In select markets, Google has launched a new local advertising platform. This is an enhancement of the current local business listing service and is intended to compete with Yahoo’s current offering.

These new text based ads will appear in Google search results next to standard business listings, and will be displayed based on the location of your business, the categories your business is defined for and the location of the searcher.

Unlike the current AdWords model, all ads are based on a flat monthly rate. This rate will vary however based on your business type and location. Official pricing for this product has not yet been announced by Google.

The analytics provided with this service are quite nice. You will get full reports on:

• Ad Impressions
• Click-Thru Numbers
• Calls (Based on an 800 number automatically provided by Google that redirects the call to your business number)
• Search terms used when you ad was displayed

Along with these statistics you have two options on where to send people from you ad. You can send them to your current website, if your company has one, or you can create a special business listing within Google Maps.

It will be very interesting to see the initial feedback on this new product. If all goes well, I’m certain this Google Local Advertising will roll out nationally relatively quickly.