Google is integrating the Waze app into the advertising program of Google Maps

Google is integrating the Waze app into the advertising program of Google Maps

In an attempt to trim expenses, Google is streamlining its operations by integrating the Waze app into the advertising program of Google Maps. This strategic move has sparked speculation about the fate of the widely used navigation application and whether it will eventually be phased out. 

Google's Cost-Saving Measures

Similar to many technology companies, Google is confronted with financial challenges and exploring avenues to save money, despite its significant investments in AI development. Earlier this year, the company downsized its workforce by laying off 12,000 employees, amounting to 6% of its total employees. Now, Google has turned its attention to the Waze teams, with the goal of downsizing its workforce and aligning the app with the advertising program of Google Maps.

Integration of Waze into Google Map

Last December, Google consolidated the Waze development team with its own Google Maps team and other navigation services. This integration marked a notable change from the time of Waze's acquisition in 2013 when the two services operated independently. Back then, Google reassured users of its unwavering commitment to Waze, its unique features, and its passionate community of volunteers and users. However, recent developments indicate a different direction.

Changes in Advertising Strategy

In an email circulated within Google and reported by CNBC, Chris Phillips, the head of Google's mapping division, unveiled a new advertising strategy for the mapping service. Rather than maintaining a separate advertising system, Google intends to incorporate Google Ads directly into the Waze app. This decision will lead to job reductions in sales, marketing, operations, and analysis departments, although the exact number of affected employees remains undisclosed. Google aims to create a more scalable and optimized Waze Ads product while scaling down the existing Waze Ads offering. Additional details will be disclosed on July 11.

Progressive Assimilation of Waze

Despite these changes, Google aims to assure the active and dedicated Waze community. A company spokesperson affirmed to CNBC that Google remains deeply committed to nurturing the distinct Waze brand, its beloved app, and its thriving community of volunteers and users. While there is a possibility that Google Maps might gradually absorb the Israeli-born Waze app, such a transition would likely encounter resistance from its 151 million users, particularly in Europe. Furthermore, Waze's engaged community furnishes Google with valuable data, including speed limits, user-reported accidents, and road hazards.

Google's Emphasis on Core Business

Google's financial challenges have already resulted in the discontinuation of its cloud gaming service, Stadia, and the promising web-based AI, Duplex on the Web, which facilitated online purchases without the need for form-filling. As the company strives to refocus on its primary areas of operation, namely search, and advertising, it is probable that other projects may be put on hold. However, for the time being, Waze is expected to continue operating.

While Google is implementing cost-cutting measures through the integration of the Waze app into the advertising program of Google Maps, the company has reassured users of its unwavering commitment to Waze and its vibrant community. The future of Waze remains uncertain, but for now, the popular navigation app will continue to serve its purpose.