Google tests ads in Australian maps

Google has begun putting ads on its popular maps pages in Australia, a sign that the search engine giant wants to convert more of the high traffic to its websites into advertising dollars.

Logos for Bankwest, JB Hifi, LJ Hooker, NAB and Chemist Warehouse have started to appear on maps when users zoom in close.

Australia is the first country to trial display ads in maps which, if successful, will be rolled out across the world, the company said.

But, unlike Google's usual advertising model where advertisers must bid for certain keywords for their ads to appear in paid for search listings, Google is reverting to a more traditional ad model of charging companies every time a web user sees their logo on the page.

And this being Google it is not as simple as a company paying for its logo to be on the maps. Advertisers must be ''relevant'' to be listed and for Google to allow their logos to appear on its maps pages.

Google determines relevance by looking at what people are searching for, what they are linking to and entries in Wikipedia, among other things, all of which is fed into its algorithm - Google's secret recipe.

Google currently carries thousands of listings of businesses, places of interest and public services on its maps. Up until now none have carried a company logo.

The amount of information that appears on each logo when clicked, such as the address, telephone number and a description of the business, remains the same as generic listings; all that will distinguish a paid for placement will be the appearance of a logo.

Yet the ad will only remain on the maps if enough users ''interact'' with it, that is hover over it or click through for the additional information.

Matthew Leske product manager of Google Maps said that the more relevant the business is to someone who is searching the area on maps the more likely a logo will prove to be of use.

''We always have to think about the user experience first. The goal [of the service] is to let them [users] know that there is a business of interest there for them to use.''

Mr Leske said petrol stations are expected to be particularly relevant. ''The owner of the petrol station is more concerned about letting people know that they are there than for their brand to appear. It is primarily about convenience.. this isn't about taking them to a website but helping them navigate around the area.''

Advertising rates are determined on the number of times a logo is seen - known in the online advertising community as page impressions - and by how many unique users see that ads.

Mr Leske would not disclose the advertising rates but did say that banks advertising their ATM network would expect to pay less than say a department store. ''It's about the value of that customer to that business,'' he said.

- © Fairfax NZ News