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Google's Next Big Money Maker Could Be the Maps on Your Phone (bloomberg.com)
Google became the world's most profitable internet company on the back of search advertising. Now, it's turning another popular web service into a major cash machine. From a report: Google Maps is an indispensable part of life for more than 1 billion people, who use it to commute, explore new cities or find a hot new restaurant. The service has been mostly free, and free from ads, since it launched 14 years ago.
Interviews with Google executives and customers show this is changing as the internet giant increases the ways advertisers can reach Maps users, while raising prices for some businesses that use the underlying technology. The app now regularly highlights sponsored locations, and shows extra paid listings when people look for nearby gas stations, coffee shops or other businesses. "There's a big opportunity for them to ramp up monetization," said Andy Taylor, associate director of research at digital marketing agency Merkle. "They've been slow-playing it."
"Sometimes I say the most under-monetized asset that I cover is Google Maps," Brian Nowak, an analyst at Morgan Stanley, said while interviewing Google's business chief Philipp Schindler at a recent conference. "It's almost like a utility where it's kind of waiting for you to flip the switch on." Schindler's response showed that Google isn't waiting anymore.
Interviews with Google executives and customers show this is changing as the internet giant increases the ways advertisers can reach Maps users, while raising prices for some businesses that use the underlying technology. The app now regularly highlights sponsored locations, and shows extra paid listings when people look for nearby gas stations, coffee shops or other businesses. "There's a big opportunity for them to ramp up monetization," said Andy Taylor, associate director of research at digital marketing agency Merkle. "They've been slow-playing it."
"Sometimes I say the most under-monetized asset that I cover is Google Maps," Brian Nowak, an analyst at Morgan Stanley, said while interviewing Google's business chief Philipp Schindler at a recent conference. "It's almost like a utility where it's kind of waiting for you to flip the switch on." Schindler's response showed that Google isn't waiting anymore.
Google has effectively killed off all of those applications that used their "free" map API. Just look at Geotracker, ExifTool GUI or presubscription Adobe Lightroom Maps. All of them are essentially dead since the projects are no longer being developed. There is a real cost to developing freely available programs now. FOSS software using Google's new API will now cost the developers money.
Start using Bing Maps - at least Microsoft is not charging for that service - yet.
Traffic data. The shortest route is a problem well solved by now, the fastest-assuming-normal-speeds is as well. But I’ve had GM spare me hours in traffic because it knows what is happening right now and can route around the problem. In one case, 2+ hours, just because of a bridge closure. I didn’t need to cross it, but it backed the highway up so badly. I don’t use it at home for short distances, but I always use it when traveling.