There’s been a lot of talk in recent years about The Local Web — and the theoretical opportunity to make money out of online advertising servicing the needs of local businesses. Of course, there is the minor problem that there isn’t necessarily enough potential revenue to support the cost of selling and servicing localised online advertising, except in the largest towns and cities …

Enter Google with its newest offering, Local Listing Ads, currently on beta-test in San Francisco and San Diego. It’s a really significant marketing development, especially for small businesses and local retailers.

What’s Unique About “Local Listing Ads”?

1. They’re flat rate, unlike most other Google ad offerings. Greg Sterling of Search Engine Land reports that “The ads are priced on a flat-fee basis (but prices vary by market and category). Google would not disclose the range, but I believe they begin at $20 per month and may go up to $200 or more dollars. But they’re experimenting with pricing. The first month is free”.
   This is a massive departure from Google — a whole new online marketing idea that removes the largest barrier for small business! The “science” required to master Google AdWords has been a game-killer for many entrepreneurs and business owners. In the real world — especially in tough economic times — who has the luxury of spending hours trawling through keywords and trying to make sense of the AdWords processes?
2. Pricing Courtesy You. PPC Blog picks up on an AdAge report that the Local Listing Ads fee is “set by Google and based on the average that similar businesses are paying for a given keyword in that market”. In other words, notes PPC, “Google is using your keywords and your bid prices to automate setting up accounts for competing businesses”.
3. They’re Self-Service. No need to invest in a hyperlocal sales force. The customer does all the work. But, actually, not much effort is required. Can you cope with typing up your name, address and credit card details?
4. No creative required. The Local Listing Ads will not carry any creative, just business name and contact details — and a web address. No need to worry about all that tiresome testing stuff.
5. Heck, no website required either. The URL in the ad can be directed to Google Place Pages. A Place Page is a webpage for every place in the world, organizing all the relevant information about it. By every place, Google really mean *every* place — there are Place Pages for businesses, points of interest, transit stations, neighborhoods, landmarks and cities all over the world.
6. The traffic numbers look really, really good. Over 80% of people already look to Google for local information, according to the search giant’s stats. It’s a compelling story for local businesses (and a substantial competitive advantage over other local online advertising resources).
7. They’re a whole new revenue stream for Google. These are new ad units that will appear both on Google.com in local results and in Google Maps. They’ll be in addition to, not in place of, AdWords. Check out the examples below.

As noted, Local Listing Ads are currently only available in San Diego and San Francisco. But expect them to roll out everywhere, sooner rather than later. If you’re a small business operator, this is a must-have addition to your marketing arsenal!

We cover Local Listing Ads (the implications, the opportunities and the competitive threat) in detail in the upcoming (November) issue of Marketing Rag — check out the story Google: Yellow Peril? [If you're not already receiving Michael Carney's Marketing Rag, subscribe here].