Google Recharges Place Results

Google, Inc. hopes to attract advertisements from more business located near people using its search engine by adapting their search results to focus more on local businesses. This change will come in the form of Google’s Place Search, which should be in place this Thursday, giving users of the search engine local business information related to their search directly on the first page, alone with a photo, user ratings, and review snippets with links from sites such as CitySearch.com or Yelp.com.

Many small business owners have expressed excitement over the new Place Search as it will legitimize their businesses and draw more consumer attention. However, others are concerned about how reviews on Yelp and similar sites that will be so prominently displayed and any negative comments may hurt business. Either way, Google is simply responding to competition for local business advertising dollars from Facebook Inc. and other sites that have made information about local businesses readily available to users. Therefore, on Monday, Google announced their new Boost ads, which would appear above the Place Search results but look similar to those results. These ads would cost between $100 and several hundred dollars a month.

Google has already created Place pages for over four million businesses, and it is estimated that 20% of Google searches focus on local places. This market research indicates why Google is choosing to make these platform changes targeting local businesses. They have found a niche in their already successful business that could profit from a fresh marketing approach, thus they are revamping their Place search and adding in Boost Ads to local businesses, which will find both these options extremely appealing. If Google’s marketing mix is successful, then they will be able to compete with Facebook and create a strong foothold in the market of local business advertising.