Google offers local ads on Google Maps

Advertisers can insert logos or pictures next to their location on Google Maps

Google is to enable advertisers to add logos and business information to their listings on Google Maps.

The feature will allow advertisers to insert business logos or pictures in a balloon that will pop up next to the company's location on the Google map.

It will also offer further information in several lines of text, such as phone numbers or a business description.

"Since we launched Maps last year, advertisers have asked for more control on Google local," said Dominic Preuss, product manager for local advertising at Google. "There has been really strong demand for this."

Local advertising on the internet is expected to be a major growth driver in the sector, and Google has been testing the service over the past two weeks.

Advertisers will be able to buy the space through Google's AdWords programme in which marketers bid via an auction-style system for popular search terms related to their business.

Preuss confirmed that Google will not charge an additional fee for the map icons, but that the price will be determined by the auction system.

"If people find these ads more valuable they will bid higher," Preuss said. "It will simply be market driven."