Google has launched location-aware display advertisements for internet enabled mobile phones including the Android and iPhone handsets. Is it what we’ve all been waiting for?

google-newYes. It is what we’ve been waiting for, frankly. For years, I have visited companies and sat at press launches listening to announcements time and time again that tout ‘the year of mobile’ and go one about location based advertising.

Now it’s here and available to the masses. And best of all, Google will only charge advertisers when users tap to call the business or visit the advertiser’s mobile site.

Through Google’s “location extension” feature, advertisers can now include their location and phone numbers to appear in display ads on iPhone and Android mobile websites.

Announced on its Mobile Ads blog, Google said the feature – previously available only on search ads – will appear as banner text advertising and will pinpoint business locations on a small map as well as a “click-to-call” phone number. Consumers will also have the option for generate directions if needed.

Giving consumers the option of viewing businesses in their area increases Google’s chance that the consumer will call the business or click to its website, which are the two ways Google makes money on the service.

The move shows Google’s increased investment in mobile and display advertising – two areas that have traditionally played second-fiddle to regular search advertising.

The only catch is, rival Apple forbids application developers from collecting location data only for advertising purposes, which could set back some advertisers. Google faces massive competition from Apple’s iAds platform which has already generated $60 million. But the location extenstion feature at least launches Google onto the playing field finally.

To use the service, advertisers have to opt-in to the Google Ad Network and make sure they check the “Display Network” option. From there, the advertiser includes its number and address as well as the option to upload a logo. The last step is to check the box for iPhones and other mobile devices will full internet browsers.

Here’s some pointers to get you started from Google:

1. Ensure your campaigns are opted into the Google Display Network. As a best practice, we recommend setting up separate location extensions campaigns for Search and Display networks.

2. Set up location extensions and add your business phone number and address.  Be sure to also upload your business logo or icon, or choose from the set of icons available. Your ad will display a default icon if none is chosen.

3. Check that you’ve chosen to show your ads on iPhones and other mobile devices with full Internet browsers.

That’s it! You don’t need any special programming skills to create the map, Google will automatically generate it for you based on your business location.