On Twitter we see sponsored tweets everywhere, and LinkedIn it's the same. And let's not forget YouTube where we often get hit with two 15-second ads before every video.
But on Google Maps, it's much less obvious, less intrusive, more subtle. Yet it's definitely there.
When you see the astronomical amount some companies are willing to pay for Google Maps advertising, you realize the system is well-oiled.
But how does local advertising on Google Maps work? What are the different types of ads? How do they work and how much do they cost?
Today we are analyzing Google Maps ads. Before looking at it from the business perspective, let's put ourselves in the shoes of users.
Table of Contents
- How Google Maps Advertising Targets Users
- Types of Google Maps Ads
- When Google Maps Ads Go Wrong
- Google Maps Ads Cost: Breaking Down the Math
- Understanding CPC Calculations
- Complete Cost Formula
- Additional Costs and Budget Ranges
- Why Cost Ranges Are So Broad
- Lead Generation with Scrap.io
- FAQ
How Google Maps Advertising Targets Users
When you type a keyword into the search bar, you get a list of businesses. This list is ordered in a certain way which varies from person to person. There are four criteria to consider:
The keyword entered - this one is obvious
Your location and history
Your interests
The time of the day
Now you know what information you are giving to Google, and with this information, the ads can be extremely targeted.
What Types of Ads Exactly?
The most obvious are the sponsored pins, and they're right there on your screen. Don't see them? Regular pins are round, sponsored pins are square. It's even more obvious when you do a search where you will generally see one or two sponsored businesses at the top of the list with a call to action.
But before that, you can do more basic things, starting by filling out your profile by claiming a business on Google Business Profile. A company can list its opening hours, website, phone number, etc. This is the entry level of advertising.
Level one is pushing the information a little bit further: highlighted reviews, displaying a price range, listing hotel features, or even publishing posts. I didn't even know that was possible!
There are other things we could mention: promotional products on Google, Google Maps results integrated with Google Shopping. But I think you get the idea. Google Maps produces fairly discreet ads that don't disturb the user experience - or almost.
For businesses looking to claim their Google Business Profile and optimize their presence, Google's official Business Profile guide provides comprehensive setup instructions.
When Google Maps Ads Go Wrong
For example, one person was surprised to see promotional popups while driving. Imagine you are passing by a McDonald's and suddenly Google Maps throws a pin at you: "Hey, want a Big Mac?"
One cannot deny that this kind of ad doesn't sit well with users. People find it intrusive, even dangerous. It's very similar to ads on Waze, which uses the same concept. And knowing that Google bought the app in 2014, this isn't much of a surprise.
Now Let's Talk Money: How Much Does a Google Maps Ads Campaign Cost?
That's not an easy question. It's like asking how much a YouTuber earns - it depends if you are Mr. Beast or just Mr. Random.
So an agency surveyed 350 Google Maps marketers to draw conclusions, and here are the conclusions. There are several factors involved.
Factor 1: Keywords
Let's start with the most basic one - keywords. If there is one thing I remember from my business degree, it's this graph: you can choose between short-tail keywords which are generic and expensive but in high demand, or long-tail keywords - very niche, low-cost keywords with limited demand.
Factor 2: Market and Industry Type
Then there is another natural evolution of the market and industry type. Some sectors are more competitive than others. As a result, they generally spend more on Google ads.
Understanding the Math Behind Google Maps Ads
But what exactly are these expenses? Grab your calculators, we are doing a bit of math!
The total cost depends primarily on a single factor: you.
Before launching a campaign, you typically set a budget representing the daily amount you're willing to pay over the month. You also consider the bid - the amount you want to spend per click on your ad. This is the average cost per click or CPC.
Calculating the CPC: Quality Score and Ad Rank
To calculate the CPC, you need to understand two other concepts: the quality score and the ad rank.
The quality score is a rating from 1 to 10 that determines the relevance of your ad. Yes, like in school, the goal is to get as close to 10 as possible.
Then there is the ad rank. As its name suggests, it determines the ad's position in search results. And there is a formula for this:
Ad Rank = Max Bid × Quality Score
In other words, the more you are willing to spend and the better you are, the higher your rank.
Once we are aware of this, we can finally calculate the cost per click:
CPC = (Ad rank of the ad below yours ÷ Quality score) + 1 cent
(In case this equals zero, we never know!)
In other words, the better you are and the worse others are, the lower your cost.
The Complete Cost Calculation Formula
You can put your calculators away. So far we have this formula:
Campaign Cost = (CPC × Number of clicks) + (Cost per impression × Number of impressions)
Cost per impression or CPM is typically calculated per thousand impressions, and it needs to be included in our calculation.
