#32 How does Google Maps make money?
#32 How does Google Maps make money?
If the service is free, you are the product
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Google Maps needs no introduction so let’s dive right into how Google Maps makes money. If you’ve always wondered how Google affords to keep the service free for consumers, you’d be surprised to know that Google Maps is poised to be an $11B business in 4 years.
There are 2 main ways that Google Maps makes money
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Duh?!
Ads at the top of local search listings: Similar to the Google Search results where Ads show up on the top of your results, Google Maps shows local nearby businesses that are running Ads. These Ads are very contextual to the place you are searching for.
Company branded location Pins: Google Maps shows logos of nearby businesses even if you are not searching for them.
Retail locations as landmarks for navigation: Ever heard Google Maps tell you to “turn right after the Starbucks”? This is another advertisement channel that makes the driver aware of a starbucks coming up on their route. (My thoughts: Pretty smart, whoever came up with this.)
Google Maps API (Google Maps Platform)
Ever wondered how apps like Uber, Lyft, Ola, Swiggy etc. embed maps within their platform? Any company that has a map/navigation component relies on a Maps provider for accurate directions and live-traffic updates. Google Maps happens to be one of the most trusted maps data provider.
Google Maps Platform offers 3 high-level API services:
Maps: eg. Maps that we see embedded in food-delivery apps or real-estate listing apps are powered by Google Maps
Routes: eg. Uber embedded maps in their driver-apps to fetch the routes so that the driver does not need to switch between apps.
Places: Location intelligence. eg. while searching for nearby restaurants in food-review sites or choosing an address in an online form.
Here’s a link to the pricing page for Google Maps Platform if you’re keen to find out how they charge for different APIs.
Given the volume of API calls made by different apps that run Google Maps within their products, the total cost definitely adds up.
Next time you book a cab or order groceries, you will be contributing to Google Maps’ revenue :)
Fun Fact
Do you know which are the most expensive keywords on Google?
Business Services
Bail Bonds
Casino
Lawyer
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