Google patents location-based advertising

The U.S. Patent and Trademark Office has awarded Google a patent granting the digital services giant the right to incorporate location data into its web and mobile advertising efforts, a turn of events that could have a profound impact on its rivals' own location-based marketing efforts. United States Patent 7,668,832 [1]--filed in April 2004--essentially gives Google the right to exploit location to determine whether an ad should be served and, if so, what kind of content is most appropriate. In addition, Google can enable advertiser partners to enter their own location data to improve targeting, and track ad performance according to location-specific metrics and analytics.

"The usefulness, and consequently the performance, of advertisements are improved by allowing businesses to better target their ads to a responsive audience," reads the patent abstract. "Location information is determined (or simply accepted) and used. For example, location information may be used in a relevancy determination of an ad. As another example, location information may be used in an attribute (e.g., position) arbitration. Such location information may be associated with price information, such as a maximum price bid. Such location information may be associated with ad performance information. Ad performance information may be tracked on the basis of location information. The content of an ad creative, and/or of a landing page may be selected and/or modified using location information. Finally, tools, such as user interfaces, may be provided to allow a business to enter and/or modify location information, such as location information used for targeting and location-dependent price information."

While time will tell how Google will wield its patent rights, the scope of the patent effectively gives the company a hold over most location-specific advertising efforts, meaning it could potentially stand in the way of rivals seeking to roll out their own geo-targeted efforts. Google has made no secret of its belief in the promise of location-based advertising: During the firm's Q4 earnings call in late January, Google product SVP Jonathan Rosenberg called local services "hugely important [2]" to the future of the mobile user experience, adding that Google anticipates location-based services more deeply integrating with mobile advertising and commerce services in the "not too distant future."

For more on the Google location patent:
- read this Los Angeles Times article [3]

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