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Google further boosts mobile, local search strategy with Frommer?s deal

Google wants to beef up its local search offerings by acquiring the Frommer?s travel guide brand as the search giant continues to look for ways to drive revenue from mobile.

Google said this week that it is acquiring publisher John Wiley & Sons? travel assets, which includes the Frommer?s brand. With consumers increasingly using their mobile devices to search for nearby restaurants and hotels, the deal is another sign of how important local search is to Google as it continues to build a mobile strategy.

?Google's integration of local content such as Zagat and now Frommer's will allow searchers to find the nearest point of interest with full description and professional reviews - just one of them, as opposed to reading through hundreds of amateur reviews,? said Marc Poirier, co-founder and chief marketing officer of Acquisio, Brossard, Canada.

?Mobile is about getting information quickly, and having professionally written content means that you have only one solid piece of trusted opinion to read before making a decision, and that is perfectly suited for mobile phones.?

On location
Terms of the deal were not disclosed but reports suggest Google will pay $23 million for the Frommer?s brand and Wiley?s other travel assets.

Reaching mobile users with information relevant to their searches and location is of growing importance for companies because consumers are increasingly using mobile to conduct searches.

Google has said previously that 40 percent of searches have local intent and that 50 percent of Google map use coming from mobile phones.

Additionally, the number of mobile local searches is expected to outnumber desktop local searches by 2015, which mobile local searches will total 85.9 billion and desktop 84 billion, according to a recent report from BIA/Kelsey.

?The Frommer's team and the quality and scope of their content will be a great addition to the Zagat team,? said Katelin Todhunter-Gerberg, a spokeswoman for Google, Mountain View, CA. ?We can?t wait to start working with them on our goal to provide a review for every relevant place in the world.?

Driving ad revenue
Mobile local search also provides a potentially lucrative way to monetize mobile for companies such as Google.

Google has recently seen the average cost-per-click paid by marketers drop in part because paid search budgets are increasingly shifting from desktop to less-expensive mobile search ads.

Yelp is also facing difficulty in monetizing mobile. The company recently reported that 40 percent of searches are now conducted on its mobile apps, becoming the majority on weekends.

?The next significant source of ad revenue for Google will likely be in the mobile space, specifically enabling merchants to advertise to mobile users who come within a perimeter around their business,? Acquisio?s Mr. Poirier said. ?The ads can be pushed out as alerts, showing a map with directions to the business as well as the ad itself.

?As clients enter the store immediate area, AdWords conversion tracking can be informed in real-time - the  user came to the store - but also if the user pays with Google Wallet, the loop can be closed and the advertiser now knows that the ad is generating revenue in the stores,? he said.

The mobile opportunity
The deal for Frommer?s is just the latest indication that Google wants to beef up its local search offerings, including mobile local search.

Last year, Google acquired restaurant review publisher Zagat for $151 million to add restaurant reviews to local search results.

In the spring, Google replaced Google Places with Google + Local, a local review service featuring information about local businesses that appear in search, maps, Google + and mobile. The enhanced listings for local businesses such as restaurants and retail stores will also include reviews from Zagat.

?Google's future is all about capitalizing on the mobile opportunity and it looks like they're doing it quite well,? Mr. Poirier said. ?With their AdWords program, their ownership of Android OS and Motorola phones, and Google Wallet, they can create a huge source of revenue with location-based advertising.?

Final Take
Chantal Tode is associate editor on Mobile Marketer, New York