This evening Google has announced a plan to provide 30 days of Google Tags free (hat tip to Taylor Cimala of Digital Third Coast Internet Marketing & Jeffrey Magner of Trumpet Local Media ). The following is being sent to businesses with listings in Google Places (It is of interest that even Google still feels the need to note that it was formerly referred to as the Local Business Center):
|© Google Inc. 1600 Amphitheatre Parkway, Mountain View, CA, 94043.
Email preferences: We sent you this email because you have indicated that you are willing to receive promotions about related Google products. If you do not wish to receive such emails in the future, please visit the settings tab of your Google Places homepage (http://www.google.com/places – Places login required), uncheck the box next to ‘Special Offers’, and click ‘Save Changes.’
Terms and Conditions. Promotional credit is only valid when signing up for new Google Tags listings. Promotional credit allows for $25.00 of free Google Tags advertising (equal to 30 days free for one listing). This credit can be spent on one tag listing, or it can be applied across multiple tags listings and $25.00 will be deducted from your monthly billing statement. Advertisers will be charged for advertising that exceeds the promotional credit, which is $25.00, per listing, per month. If you don’t want to be charged for the additional months, you can pause your tags at any time and your charges will be pro-rated for that month. Google Tags are subject to ad approval, valid registration and acceptance of the Google Places and Google Tags Program terms and conditions. The promotional credit is non-transferable and may not be sold or bartered. Offer may be revoked at any time for any reason by Google Inc. One promotional credit per customer.
Clearly the income opportunities for Google with this product are significant both short and long term. They have recently noted that 2 million businesses have claimed their listing in Maps. If only 10% of those users sign up for Tags, Google will generate $60 million per year.
It strikes me that Tags will create a virtuous cycle of sign ups for Google. As businesses see them being used by competitors and appear on other searches that they do, they will be inclined to sign up for them or at least inquire about them and sign up for a Google Places account.
There is large upside income potential looking out 12-24 months. If Google manages to get to 5 million claimed listings and 30% of those businesses sign up for Tags they would be looking at $450 million annually.
It is no wonder that they are playing with new 7-pack layout.