These third-party websites use the Google Maps API, which allows them to embed customizable Google Maps within their site. Google technology will only display your clients’ ads when they’re related to the surrounding content of the webpage. As with all content targeted ads, your clients pay only when someone clicks through to the website.

From a Google newsletter.

It’s not clear if you have Local Business Ads if you will choose to syndicate these ads to Google mashups, or if they will be syndicated if that campaign has the ‘content network’ turned on.

It is clear that Google is pushing LBAs and trying to find more inventory for them (which I applaud), such as showing LBAs on Google Earth.

I hope that you can have the option to syndicate LBAs to maps mashup API sites without showing them on the general content network. That would give the advertisers more control, while receiving primarily local based inventory.