5 Benefits of Google’s Local Services Ads

Alicia is an Internet Marketing Specialist at WebFX. She is certified in Google Analytics and also has experience with Google Ads, Adobe Analytics, conversion rate optimization, and content marketing. In her free time, Alicia loves reading, writing, and playing the ukulele.

Do you run a service-based local business? Do you want to reach more high-quality leads and maximize your advertising budget?

Google’s Local Services ads (LSAs) can help you achieve your goals!

In this post, we’ll look at what Google Local Services ads are, as well as five benefits of LSAs for businesses like yours.

Keep reading to learn more — and subscribe to our emails to keep up with the latest tips for maximizing your paid ad spend!

What are Google’s Local Services ads?

Local Services ads — or LSAs — show up at the top of search results when users search for local services. LSAs are available in select cities for service-based businesses like:

Want to know if your business is eligible for LSAs? Check out the video below, and contact a web strategist today.

LSAs operate on a pay-per-lead model, so you only pay when people contact your business. This means you’re only paying for the most qualified leads.

Still not sure if LSAs are right for your business? Read on to learn about the top five benefits of LSAs.

1. Local Services ads drive more visibility and clicks

Maybe your website is showing up organically in the search results, and maybe your Google My Business listing appears in the Local Pack. Maybe you’re even running pay-per-click ads that show above the organic listings.

But there is one feature that appears even higher than all of these results, a feature that shows at the very top of the page: LSAs.

Having a listing at the top of the search results creates more visibility and leads for your business. Studies indicate that, when LSAs show in the search results, they receive almost 14% of all clicks.

If you’re not running LSAs, you’re missing out on 14% of potential leads!

Since LSAs are one of the newest search result features, many of your competitors are likely not running them yet, giving you the opportunity to be first-to-market with this strategy.

You may only be competing with one or two other LSAs in your city rather than the dozens, or even hundreds, of businesses vying for a spot on the first page of organic or Local Pack results.

Additionally, the sooner you create an LSA, the more established your listing will be if your competitors ever do decide to try to catch up. With time, you’ll acquire reviews and the confidence of Google and users alike, which will improve the ranking of your LSA.

2. With Local Services ads, you only pay for viable leads

Spammy and irrelevant leads are a waste of your valuable time and money. You know the type—lead form submissions trying to sell you something you don’t want, or phone calls requesting service in a location you don’t serve.

And the only thing worse than getting a spammy lead is having to pay for it. With LSAs, you never have to!

Remember, with LSAs, you only pay for a lead once a user sees your ad and decides to reach out to you. This approach eliminates much of the unqualified traffic that you might receive from pay-per-view or pay-per-click advertising.

Of course, invalid leads do still occur from time to time, but with LSAs, you don’t have to pay for them. Google considers a lead invalid if:

  • The requested job isn’t a service that you advertise
  • The requested location isn’t one you serve
  • The contact was unintentional
  • The lead was soliciting or trying to sell you something
  • The lead was seeking employment with your business
  • The lead came from a bot or was pre-recorded
  • The lead provided incorrect contact information or no way to contact them

If your LSA receives a spammy or invalid lead, you can simply click “Dispute” and select the reason the lead is invalid. Within one week, Google will review your dispute and credit you the cost of the lead.

This means that 100% of your LSA advertising budget will directly result in viable leads for your business.

3. You can target exactly where and when your Local Services ad displays

Google LSAs offer specific targeting options that ensure you’re only showing your ad where and when you want to show.

When you set up your profile, you’ll be able to choose the exact cities or ZIP codes where you provide services. Your ad will only show for users located in or searching for service in those locations.

You can update your profile at any time to add or remove cites or ZIP codes. A unique feature of LSAs is that you’re not required to list all the service areas that you serve. For example, if there is a particular area where business has been slow, you could run LSAs only in that area to promote sales there.

Google also allows you to pause your ad whenever you want. You might choose to pause it if your team is overwhelmed with leads and cannot take on more, or if your business is temporarily closed for any reason. You can pause it for however long you’d like — from just a few hours to several weeks or months.

One of the great features of LSAs, and what sets them apart from most digital advertising, is that when your ad is paused, your listing is still eligible to show. It will appear below the paid ads, and you will never be charged for any leads it drives while it’s paused.

4. LSAs provide cost-per-lead transparency

With many marketing channels, it can be difficult or even impossible before you begin your campaign to determine how much money you’ll need to spend to get a positive return on your investment. Fortunately, that’s not a problem with Local Services ads.

Before you begin running your LSA, during the budget setup process, Google will provide you with the cost-per-lead (CPL) you can expect. This CPL is not a generic guess—it is specific to your industry and geographic location.

You can then choose to set your budget based either on a dollar amount or desired number of leads per week. Google allows you to increase or decrease your budget at any time.

This level of transparency about how your budget will be spent allows you to make the most informed decisions possible about your advertising strategy.

5. You can promote confidence with the Google Guarantee

The Google Guarantee badge protects customers who book services through LSAs — and it shows potential customers that they can trust your business. If a customer is dissatisfied with a business’s work, they can contact Google, and Google may refund them for the service, at no cost to the business.

To earn the Guarantee, you must show proof of your business license and insurance. Additionally, each of your field workers and the business owner must undergo a background check, which is completely free to you.

The Google Guarantee is a part of efforts to stop spam and false local business listings. Google wants users to trust that the businesses appearing in search results are legitimate, so it only awards the Google Guarantee to businesses it trusts to provide safe and effective service to customers.

Earning this badge is the perfect way to signal to potential customers that your company provides proven, high-quality work.

Get started with LSAs today!

At WebFX, our team of local marketing experts will help you get started with your local advertising campaign. As a Google Premier Partner, we know what it takes to drive results with paid ads.

Want to know more? Learn about our LSA management services.

If you’re ready to get started, contact us today and see how Local Services ads can help your business grow!