Custom search ads catapult Google's revenue

Targeted local search has become more popular as an increasingly large number of people purchase smartphones with GPS capabilities.

Google, which already launched its hyperlocal search advertisements that featured click-to-call functions in mobile ads, recently introduced an additional element that can allow businesses to advertise when a person is searching from within a mobile app, PCWorld reports.

Custom Search Ads can benefit companies if, for example, a user is looking for a restaurant in Yelp in a certain area. If one business is closer than a competitor to the person searching on his or her smartphone, that business will rank above them in mobile search.

The launch of this new feature is merely icing on the cake for Google, which posted a 28 percent increase in year-over-year paid clicks and a 5 percent rise in year-over-year cost-per-click during the third quarter of 2011, according to Forbes.

As eWeek adds, mobile search's burgeoning popularity and Google's accommodating response have played a large role in the company's success, which, according to CEO Larry page, is expected to earn the company $2.5 billion in 2011.