Listing Ads require no management of ad creative, keywords, bidding or budget management,” the company says.
Also unlike AdWords, the Local Listing Ads will not be sold according to pay-per-click bidding via auction. The ads will rather than be traded for a flat monthly fee, depending upon the company’s location and business category.
“Once you select a standard category that best describes your business, Google determines the cost that ensures the ad is seen by the highest number of people looking for businesses like yours in your location.”
Google spokesperson Deanna Yick declined to comment as to how much the ads will cost, since Google will be testing prices for each location and category to find the best balance between cost and return for the advertiser.
According to Google, more than 80% of people look to Google for local information, and this is the best way to make your listing stand out. The ads are targeted only to people who are near your business.
“From what I have seen in screen-shots, these ads are definitely going to be competitive to the ads above them,” Will Scott, president of search marketing firm Search Influence, said in a statement. “I would expect there will be a land rush for companies to get them.”
As an added bonus, so you know when the ad has been effective, Google says you will hear “this call brought to you by Google” with every call made from your ad.
Google is addressing the ad offering toward smaller businesses with a physical storefront. The buying and management processes are simple by design, to create a “low-effort way to reach local customers,” Yick said.
“Anything that offers creating an ad campaign simpler is a good thing for smaller advertisers,” Andrew Shotland, local search optimization consultant, said in a statement. “As more users get involved with local and mobile search, both small and large businesses should be focusing more on local search advertising.”
To take part though, businesses first need to be listed and verified in Google’s Local Business Center. The ads will be free of creative (artwork and images), with results also linking to Google’s version of Yelp, Place Pages.
Officially, pricing has not been set as yet, but it is believed to start around $20 per month and possibly go as high as $200, with the first month being free. Pricing may also vary depending on what market a business is in.
Local Listing Ads are currently available only in San Francisco and San Diego, CA, but are expected to expand to more cities across the U.S. after the initial testing period.