Understanding Google Local Services Ads

Online lead generation can leave you stuck in a maze, even if you’ve significantly narrowed down the geographic area you want to target. While strategies such as PPC ads, Google Maps extensions, and hyperlocal marketing are effective, they require proactive efforts. For businesses that struggle to work with these strategies, Google’s Local Services Ads comes as a savior, which is mostly set-and-forget.   

Google’s LSA makes it easy to steal the spotlight, sending you straight to the top SERPs and conferring you with a recognizable stamp of approval that puts you ahead of your competitors. Bringing you leads on a silver platter, LSAs enable you to quickly break through the noise and achieve your marketing goals. You get the exact number of leads you aim for, right on time, without ever stretching your budget.

However, LSAs are not a one-size-fits-all solution for every local business’s marketing needs. This ad model works best for select categories of businesses.  

In the following sections, you’ll get to learn if your business qualifies for LSAs, the requirements for launching out, how to budget, plus tips to optimize your results. 

Let’s begin!
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What are Google Local Services Ads?

Google Local Service Ads is Google’s lead generation program that guarantees leads for local businesses. Just like PPC ads and GMB profile listings, Local Service Ads show up at the top of search results when people search for local businesses near them. However, it differs from those two in many aspects. 

For starters, Google has rolled it out in just a handful of locations and verticals. Also, businesses must pass through a rigorous vetting process to qualify. Once approved, the business’s ads go straight to the top of search results for relevant keywords, where they sit decorated with Google’s badge of approval.

These ads are specifically designed for service-oriented businesses: plumbers, electricians, painters, lawyers, social work experts, etc. When potential customers see a top listing with a badge, they know the business is not just another face in the crowd—it’s the real deal.

LSAs operate on a pay-per-lead model. You only pay when a user contacts you directly through the ad.  Users can call you directly or send messages. 

And just as it guarantees conversions, Google also guarantees customers that their needs will be met. If a customer isn't satisfied with your service, Google might swoop in like a superhero, offering a refund of up to $2000. It's customer satisfaction on steroids. 

The entire operational model seems well thought out. So far, the program has been working quite well, guiding customers straight to the doors of businesses in the areas it covers.
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Difference between Local Services Ads & PPC Ads

To provide more context, let’s examine some of the ways local services ads differ from PPC ads. If you’re wondering which one is a better fit for your local marketing campaigns, here’s what you need to know about their pros and cons:

Paying for Leads, Not Clicks:  

Unlike PPC, LSA goes beyond just registering clicks, connecting you directly with tangible leads. You pay only when a potential customer calls or messages you directly. You can rest assured that your investment will instantly generate customer interest and engagement.

The Trust Badge  

The Google Guarantee badge is the crown jewel of LSAs. Google vets your business, checks your licenses, and assures customers that their satisfaction is guaranteed. This sets you apart in the competitive landscape.

On the other hand, PPC ads don't have this badge. Customers don't get that extra layer of assurance, and running with the ad content alone can leave lots of room for doubt. Of course, Google also vets all PPC ads, but it won’t go out of its way to endorse your business. 
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Placement at the Pinnacle:  

Both LSAs and PPCs show up at the top of search result pages. However, PPC ads aren’t always guaranteed the top position.

The battle for attention can be fierce, and your competitors might significantly outbid your ad, relegating it to a lower position and obscuring its visibility. But because Google guarantees leads with LSAs, you can rest assured of a top position for your ad.
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Streamlined Customer Connection:  

LSAs go beyond the click, guaranteeing high-level customer engagement. Users can call you directly or send messages, streamlining the process of turning interest into engagement. 

PPC Ads can direct users to your website, but the process of customer connection is less direct. Users have to navigate through your site, and the likelihood of a direct interaction is lower.
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Budget Efficiency:  

With LSAs, you know the exact impact your investment will have on your bottom line. You know it will lead directly to a certain number of sales. It's a budget-friendly approach that ensures your money goes towards tangible customer connections.

Whereas with PPC Ads, you can’t tell what number of clicks will translate to a potential lead, and this could lead to less efficient spending. PPCs are way much cheaper, though. And if your ads are powerful enough, you might be lucky enough to come away with leads at a fraction of the cost compared to LSA ads.  
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Does Your Business Qualify for Local Services Ads?

Are you considering LSAs for your local business? Well, hold your horses. Before you dive in headfirst, let's look at the qualifications to see if your business is LSA-ready.

LSAs aren't for everyone. The program is still in test pilot mode. Google is still trying to figure out how best to run the model. For now, it is targeting only select businesses in specific countries. For starters, you must be located in this whitelist of countries, which includes Austria, Belgium, France, Germany, Italy, the UK, and the US. 

Also, your business must be in the services sector: appliance repairs, electricals, plumbing, moving services, etc. Blue-collar and white-collar services like financial advisors, lawyers, housing social workers, etc. are also eligible. We’ve listed out these service areas comprehensively in the later sections of this guide. 

Keep in mind that you may still not qualify even if you offer the supported services in the specified areas. Some services are not supported in certain locations. Other exclusions include businesses without a physical location or storefront, businesses that offer marketing services or businesses with poor reviews. 

