As anticipated, Google has officially launched a map-based advertising feature that allows businesses to place photos and logos inside balloons that mark on Google Maps where the merchants are located, CNET reports. Barnes & Noble and Ralph Lauren have purchased keywords and have tested the new Local Business Ads system, according to Dominic Preuss, product manager for Google's local advertising.

Certain searches on Google Local bring up icons - coffee mug, car, flower, etc. - representing the type of business; a click on the icon brings up a "balloon" containing more information - a logo, photo or link to the merchant's site. Local Business Ads merchants bid on keywords and pay per click as with AdWords. The ads show up on the maps and Google's main search results page as regular text ads.

Analyst Greg Sterling predicts that the balloons will eventually allow searchers to contact the company directly. "There will be more interactivity," he said. "We may see chat and video and click-to-call."