Google Local Services Ads (LSA) is an advertising platform by Google for local service providers that helps them gain additional leads through phone calls, message requests, and instant bookings. These ads are focused on lead generation rather than broad reach or increasing brand recognition.
Plan
- How does LSA look and what affects the ranking of ads
- Advantages of Local Services Ads over Google Ads
- Business sectors and countries where the service is available
- Google Guaranteed, Google Screened, License Verified by Google badges
- How to register in LSA
- How to maximize the benefits of Local Services Ads
- Conclusion
This is a special type of ads in the Local Services section. It displays at the top of Google’s search results page when people search for services in their local area. These ads are only suitable for services with recognized professionals. Potential customers can click on the ad and immediately order services or book a consultation without having to go to a website or anything else. Advertisers pay only for a lead, not a click. Potential customers can click on an ad, but if they don’t leave a lead, the click is not paid for from the funds in the ad account. On the one hand, this kind of advertising is beneficial for advertisers, but to get leads, you need to have good reviews on professional websites.
How does LSA look and what affects the ranking of ads?
Local Services Ads are prominently displayed at the top of Google search results, featuring the company’s name, reviews, rating, phone number, business hours, photos, Google badges, and more.
The appearance of these ads may vary between mobile and desktop devices and can show more or less information. Typically, up to three ads are displayed at a time.
At the bottom of the ad block, users can click a button to view a list of all nearby companies/specialists.
Besides appearing in Google’s search network, Local Services Ads may also show up in responses provided by Google Assistant to voice search queries and on Google partner sites (e.g., topratedlocal.com or lawyer.com).
Local Services Ads do not require keywords or ad creation like Google Ads. Instead, Google uses an auction system where the ranking of ads is determined by factors such as:
- The presence of a Google quality badge
- The set budget and maximum bid per client
- The relevance of the company to the search query
- Proximity to the potential client
- The rating of the profile and the number of reviews received
- Response speed to client inquiries
- Listed business hours
- The presence of complaints about the company
The higher the rating, the higher the company’s position in Local Services Ads and the lower the cost per potential client.
Advantages of Local Services Ads Over Google Ads
Local Services Ads have several key advantages that distinguish them favorably from the Google Ads platform.
#1 Top positioning in search results
Potential clients see Local Services Ads first, followed by Google Ads and organic search results. This increases the visibility of the ads, the likelihood of them being clicked, and the quick ordering of services from users who are further down the sales funnel.
#2 Pay per lead, not per click
Unlike Google Ads, which uses a pay-per-click (PPC) model where advertisers pay for all clicks regardless of whether they lead to a conversion, Local Services Ads use a pay-per-lead (PPL) model. Advertisers only pay for actual calls, messages received, and bookings, significantly saving the budget from unwanted clicks by an uninterested audience.
In LSA, advertisers can specify a particular price per lead they wish to pay or set a weekly budget, and the system will strive to obtain the maximum number of leads within this budget.
To calculate your budget for LSA and find out the approximate lead price for your region and business sector, you can visit this page: Local Services Ads: Lead Generation for Local Customers.
#3 Google Quality Badges: Google Guaranteed, Google Screened, License Verified by Google
In Local Services Ads, companies can obtain “Google Guaranteed,” “Google Screened,” or “License Verified by Google” badges next to their name. These badges add a level of trust and assurance for customers, potentially increasing the attractiveness and credibility of the ads.
Ці значки сильно підвищують довіру до бізнесу від потенційних клієнтів. На відміну від Google Ads, клієнти не витрачають час на дослідження сайту компанії, щоб впевнитися, що вона надійна і з нею не ризиковано зв’язуватися. Детальніше про ці значки поговоримо далі.
#4 Absence of Keywords and Ad Copy
One significant advantage of Local Services Ads (LSA) over Google Ads is that there is no need to spend time and effort on finding relevant keywords and crafting compelling ad copy. Google automates this process by selecting which search queries will display your ads based on the information from your Google My Business profile. The ad format is uniform across all advertisers in the search results, consisting solely of information from the Google My Business profile without the need for writing any ad texts.