Also, Google wants to ensure that users are in safe hands. To qualify, your business must have the necessary licenses and insurance. Google conducts background checks to verify the business and the individuals providing services.

Your business needs to have a clean slate—no recent legal issues or significant customer complaints. 

LSAs also prioritize the protection of customer information. Google ensures that your business complies with privacy and security standards, creating a safe and trustworthy space for potential customers.

If you check off all these requirements, you can approach Google with full confidence knowing you’ll likely secure a deal that brings leads effortlessly to your doorstep.

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Calculating Cost for Local Services Ads — Cost Calculator

So, you're ready to dive into the world of local marketing domination and unleash the power of Google Local Services Ads. With all the other requirements checked off, the only thing in your way now is your budget. 

Leads cost about $25 on average with LSAs. Factors like your location and type of service can affect the cost significantly. Google also factors in your business's reputation, responsiveness, and relevance when determining lead cost. 

You can get a rough estimate of your cost with Google’s LSA calculator. When you specify your budget and the period you want the ads to run, Google then gives you an estimated number of leads to expect. 

Once your campaign starts running, your ads will display for the specified period. It’ll keep running until the specified period ends, after which it will be taken down. By then, you would have hit the targeted number of leads.

Google allows you to play around with numbers. You can set a weekly budget or maximum or minimum spend per period, or tweak your cost in various ways to find your financial comfort zone. This gives you the control you need to optimize your spending. 

Note also that LSAs use a bidding system, which is one of the reasons why the cost varies significantly between different industries and locations. High competition in a certain industry or location will inevitably lead to a higher cost per lead.

When a potential lead matches your business and location, Google calculates the bid based on what others are spending. The higher your bid, the better the chances of your LSA making that prime spot at the top of search results and generating results quickly enough.
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What is Google Guarantee?

You earn a Google Guarantee—a green badge of trust that sits right next to your business name in your ads—when you scale Google’s background and quality checks. When a business is Google Guaranteed, it means that Google has verified crucial aspects of the business, instilling confidence in potential customers.

The verification process ensures that the business and its employees have a clean track record, all the necessary licenses and insurance coverage, and other legal and regulatory requisites. 

Google Guarantee also guarantees customer satisfaction. If a customer is dissatisfied with the quality of the service provided by a vetted business, Google may reimburse the customer up to a certain amount. This guarantee serves as a testament to Google's commitment to customer satisfaction and adds an extra level of assurance for customers considering the services of a Google Guaranteed business.

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What is Google Screened?

Google Screened is the verification badge for businesses in highly sensitive industries where there’s a lot more at stake. While Google Guaranteed works for everyone—plumbers, electricians, etc.— Google Screened focuses on heavily regulated professions such as health care experts, financial planners, and legal practitioners. 

The verification process for Google Screened is a lot more rigorous. It looks into the business's legal and professional history and licenses/certifications, ensuring a high level of professionalism and reliability.

Once a business successfully passes the advanced screening process, they are awarded the Google Screened badge, which is prominently displayed on its Local Services Ads.

How to Setup Google Local Services Ads?

Setting up Google Local Services Ads (LSAs) is quite straightforward. However, a few tweaks in the process can improve the efficiency and cost-effectiveness of the ads. 

You need to ensure that your business is accurately represented, and your advertising campaign is configured to reach the right audience. 

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Follow these steps to set up your Google Local Services Ads properly:

1.   Verify Your Eligibility:  

First, you need to make sure that your industry and location are supported by the program. Check out Google’s official qualifications page to get up-to-the-minute info on services that qualify. 

2.   Create a Google My Business Account:  

If you don’t already have one, set up or claim your Google My Business (GMB) account. LSAs are closely integrated with GMB, and having an optimized GMB profile is essential for a successful LSA campaign.

3. Set up your Local Services Ads account:  

Next, go to the Google Local Services Ads platform and sign in using your Google account. Once inside, you’ll find prompts to guide you in setting up your account. You’ll need to enter your business information accurately: your business name, location, contact details, and the services you offer. This information will be displayed on your ads. You also need to select the services you offer and the geographic areas you serve. This step is crucial for reaching the right audience.

4. Set Your Budget:  

By now, you should have already used Google’s calculator to plan your budget. Set your budget accordingly on your LSA account, determining your weekly budget, maximum and minimum spend, and other cost specifications. 

Complete Your Background Check:

Next, you need to undergo Google’s background check and verify your business details, licenses, and insurance. This step is essential for the Google Guarantee badge.

Set Up Billing:  

You’re almost there now. What’s left is to enter your billing information to facilitate the pay-per-lead model. You will only be charged when a user contacts you directly through the ad.

Review and Confirm:  

You’re all set. But before proceeding, review all your information and confirm your ad settings. Double-check your service areas, business details, and budget to ensure accuracy.

Wait for Approval:  

Now, the ball is in Google’s court. Google will review your information and background check results. Once approved, your ads will go live, and your business will be eligible to appear in the Local Services Ads section on Google.

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How to Manage Google Local Services Ads?

