Google Maps is a web and app-based mapping platform that offers aerial photography, satellite imagery, terrain data, street maps, route planning, and real-time traffic information.
But with so many users, it may surprise some to learn that Google has until recently done little to monetize the service directly.
“Google Maps is a utility-like service (similar to Search) and in our view, remains the most under-monetized asset that we cover.”
With the above figures in mind, let’s explain below how Google Maps makes money.
Google Maps revenue generation
In Q4 2021, the company reported that $61.2 billion (or 82%) of total revenue came from advertising alone.
Below is a look at each revenue source in more detail.
Google makes money from advertising in three ways.
Search listing ads
Advertising here works the same as it does for a Google search; paid listings are shown at the top and businesses are only charged when a user clicks one of their ads.
Branded location pins
In some situations, Google Maps will show branded location pins irrespective of whether the user is searching for that company.
Branded pins are available to any business provided their ad spend and ad quality is of a sufficient level.
Businesses must also have a square logo (favicon) uploaded to their My Business accounts and have configured their location extensions for each ad campaign.
Less common is the use of retail landmarks when receiving directions from the automated voice within the app.
Some users have reported receiving messages such as “Turn right after the Burger King” or “Turn left at the Starbucks.”
Google Maps API
Google also makes money by selling the Google Maps API to other businesses and app developers that require mapping or navigation services.
These include Uber, Lyft, Snapchat, Accenture, and Square.
API services come in three forms:
- Routes – for example, Uber incorporates Google Maps into its app so that drivers do not need to switch between two apps to determine a route.
- Places – this encompasses geocoding, where street addresses are converted into geographic coordinates that can be used as place markers. This form also includes current place, time zone, place photos, and autocomplete for geographic search terms.
- Maps – these are maps that consumers see embedded in real-estate websites or food-delivery apps, for example. Customers may also choose from static or dynamic maps and static or dynamic Street View.
Each of these API services comes with various fees, but Google offers $200 credit (equivalent to 28,500 map loads) for free every month.
- Google Maps is a web and app-based mapping platform that offers aerial photography, satellite imagery, terrain data, street maps, route planning, and real-time traffic information.
- Most Google Maps revenue comes from advertisers who use Google Adwords to promote their businesses. Some of the ad formats include search listing ads, branded location pins, and retail locations as navigational landmarks.
- Google Maps also makes money by selling its API to interested parties. API services are categorized as either Routes, Places, or Maps and will suit the majority of business applications.