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Google Launches New Ad Format to Empower Local Businesses

Posted: April 1, 2006

Google has launched a new ad format type specifically for local businesses. This is a very important change in thinking about local web properties. In the past, prominent ad space has been reserved for the highest bidder, which is often accomplished by national presences, regardless if they are a local business or not. This has been a problem when it comes to migrating local SME onto the web. With the allocation of premium ad space for local businesses (those with a physical address), Google is helping to empower the small business to find success on it’s local property.

I have spoken at several conferences that both search engines, and other local properties, such as IYPs and Newspapers, need to be focused on empowering agencies and small businesses to find premium ad space. In the US, these SMEs represent upto 22 million clients and several billions of ad dollars. They are a force to be embraced, not to be discouraged for the quick national ad dollar.

This move by Google is a very forward thinking one on allocating this space to businesses with local presences. Yes, a national (local) chain, can outbid local businesses in many occasions, however, this gives many service based industries placement they have never enjoyed before.

Below is a screenshot of the new ad format as it appears on Google Local:

The ads have a few properties associated with them:

A Custom Icon List (the icon can be seen on the left in the blue sponsored links - the full list is below).
A Custom logo (125×125 max size 20k) can be attached to the ad.
A Click on the ad opens the sponsored link in the middle of the Google Local page, yet, does not count as an actual ad click (This is PPC advertising).
The Click on the ad in the middle of the map leads to the advertiser website, and this is counted as a click.

Here’s the full icon list:

Display Properties:

What is interesting about these ads, is that you can now create an AdGroup with only a small business ad (more information below on creating these ads), and yet receive distribution across all of Google’s Properties.

On Google.com and Search Partners, your ad will show as a traditional AdWords ad (and like geo targeted ads, it will have the city name below the ad).
On local.google.com, the ad will have the above characteristics.

Quality Control:

To help control the quality of local business ads, and to ensure these businesses do exist, before one can create a business ad, they must be listed in Google Local. This is a good move by Google in ensuring that these are in fact local businesses. However, getting into Google Local can be difficult for many small businesses.

To get your information into Google Local, one has four options:

One can sign up through the Google Business Center. The biggest issues with this route is that a pin number is mailed to you. You must receive the mailer and then input the pin number into Google Local. According to Google Local, it takes around six weeks for information to be included in Google Local. This means there around a two month time lapse between entering your information and appearing on Google Local (Google Business Center Information).
One can send a feed to Google Base. There are two issues with this approach. The feed must be properly formatted, and FTPed correctly. Google Base has been so overwhelmed with response that the FTP is often down. Once your information is in Google Base, it takes approximately two weeks for them to approve local business listings, and then according to their emails, another six weeks to be included in Google Local. Again, a two month wait time.
Once can send a Small Business Feed through Froogle. The same formatting issues above apply, however, the upload time seems quite efficient. Google claims this method can take upto six weeks to include information as well, however, we often see a 2-4 day turnaround in new information being included.
One can use a feed distributor (such as RegisterLocal.com) to send out business information to many local web properties (including Google Local) at a single time. This approach has advantages as it gets you into many web properties, leaves the headaches with feed distribution to someone else, but also lets you easily update your small business data on many local properties at once.

Creating Your Local Business Ad:

Within your AdWords account, navigate to the AdGroup you wish to create a Local Business Ad. You will now see three ad types you can create (Text Ad, Image Ad, Local Business Ad). Click on the Local Business Ad.

The first step is to find your information in Google Local. You’ll be presented with a screen that includes business name, street address, city, state, zip, and country. Fill out this information and have Google search for possible matches.

If you find a match, then proceed to filling out the full information. If you don’t find a match, try searching again. If you can’t find your business listing, you’ll have to submit it to Google Local first (see information above on getting your information into Google Local).

Once you find your ad, you now have a few options:

Create your ad (same character limits as a text ad).
Add your phone number (this is optional). However, the phone number you display does not have to match what Google has on file. This allows one to make sure the most upto date phone number is displayed. It also gives advertisers an opportunity to use a unique phone number to track their ad’s effectiveness.
Choose a map icon (full icon list above).
Choose your destination page.
Upload an image. The use of a graphical logo can significantly increase both CTRs and branding. The logo must be 125×125 (max size of 20k), and be in a .gif, .jpg, or .png format.

Once the information is filled out, save your work.

This is Keyword Based Advertising:

Unlike many local web advertisements that are based on channels or categories, these ads are keyword triggered. You’ll want to review the AdGroup that contains your Local Business Ad to ensure you have a robust universe of keywords that will trigger your ad.

It is also important to note that Google Local will only show one ad type at a time, and they are giving priority to Local Business Ads. What this means is that if there are no Local Business ads, then Google will show appropriate text ads. If there is even a single Local Business Ad, then Local Business Ads will show. If you’re the only one with a Local Business Ad, yours will be the only ad on the page.

Overview:

I’m elated to see Google take this step towards giving premium placement to local advertisers. I also think web searchers will very much enjoy this additional information on Google Local. Most national ads are not relevant to local based searches. This change ensures that local businesses are receiving excellent exposure while searchers are receiving information relevant to their search. A win-win situation for everyone involved.

Hopefully, this will start a new trend in local advertising placement that will carry over to other advertising providers. Google took the first step, now it’s time for the others to follow in assisting 22 million SMEs with billions of dollars to spend, to migrate from offline advertising to successful online marketing.

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Written by Brad Geddes aka eWhisper · Filed Under Blog, Google AdWords, Local Advertising News

Comments

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