An introduction to Google Local Services Ads

Key Takeaways

Written by
Published on
November 8, 2023

The process of how consumers search for products and services has greatly evolved over time. Currently, 46% of all Google searches are conducted by consumers who are seeking local options to fulfill their requirements. It is the responsibility of brands to ensure that their local establishments, offices, and other locations have a prominent online presence at the exact moment and place where these customers are searching.

Local SEO can improve your visibility in organic search results and MapPack. But if you're struggling to rank highly in competitive areas, using Google Ads can help. Google Local Services Ads are one option to consider. In this post, we'll explain what they are and offer tips for service businesses interested in getting started.

Could you please explain what Local Services Ads are?

Google's Local Services Ads offer a unique payment model where you only pay when a customer contacts you directly through the ad. Unlike other types of Google Ads, where you pay for impressions or clicks, this payment structure allows service-based businesses to only pay for results that generate business. This feature is appealing to many businesses in the service industry.

An additional advantage is that your advertisement appears above the pay-per-click ads of your competitors who are not using Local Service Ads.

In this format, Google Ads requires advertisers to fill out an online form with business information. After that, advertisers must become 'Google Guaranteed' or 'Google Screened' and Google creates ads for the business with the designation of "Google Guaranteed" or "Google Screened".

Customers can access information about your business, including business hours, reviews, location, and other details, and then contact you to take action.

Can you explain how local services ads work?

When a user searches for specific services in a particular area on Google, businesses registered with Google Local Services Ads will appear at the top of the search results page. The Google Local Services Ads section will also display the number of registered local service area businesses in that specific area. From there, the user can choose to view businesses listed on the search results page or click a button to view more businesses directly below, which will provide a comprehensive list of companies in the area.

Google offers a service where customers can search for specific businesses that provide the service they are looking for. The customer can then contact the company through various methods, including calling, messaging, or booking directly through the availability schedule. The listing provides information on the cost of the service and the available time slots.

When a customer chooses your business, Google will send you a notification email that can be viewed on the Local Services Ads app. It is important that you prioritize responding promptly, even if you are currently unavailable, in order not affect your ad ranking.

What is the cost?

Google Ads can be costly, especially for competitive keywords. However, with this format, you only incur charges when customers engage with the ad by saving your location, looking up your phone number, calling you, contacting you later, or visiting your location. In essence, those leads are free.

You can set your maximum budget for Google Local Services Ads. Simply set your monthly budget when you sign up and adjust it later if necessary. You can also choose the number of leads you want to receive each week and make changes as needed.

It is important to note that the payment for each lead may vary depending on the method of receiving the lead. Google calculates the lead price based on factors such as whether it comes through a phone call or message, the type of service, and the location of the business.

What are some strategies for budget management?

Managing the budget for each location is crucial to ensure the desired number of leads per week. In the case of Google Local Services Ads, the weekly budget is adjusted based on the number of weeks in a month, which is part of the maximum monthly budget set by you.

It is important to be aware of the possibility of an increase in leads that may exceed the budget for a particular week. However, Google will make necessary adjustments to ensure that the monthly budget is not exceeded by redistributing leads in subsequent weeks.

One effective method to monitor your monthly budget is by using the Google Local Services Ads app.

What is the issue with spam clicks and calls?

If you think a lead is spam, you can contact Google Ads and dispute it. If Google confirms it's false, you'll get a refund for that lead. Managing your leads is important to stay high in the ranking system and get valuable leads.

Google aims to deliver the most relevant search results and ensure businesses receive genuine leads.

This is a discussion on the benefits of Google Local Services Ads.

We have previously discussed the benefits of creating an ad with minimal effort by providing your business's information, as well as the advantage of your ad remaining at the top of the SERP even if potential customers view other results. Additionally, we briefly mentioned the Google Local Services app, which offers a convenient way to manage your budget and efficiently connect with potential clients.

Another advantage is that these leads typically have a significant level of purchase intent. When a potential consumer comes across your ad on Google, it's because they are already actively searching for the specific services that you offer.

The Google Guarantee Badge designation can enhance trust in your company and serve as a conversion element, as searchers are aware that Google conducts background checks.

The Google Guarantee offers reimbursement to customers who are dissatisfied with the services or products, which may influence potential customers to choose your business over others without this designation.

If you are unable to accept new customers or have a full schedule, you have the option to temporarily pause the campaign until you are ready to start receiving leads again.

When a user hires you through a Local Services Ad, Google encourages them to leave a review for your business. Review volume, sentiment, and recency can positively impact your location's ranking in the MapPack, making it a valuable aspect of your local SEO strategy.

How to Get Started

To begin, it is important to assess your eligibility for Google Local Services Ads based on your industry and location, as not all are currently available. Once you have confirmed your eligibility, you can complete the required information online, including your location, to ensure that your ad reaches all the areas you serve.

If you have a Google Business Profile, you probably have most of the information filled out already. However, it is important to utilize the highlights sections and provide details about your business's unique benefits and services, as Google will prominently display this in the ad.

Afterwards, you can review the preview of the advertisement to ensure it aligns with your vision.

Next, determine the desired number of leads and assess if it aligns with your monthly budget. You can make necessary adjustments accordingly. Once your ad is activated, it is time to commence lead management through the Google Local Services Ads app.

Google provides businesses with a 5-step process to get their ads live.

Which industries are eligible to use Google Local Services Ads?

The pay-per-lead format can be a viable option for:

  • Appliance repair service technicians
  • Lawyers provide services such as traffic or personal injury representation.
  • Lawn care services
  • Real estate agents
  • Pest control services
  • Junk removal services
  • Window cleaning services
  • Flooring services
  • Garage door services
  • And all other categories of services.

When you're open to accepting new customers, it allows you to effectively manage costs and increase your visibility in the world's most widely used search engine.

To determine if these ads are accessible to your industry and location, utilize this tool to check. Select the country in which you operate, and Google will provide a list of eligible industries. While not all service types may currently be available, there are plans for future expansion.

At present, Google Local Services Ads are limited to specific regions, which include broad city groupings.

Google Local Services Ads can be a useful tool for obtaining valuable leads, establishing credibility, promoting reviews, and fostering trust within your community. If your area is currently not covered, it may be worth checking back in the future. If available in your area and aligned with your local marketing objectives, consider exploring this format for your business.

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