AOL’s MapQuest has been in mobile mapping longer than any of its rivals, but it’s playing catch up when it comes to the iPhone, which remains the most important smartphone platform for the time being. This morning, MapQuest launched the iPhone version of its MapQuest4Mobile app (launches iTunes). Prior to this app the company has offered an optimized browser-based version for both the iPhone and Android. MapQuest4Mobile as an app has been available for BlackBerry for some time.

The new iPhone MapQuest4Mobile app offers a rich environment with innovative new features. There’s a great deal of personalization available and the app integrates the online and mobile experiences very nicely. The strategy here involves getting people invested in MapQuest4Mobile through personalization (MyPlaces) and customization (place widgets), as well as PC-mobile integration.

Directions, including multipoint routing, are well executed. Users can easily change the order of several stops on a multipoint trip by dragging one or more of those stops to a different position in the order. The route is recalculated accordingly.

When viewing directions in a list form, users can turn the phone (landscape) and see what MapQuest is calling “max maneuver” mode. Each step in the route occupies the full screen (second image below). This is helpful if the iPhone is on the seat next to you and you’re driving.

Users are also able to access routes and directions initiated on the desktop through the app, providing a high level of integration between the mobile and PC experiences. This isn’t “send to mobile;” it offers a deeper level of integration. Another example of this integration, registered users who have saved locations or directions via “MyPlaces” online can access all that information by signing in on the iPhone app.

Perhaps the most interesting aspect of the new app is the icon-based “one tap” local search capability. This capability isn’t unique to MapQuest (see Google’s Places Directory, AroundMe, ManGo, etc.). However the execution and associated customization is unique. It’s also an example of how companies are leveraging the phone’s location-awareness to make mobile searching somewhat less challenging.

Located on a carousel at the base of the map are graphical icons that pertain to different categories of businesses (i.e., hotels, theaters, restaurants, cafes, gas stations, etc.). Tapping one or more of these icons shows users all those locations near them. One can then get directions to or from any location accordingly.

Christian Dwyer, Senior Vice President and General Manager, MapQuest told me that the existing roster of “place widgets,” as MapQuest calls these icons, would be expanding and will include more branded widgets as well. Users can customize the carousel by dragging icons on or off:

A disappointment for me was the absence of any rich content or reviews at the level of business profiles (you get contact details and links to external websites). However, a very nice feature of the app is the way activated place widgets populate dynamically on the map as you drag it to new areas. That eliminates the need to do subsequent searches for the same types of businesses in adjacent neighborhoods or nearby towns.

Dwyer hinted to me that a future version of the app might allow users to create customized place widgets as well. The addition of more branded icons, the capacity to create customized place widgets and the addition of reviews would make this already strong app even more compelling.

MapQuest has beefed up its business locator tool. A scrolling vertical bar now appears on the upper right of every map allowing users to populate any map quickly and simply with different categories of businesses or, in the case of advertisers, with specific brand locations.

Here’s what happens when you click the logo for Holiday Inn on a New York map:

Note how Holiday Inn also has the display ad on the right side of the page (see below). That’s very deliberate and will be a feature of advertising on the business locator:

Users can also add multiple layers of business types and locations by clicking the various icons in the locator bar. I’ve added coffee houses in this case. MapQuest will be adding more advertisers by category but says it will limit the number of advertisers in a given category to avoid cluttering the locator bar and user experience.

MapQuest is doing a nice job with these features, but most of this was tested or implemented by Yahoo previously (although Yahoo no longer allows this sort of one-click display of category locations on the map). However what MapQuest calls “corridor search” is unique.

That involves locating businesses or types of businesses along a route. Here’s a hypothetical cross-country trip where I’m locating hotels:

In addition to the simplicity and appeal of the locator bar, this “corridor search” is really useful. And one could imagine how brands would love this too to help reinforce loyalty. There are lots of interesting things that could be done with advertising here (e.g., coupons).

This is yet another recent upgrade from MapQuest, which continues to roll out new features or enhancements on what seems like a monthly basis now.

AOL is unveiling When.com this morning. It’s a local events site powered by Zvents. When.com deemphasizes the AOL brand but will become part of the “AOL Local Network,” which includes MapQuest, AOL Cityguide, AOL Travel, etc. There will also be an When.com widget soon.

When.com uses IP targeting to determine default location, but offers personalization when users register.

Zvents content is also integrated into MSN Cityguides. Yahoo has Upcoming, its user-generated events site. Google Calendar allows publishers to add events and allows users to discover/search for them. It’s not clear to me at the moment how widely that’s used, however. Users, publishers and venues can also add listings to When.com.

What’s interesting about Zvents, among other things, is that the site is trying to define “events” broadly to include local retail sales and other non-traditional event occurrences.

There’s more discussion of When.com on my personal blog Screenwerk.

As Google Maps continues to roll out new features that competing map services don’t have, web users are rewarding it with big gains in traffic. A recent analyst report says Google is the number one maps site in terms of features and usability, and new Hitwise.com traffic data just shared this week with Search Engine Land shows Google Maps pulling much closer to category leader MapQuest.

In a report issued this week, the boutique investment bank Cowen and Company says Google is the clear leader with the most user-friendly features among the four major mapping sites. “Google Maps has meaningfully expanded its lead in features and functionality over its competitors,” Cowen analysts say in their report.

As for those three competitors, the Cowen report isn’t very kind: “Since our initial survey in July 2007, innovation at MapQuest (AOL) and Yahoo Maps has stagnated. Microsoft Live Search Maps, which is the least popular of the four, ranks a distant second, but has launched a couple unique features over the past two years.”

