How Does Google Maps Make Money?
Google Maps not only gives you directions between places, but also shows nearby shops, pharmacies, service centers, etc. including your business for free. Although cards do not charge for your use, it still earns a significant amount of revenue (it is expected that by 2020 it will grow to $ 5 billion) from advertising and strategic partnerships.
Like the parent company, Google Maps makes the most of its advertising revenue. These ads can be divided into two categories.
Local search ads: Local search ads are featured companies that appear as best results when people search nearby businesses on Google or Google Maps or explore businesses in the surrounding area on Google Maps.
Elevated pins: Google Maps uses a “pin” as a symbol to indicate the location of a place. But in very large cities with thousands of enterprises, it is difficult to find a specific place among so many pins. Here google intervenes, offering to display the company logo instead of the standard pin code. For example, Mcdonald’s pays Google to have its “M” logo embedded in every card. Logos (push pins), colored differently, definitely stand out and are easy to spot.
This not only increases the visibility of the business, but also simplifies the user experience, and, of course, helps to get more revenue. Most importantly, this form of advertising is small-scale and thin and does not scream pop-ups, so it manages clicks exclusively through brand recognition.
2. Google Maps API
Google Maps is not limited to the Google Maps application or Google Maps Go. Companies like Uber, Airbnb, and even Pokemon are paying to include the Google Maps API in their services. But what exactly is an API and how can other companies use the application in their own application?
Simply put, an API is a software intermediary that allows two applications to talk to each other. Google maps sells its API to companies like Uber and Pokemon Go, which adapt it to their needs and use it to make money.
How much does it cost to use the Google Maps API?
The pricing strategies adopted by Google for its Google Maps products are pay-as-you-go and you pay only for what you use. The amount is calculated based on the number of calls for each SKU.
The user also receives a recurring loan of $ 200 in his current account every month to offset the cost of use.
Google Maps has partnered with several taxi companies around the world, such as Uber, Lyft, Ola, and others, and added the ability to detect available taxis and their prices in the Google Maps application. The user gets the opportunity to study various offers from taxi companies in the Google Maps application and is sent to their application if he plans to book one.