• by Shankar Gupta , June 14, 2005

Rumors are swirling that Google intends to take another step in the online mapping arms race by creating a three-dimensional map of San Francisco and other major metropolitan areas. The reports appeared to be fueled by the "Stanford Block Project," a Google-funded initiative at Stanford University, which aims to create three-dimensional models of blocks near the Stanford campus.

Google has declined to confirm or deny the rumors, which first surfaced last week on the blog SiliconValleyWatcher. A Google spokeswoman said the company supports many university projects, but that no announcements had been made regarding a three-dimensional mapping project. Stanford University's Web site also mentions another Google-funded project--a study by associate professor Marc Levoy, dubbed "Multi-Perspective Panoramas of City Blocks."

Some industry watchers think a move by Google to advance mapping capabilities makes sense, given the intense competition in online mapping in the last few months. "In a very short period of time within the last quarter, mapping has become this really hot area--and really increasingly competitive, because consumers have really responded and liked the experience of using maps," said Greg Sterling, an analyst with the Kelsey Group. "This could really create a next-next generation product."

The clear online mapping competitor is A9, which provides storefront photographs by driving digital camera-equipped trucks through major U.S. cities. MSN's upcoming Virtual Earth product, which offers overhead photos similar to Google Map's satellite view, also could emerge as a competitor.

"As these products get better and better and more refined, and add more features, the other competitors that don't add these features are going to find themselves with less consumer usage," Sterling said. "And ultimately, it's about creating more page views, more opportunities to show ads."

Charlene Li, an analyst with Forrester Research, agreed that Google's reported efforts in this area show how competitive the mapping space has become. "It's really the glitz factor of it--it's a cool, neat way to one-up the competition, she said. "Virtual Earth showed that Microsoft can do satellite mapping, too. A9 is out there with their trucks, so Google is going to be sending their trucks out, too."

And convincing consumers to choose one mapping product over another is very much affected by the bells and whistles that companies add, like satellite mapping or storefront photos. "People kind of dismissed satellite mapping as a novelty, but the visual appeal and the "wow" factor does matter, and people respond to it," Sterling said.