With Real-Time Traffic Data Google Maps Gives You More Reliable Travel Times

by Trefis Team
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Google (NASDAQ:GOOG) has updated the Directions feature in Google Maps to estimate the time for the trip between two locations based on real-time traffic data. Searching for directions to any destination will now show multiple routes with estimated trip times for each, based on the current traffic. The traffic data is generated from Android users who opt to use the My Location feature on Android, and possibly from satellite feeds which indicate traffic patterns. [1]

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Increased Google Maps usage could boost ad revenue

Google Maps is one of Google’s most popular offerings, with over 70% market share in the the United States according to Comscore.

Google generates revenue from Google Maps by allowing local businesses to place location targeted ads on the service. It also generates some revenue directly by charging online services which leverage Google Maps and build products powered by it. It also charges a small fee to websites using Google Maps with more than 25,000 map views a day.

By offering Google Maps to regular users for free, Google has gained significant market share, and could use it to promote its other services. It could also monetize the service further using better, locally targeted, mobile advertising units.

We currently have a $670 Trefis price estimate for Google, which stands nearly 4% above its market price.

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Notes:
  1. Google Maps Directions Gets Real-Time Traffic, PC Mag []
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