Google LSA Cost Breakdown: How To Budget for Google LSA

Google Local Services Ads (LSAs) help businesses target local users searching for a specific service. These ads are different from other Google ads in many ways, including cost.

Understanding the cost of Google LSAs can better help you plan your advertising budget. We will cover all there is to know about Google LSA costs, including:

• Google LSA pricing model
• How much do Google LSA ads cost?
• How much should I spend on Google LSA?
• Tips for creating a Google LSA budget

Let’s break down the cost of Google LSAs below!

Google LSA pricing model

Google LSAs work on a pay-per-lead (PPL) model. That means you only pay whenever a lead converts by completing a predetermined action.

Google offers certain actions that customers can do that count as conversions, like:

• Booking an appointment
• Calling
• Messaging

So, if someone local sees your ad online, clicks on it, and completes one of these actions, then you will pay a fee. If they just click and don’t complete one of the actions above, you don’t get charged.

Generally, PPL is more expensive than a pay-per-click (PPC) model, since you’re paying for a fully actualized lead instead of a simple click.

How much do Google LSA ads cost?

On average, Google LSA ads cost anywhere from $5 to $130 per lead or more.

The cost of your ad will depend on a few factors, like:

• Your industry
• Your location
• Your competitors
• Your bid amount and mode

The actions you opt for as conversions will also impact your prices. For example, messages cost less than phone calls, according to Google. Some actions cost more than others, so the lead cost will vary based on that.

With Google LSAs, you can control how much you spend by setting the number of leads you want per week and manually choosing your bid amount per lead. Once you reach your monthly limit, your ads will stop appearing — unless you raise your budget.

How much should I spend on Google LSA?

How much you spend on Google LSA will depend on your revenue and business goals. Since the cost of LSAs can vary so much, you should evaluate your specific standings and funds before committing to a budget.

On average, Google recommends setting a minimum of 10 leads a week to see the best results. If you already have a Google LSA account, you can break down the figures with Google to determine how much you should be spending overall.

You can select your service area and get an idea of how much you should spend:

You should also consider the competitiveness of your market and industry. If you’re in a competitive industry, you’ll end up spending more just to keep up with competitors. HVAC, for example, is highly competitive, so running LSAs is the main way to stay competitive with other companies running them, since they appear first and at the top of search.

Tips for creating a Google LSA budget

Now that you know how much Google LSAs cost and how the pricing works, you can start thinking about your budget. Here are some more tips for creating your Google LSA budget.

1. Use Google’s cost calculator

Google’s cost calculator can show you how much you should be spending on Google LSAs based on your lead goals, industry, and other related factors:

Using this tool will help you plan out your budget before you set up your ad campaign.

2. Set realistic goals

Before you begin any sort of ad campaign, you should have clear goals in mind.

For example, say your goal is to get more people to sign up for your lawn maintenance services. You should base your budget and ads around that specific goal, rather than taking a more overarching approach to advertising.

3. Monitor your results and adjust accordingly

Once you set a budget, remember that you can change it as needed. For example, if your ads are lucrative, and you find that your low budget is missing more potential leads, you can always add more leads and adjust your budget for the maximum return on investment (ROI).

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If you want a higher ROI for your Google LSA ads, turn to WebFX. Our Google LSA management services can help you reach your local audience while considering the CPL.

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