AdSense on Maps, API Next?

While I was out yesterday Google launched AdSense for Maps (see bottom of map):

These AdSense ads are apparently being seen in India and the UK as well as the US. I did a number of searches on Google Maps and didn’t see ads every time — many times however.

TechCrunch’s Erick Schonfeld thinks that this is partly a response to the economy and Google’s declining stock price. While the economy may have accelerated the move, I don’t think that Google is doing this directly in response to the recession or its falling market cap.

What I think is more interesting to consider is the following: Will Google do this on all its partners’ sites? In other words, all the sites that have adopted Google Maps as a central part of their interface. Some publishers would welcome the ads, but many others would be upset. Here are the terms of service regarding advertising on Maps:

1.5 Advertising. The Service does not include advertising in the maps images. However, Google reserves the right to include advertising in the maps images provided to You through the Service, but will provide You with ninety (90) days notice prior to the commencement of advertising. Such notice may be provided on relevant Google websites, including but not limited to the Google Maps API Blog and the Google Maps API Group (or such successor URLs that Google may designate from time to time). During that 90 day period, you may terminate your use of the Service, or provide notice of your refusal to accept advertising in accordance with Google’s policies and procedures for providing such notice (which Google may make available from time to time in its sole discretion).

I think Google will be careful not to alienate partners. But if Schonfeld is correct in his assessment of Google’s motivations, and Google is trying to wring money from Maps, we might expect to see expansion of the program to third parties in Q4 or Q1 next year.