The report includes a case study using all four mapping sites to get directions using the phrase, [South Orange community center to Yankee Stadium]. The report praises Google Maps for its “unified search box” because it converted the phrase into “Point A to Point B” directions while allowing the user to choose exact start/end points. The three other services, Cowen analysts say, all failed to provide such a user-friendly experience; Yahoo! Maps and Microsoft Live Search Maps were dinged for requiring the user to provide the exact address of the South Orange Community Center. The report’s analysis of MapQuest says “text and display ads clutter MapQuest pages to the point that it is difficult to find where to click to continue the process of getting directions.”

Google Maps also gets credit in the report for providing easy access to street-level photos, public transit directions, and other features:

Since our last report in July 2007, Google has added a number of unique new features, such as My Location, which pinpoints the location of mobile users to within around 500 meters using cell tower triangulation. In addition, Google has dramatically increased its database of street level imagery and public transportation directions; none of the other online maps sites offer ’street view’ or public transportation directions.

What About Market Share?

Innovation and user-friendly features aside, Google Maps remains second behind MapQuest in terms of market share — but is gaining ground quickly, according to new traffic data from Hitwise analyst Heather Hopkins.

The image above shows U.S. market share in the Travel-Maps category. Over the last nine months, Google Maps has seen a traffic increase of about 45%. Hitwise stats show Google currently having just over 32% market share among mapping sites. MapQuest, meanwhile, has fallen from above 50% to 44.4% market share at the moment — that’s down about 15% so far in 2008.

Longer trending of these same numbers can be seen by looking at Hitwise stats published earlier this year. At the start of 2007, Google Maps market share was only about 10%, a distant third behind MapQuest and Yahoo! Maps.

Stepping outside the Maps category to overall U.S. web traffic shows similar numbers:

The image above not only casts a wider net, but also shows combined numbers for Yahoo! Local and Yahoo! Maps, as well as combined numbers for MSN Live Local and Ask City (which uses Microsoft Virtual Earth mapping). Heather Hopkins shares more about these charts on the Hitwise blog today.

We’ve noted on Search Engine Land that two factors likely began to change the traffic trends for map sites: First, when Google stopped linking to MapQuest and Yahoo! Maps; second, when Google Maps began to be featured prominently in Universal Search results.

Cowen and Company expects this trend to continue, and to pave the way for success in mobile search: “Google’s aggressive investment in maps positions the company to achieve a dominant share of search in the mobile Internet.”

MapQuest has recently stepped up development efforts, rolling out a new and improved “beta” site just a couple of weeks ago. MapQuest product VP Mark Law told me at the time that was the first of many changes and improvements to come. Accordingly, yesterday, the company debuted MapQuest Local a new “start page” (think MyYahoo or MyAOL) for local content. It features drag and drop widgets that can be customized.

AOL also sees MapQuest Local as a kind of open platform that will increasingly allow third parties to distribute their locally relevant content to MapQuest’s 48 million monthly users. While there are some conceptually similar things in the works from others, this is a very fresh and compelling approach to local.

There’s no search box yet but that’s coming. I’ve got more discussion on my personal blog Screenwerk.

Separately in association with the mobile CTIA conference, AOL announced the release of Truveo video search for WAP browsers. There’s already an iPhone version of Truveo.

From the release:

Starting today, consumers can access the Truveo Mobile Video Search beta site from RTSP-supported (Real Time Streaming Protocol) mobile phones by going to http://wap.aol.com/truveo. The new mobile video search site taps into Truveo’s industry-leading index and makes it possible for consumers to search and browse through millions of videos on more than 300 websites whose content has been optimized for mobile devices.

Citysearch has announced a deal with AOL that provides Citysearch reviews and content (e.g., video) and place local Citysearch advertisers on AOL local properties. The two firms will share revenue from clicks or leads generated from AOL distribution.

Here’s what the release says: Under the agreement, Citysearch … will provide its local content, including editorial reviews, user reviews, merchant videos, photos and offers for distribution across AOL properties, such as AOLCityGuide, AOL Local Search and MapQuest. AOL will integrate local advertising and content from Citysearch’s broad base of local advertisers into AOL’s leading local properties…

AOL has its own editorial and ratings content in AOL CityGuides but fewer local advertisers and no local video. For Citysearch this is a win because it will add additional traffic to its “distribution network” (including for video). Citysearch sells calls, clicks, and video, as well as distribution of those things to third-party sites and search engines as part of the overall advertiser proposition.

On a smaller scale, Citysearch did a similar deal with MerchantCircle not long ago.

AOL’s Platform A will also sell geotargeted advertising to national brands through Citysearch placements as part of the deal. Many of AOL’s Platform A properties, including Quigo and Advertising.com, offer geotargeted advertising options as well. However, the Citysearch traffic is more qualified in most respects.

Postscript: I was told by Citysearch that this last paragraph is inaccurate and isn’t part of the deal at this point.

Gary Price reported that AOL Local Search second beta for AOL Local Search. The new features documented in this second release include:

• Better fallback for locations that cannot be mapped
• Improvements to the Driving Directions widget, both in visibility and in ease of use
• Improvements in the design of the Printer Friendly pages
• More “Top Tier” city content. Results for the larger cities in the US will display modules such as “City’s Best” and “Explore (City Name).” Outside of major cities, results will feature
• Regional Events and Regional Headlines
• A tip box for the first time you visit a search results page to highlight the functionality of the map that is being displayed (e.g., panning, clicking and dragging, etc.).

Try the new beta at http://local.aol.com/aol/localhome.

AOL, which was one of the early players in local and has recently fallen behind, has now launched a new look and feel local search. The centerpiece is MapQuest maps plus content and ratings from AOL Cityguide (formerly Digital Cities). Here’s an example search for “Sushi, New York City.” It’s a nice looking, functional site that allows users to sort results by distance, name or rating. These features are now “table stakes” in local, although Google Maps still does not permit “sort by rating.”