Google Lures Small Business with $100 Million Worth of Free Advertising

Google is doubling down on efforts to conquer the small business market. Not that this is something new, Google has been trying to crack the potentially very lucrative advertising market for years, but it's now starting to look like it may have a chance. Beyond a greater number of products aimed at small businesses and the 'local' web, it is starting make the necessary changes to its internal culture.

Google is now running a campaign to convince small businesses to use its AdWords advertising product. Google is offering up to $100 worth of advertising on AdWords for one million small businesses, matching whatever they chose to spend.

But it's not the sum that it's the most interesting, it's the fact that it's offering free phone support to help out businesses set up an account and campaign, a significant shift for a company that has always relied on algorithms and self-service tools rather than people.

"Small businesses don’t have to stay small in 2011. Discover a proven, cost-effective way to generate new customers for your business: Ads on Google," Google writes on the campaign page.

"People are searching for what you offer, and by advertising with Google AdWords, you can reach them at the moment they're most interested. To start your new year strong, Google will match the first $100 of your investment in AdWords if you sign up before December 31, 2010," it adds.

Google recently appointed one of its star employees, Marissa Meyer, as head of its local services unit. And it has been introducing all sorts of new products or enhancements to cater to the local web.

There's no guarantee that Google will come to dominate the small business market or even be successful in it. There's plenty of competition in the space and it still seems like it's only just beginning.

Companies like Groupon are making a killing by going after small local businesses. And if a two-year-old company can generate a reported $2 billion in revenue in this market, it really is too early to make any predictions.