All right, that's it, we are done now, right? Right, we're done... um, not quite.
Additional Costs: Agencies and Tools
Sometimes to run a good campaign, you need help from external agencies or use management tools, and that isn't free either.
In total, expect to spend:
- Between $51 and $3,000 per month for an agency
- Between $15 and $800 per month for tools
- For CPC: the range is between $1 and $50
- For CPM: between $1 and $150
With all this, you can finally calculate the pay per click, which is the total cost divided by the number of clicks. We will call it PPC.
The total cost includes agency or tool costs plus Google ads costs, and this is estimated between $100 and $10,000 per month.
The Problem with These Broad Ranges
And maybe that's a problem with our equation - the ranges are too broad. I know it's very frustrating not to have a clear answer, but that's because the initial question wasn't clear either.
Google ads, and therefore Google Maps ads, are accessible to everyone - from freelancers to multinationals. And that's how we get these widely varying price ranges.
Ultimately, we go back to what we said at the beginning: the total cost depends primarily on a single factor - you.
Lead Generation with Scrap.io
Now, if you are interested in getting leads from Google Maps - if, for example, you are an agency and you want to know which companies are using Google ads or which companies didn't claim their listing on Google Maps yet - and you want a solution with a clear price this time, you can go to Scrap.io.
Scrap.io is the ultimate tool for extracting real-time business data from Google Maps. Unlike the broad cost ranges we discussed for Google Maps advertising, Scrap.io offers transparent pricing with clear credits system. You can filter businesses by their digital presence - finding companies that don't have websites, haven't claimed their Google Maps listings, or aren't running local search ads yet.
With 200 million businesses indexed and the ability to extract data at a country scale, Scrap.io helps agencies and marketers identify untapped opportunities for their Google Maps advertising campaigns. The platform allows you to search by business category, location, and digital footprint - perfect for prospecting potential clients who could benefit from Google Maps ads.
By just inserting a keyword and the location, you have access to your list of leads. You can filter your data if you want to, and then all that remains to do is to download your CSV or Excel file.
Frequently Asked Questions
How much does Google Maps advertising cost?
Based on industry surveys of 350 Google Maps marketers, costs vary widely. Expect to spend between $1-$50 per click (CPC), with most businesses paying around $3 per click on average. Total monthly costs typically range from $100 to $10,000 depending on your business size, industry competitiveness, and campaign goals.
What are the different types of Google Maps ads?
The main types include sponsored pins (square icons vs. round regular pins), Google Business Profile enhancements (highlighted reviews, price ranges, posts), and local search ads that appear in Google Search results. There are also promotional popups and integration with Google Shopping for retail businesses.
How is the cost per click (CPC) calculated for Google Maps ads?
The CPC formula is: (Ad rank of the ad below yours ÷ Your quality score) + 1 cent. This means better-performing ads with higher quality scores can actually pay less per click than competitors, even when bidding lower amounts.
What factors influence Google Maps advertising costs?
Several key factors determine your costs: keywords (short-tail vs. long-tail), industry competitiveness, quality score (1-10 rating), ad rank, location targeting, and time of day. More competitive industries like legal or real estate typically have higher costs.
Do I need to hire an agency for Google Maps advertising?
Not necessarily, but it can help. Agency costs range from $51-$3,000 per month, while management tools cost $15-$800 monthly. The total campaign cost formula includes these fees plus your actual Google Ads spend.
How does Google determine which ads to show to users?
Google uses four main criteria: the keyword entered, user location and search history, user interests, and time of day. This targeting makes Google Maps ads extremely precise compared to traditional advertising methods.
What's the difference between regular pins and sponsored pins on Google Maps?
Regular pins are round and appear naturally based on relevance and proximity. Sponsored pins are square-shaped and appear based on your advertising bid and quality score. Sponsored pins often appear at the top of search results with call-to-action buttons.
Are Google Maps ads worth the investment?
For local businesses, Google Maps ads can be highly effective since they target users with high purchase intent. With over 1 billion people using Google Maps monthly, the platform offers massive reach for location-based marketing, though ROI depends heavily on proper campaign setup and management.
Conclusion
This is the end of our deep dive into Google Maps advertising. If you found this guide helpful, remember that understanding the costs and mechanics is just the beginning. I didn't have time to cover every aspect of this complex topic, so please let us know in the comments if you think I've forgotten an important point.
Whether you're a freelancer just starting with a $100 monthly budget or a multinational with $10,000+ to spend, Google Maps advertising offers opportunities at every scale. The key is understanding that the total cost depends primarily on one factor: you - your industry, your strategy, and your execution.