While LSA is largely a set-and-forget advertising model, you need to make ongoing efforts to optimize your campaign, track performance, and manage your customer interactions. 

Here's a step-by-step guide on how to effectively manage your Google Local Services Ads:

Monitor Your Leads Dashboard:  

Your LSA dashboard comes with tons of tracking tools. You can review incoming leads, the number of calls and messages generated through your ads, the location and sources of your leads, cost per lead, conversion rates, etc. These reports provide insights that enable you to identify trends and patterns and understand what is working well and where adjustments may be needed.

Regularly Update Your Google My Business (GMB) Profile:  

Make sure your GMB profile is current at all times, with your accurate business information— services offered, operating hours, contact details, etc. You’ll never know who’s looking at your ads at any moment, so you’d want to ensure that any viewer gets up-to-the-minute info about your business.

Optimize Service Categories:  

Besides updating your GMB profile, you also need to regularly review and update your service categories to make sure they align with your current business focus and offerings. If your business expands or shifts its focus, update your service areas accordingly to ensure that your LSAs target the right audience. 

With this, you can rest assured that your ads will always appear to users searching for the specific services you provide in your specified locations.

Respond Promptly to Customer Inquiries:  

Monitor your leads dashboard regularly and respond quickly to customer inquiries. Timely responses are crucial not only for your conversion rates but for your Google rank as well. Google values responsiveness and that can positively impact your ad's performance. 

Optimize Ad Content (Including Images):  

Periodically review and update your ad content. Ensure that your headlines, descriptions, and call to action are compelling and accurately reflect your services. 

Visual appeal matters. Images can grab attention and provide potential customers with a glimpse of your professionalism. Add high-quality images that showcase your work, team, or business premises. 

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How to Optimize and Improve the Performance of Local Services Ads?

Optimizing and improving the performance of your Google Local Services Ads (LSAs) is crucial for maximizing the return on your investment and attracting more qualified leads. 

Here are some proven tips to guide you:

Encourage and Respond to Reviews:  

Positive reviews build trust and enhance your business's credibility, creating a positive impact on your performance in local search results. 

Encourage satisfied customers to leave reviews on your GMB profile. Additionally, respond promptly and professionally to both positive and negative reviews to show your commitment to customer satisfaction.

Experiment with your Ad Copy:  

Test and tweak different ad copies regularly. Experiment with different headlines, descriptions, and calls-to-action to identify what resonates best with your target audience. Highlight unique selling points and value propositions using multiple angles.

Optimize your Budgets and Bids:  

Assess your budget and bidding strategy regularly. Adjust your weekly budget based on your business goals and the competitiveness of your industry and location. Experiment with bidding to find the optimal balance between visibility and cost.

Refine Your Target Service Areas:  

Adjusting your service areas helps you focus on high-potential areas. Evaluate the performance of your LSAs in different service areas, and refine your target areas based on the geographical locations where you receive the most valuable leads. 

Optimize for Mobile Users:  

Most of your prospects will likely search for you via mobile devices. Ensure that your LSAs are optimized for mobile users. Deploy a mobile-friendly website, clear call-to-action buttons, and concise ad copy.

Utilize Ad Extensions:  

Another crucial tip is taking advantage of ad extensions to provide additional information about your business. That could include location extensions, callout extensions, or structured snippet extensions that make your LSAs more informative.

Stay Informed About Updates and Changes:  

Lastly, keep yourself informed about updates and changes in Google's policies and features related to LSAs. Adapt your strategy to leverage new features and stay compliant with Google's guidelines.

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Categories Eligible for Google Local Services Ads.

To wrap up our guide, let’s look closer into the list of eligible services for LSA. This list isn’t set in stone, and Google is regularly adding or removing services across different locations. 

As of the time of this writing, the program supports over 70 different types of services. Google groups these services in multiple categories: home services, professional services, education, wellness, and health care.

Here’s a brief list of businesses in some of these categories:

Home services:

• Plumbing
• HVAC
• Electrical
• Appliance repair
• Garage door services
• Locksmiths
• Pest control
• Moving services
• House cleaning
• Lawn care

Professional services:

• Financial planners
• Tax specialists
• Legal practitioners
• Real estate agents
• Education:
• Beauty school
• Dance instructors
• Driving instructors
• First aid training
• Language instructors

Wellness:

• Acupuncture
• Personal trainers
• Yoga studios
• Weight loss center

Remember, these supported services vary across different locations. Always check Google's official guidelines for the most up-to-date information.

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Conclusion

Google’s Local Services Ads gives you the power to redefine your local business narrative. It's your ticket to a future where your business shines, your phone rings with eager customers, and success becomes your everyday norm.

Picture a world where Google is your ally, customers trust you without hesitation, and every click turns into a satisfied customer.

By consistently optimizing and refining your Google Local Services Ads, you can enhance their performance, attract more qualified leads, and ultimately expand your local business. Regular monitoring and adjustments are key to staying competitive in the dynamic landscape of local advertising.

So, buckle up, implement these game-changing strategies, and let your business soar to heights you never imagined. 

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Now, it’s time to unlock increased visibility, credibility, and a thriving local business!