Tuesday, August 15, 2006

Google Maps
To Let Businesses
Localize Coupons



location based services

Google Inc. plans to unveil today a free service that will let businesses offer printable coupons to consumers through Google Maps.

The Mountain View, Calif., Internet company hopes the move will help to increase the popularity of the localized search service and extend its reach among small businesses.

Revenue from the service will follow in coming months, when Google said it will enable advertisers that buy its keyword advertisements to drive search traffic directly to their coupon pages. Since the coupons will be hosted by Google Maps, they will be usable by small businesses with or without Web sites of their own.

Starting today, businesses that want to offer coupons will be able to go to the Local Business Center area of Maps -- the place where businesses can provide up-to-date information about themselves -- and enter information about their special offers and upload an image. The coupons can be printed out and then redeemed at stores, making them useful to small businesses that don't have online stores.

"It's completely free for the merchant and the user," said Gokul Rajaram, director of product management at Google. "Whatever the [sales] conversion rate, it's going to be a big win for the merchant."

Because their use is so easily tracked, the coupons could also help to convince small businesses that advertising online, including on Google Maps, is effective and worthwhile.

"This is a very tangible result from online marketing. And right now, it's free, so that's pretty appealing," said Greg Sterling of Sterling Market Intelligence, a research and consulting firm in Oakland, Calif.

As part of the initiative, Google said it has partnered with Valpak Direct Marketing Systems Inc., a unit of Atlanta-based Cox Enterprises Inc., to provide coupons to Google Maps. Valpak, which sends out millions of blue envelopes full of coupons each year to consumers' homes, will provide 20,000 coupons from Valpak advertisers that will be updated daily.

Google Maps had 23 million visitors in July, double the 11.3 million in July 2005, according to comScore Media Metrix.

Write to Riva Richmond at riva.richmond@dowjones.com

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