Business Sectors and Countries Where the Service is Available
Currently, Local Services Ads are available in 11 countries:
- Austria
- Belgium
- United Kingdom
- Ireland
- Spain
- Italy
- Canada
- Germany
- United States of America
- France
- Switzerland
Only companies from the following 8 business sectors can use the service:
- Home: electricians, plumbers, builders, etc.
- Business: lawyers, realtors, tax specialists, etc.
- Health: dentists, dietitians, dermatologists, etc.
- Learning: tutors, driving instructors, dance teachers, etc.
- Care: child care, veterinarians, pet hotels, etc.
- Fitness and Wellness: yoga studios, fitness trainers, massage therapists, etc.
- Beauty: beauty salons, barber shops, tattoo parlors, etc.
- Automotive: service stations, car washes, detailing centers, etc.
The availability of Local Services Ads and the permitted business sectors can vary by country. For those interested in seeing which specific services are available in their region, Google provides a comprehensive list at their support page: Getting started with Local Services Ads.
If you do not find your business sector or country listed, do not be discouraged. Google periodically reviews and updates these lists, so it is a good idea to check back in a few months to see if there have been any changes.
Google Quality Badges: Google Guaranteed, Google Screened, License Verified by Google
To use local services advertising, all companies must be verified and validated by Google. Depending on the location and industry, this procedure may involve checking the company’s reputation, registration data, insurance documents, licenses, etc.
As a result, a company can receive one of three confirmation badges Google Guaranteed, Google Screened, or License Verified by Google.
Obtaining one of Google’s quality badges—Google Guaranteed, Google Screened, or License Verified by Google—signifies that a business has passed these checks. Each badge offers a different level of verification.
Google Guaranteed badge is displayed in the Local Services Ads for those who provide household services and have passed all checks from Google (such as plumbing, air conditioning, landscaping, etc.).
An additional advantage of the Google Guaranteed badge is that Google may reimburse customers who are dissatisfied with the quality of work, the amount they paid for the service. In this case, Google, not the company, refunds the money.
Google Screened badge can be obtained by businesses that provide professional services (legal, financial, care and beauty sectors, etc.). This mark of approval does not come with the possibility of reimbursement.
License Verified by Google badge is awarded to companies that provide medical services and undergo stricter verification. Google Screened: Typically used for professional services such as law or financial advising, this badge requires background checks and proof of professional licenses.
Actually, to use the Local Services Ads service, it is not mandatory to obtain a quality badge from Google. You can simply undergo a basic verification of your business, but then the ads will appear in search results below those of advertisers with badges, which will reduce visibility and trust in the company.
How to register in LSA
Go to the website https://ads.google.com/localservices/signup/ and click Next.
Select your region, business sector, and check the requirements by clicking the appropriate button.
If the Local Services Ads for your business sector in your region are not yet available, you will see a corresponding notification about this.
Create a new Local Services Ads account.
Fill in all the basic information about your company: its name, address, phone number, owner’s name, etc. Some fields are optional.
Specify the locations in which you operate.
Select the specific services you provide.
Add your work schedule.
Next, you will see a preview of what your ad might look like.
After this, the verification stage of your company will begin. You may need to add information about licenses, insurance, registration documents, and undergo a reputation check of the company, its owner, and employees who will go directly to the client to provide the service, if the business requires it.
The complete list of documents required for verification in your field and country can be found at the link: https://support.google.com/localservices/answer.
If you have a Google My Business account, it will automatically be linked to your LSA profile along with all the reviews. If not, to enable ad display, you need to create a special link and ask former clients to follow it and write a review about you.
Also set a weekly advertising budget and add payment information.
After this, the process of checking and verifying your company will begin, which can take from several days to several weeks. You will be notified of the results via the email provided during registration.
Expert Comment
Google Local Services Ads (also known colloquially as Google Guarantee) work great in addition to the usual Google Search Text and Google Call Ads.
One of the main advantages is the ability for customers to dispute irrelevant leads, which is also a drawback, as it adds another interface for managers to work with.
Simultaneously, for businesses related to Home Improvement services, in addition to Google Local Ads, I recommend testing Thumbtack and Angi to diversify lead generation channels.
How to Maximize Benefits from Local Services Ads
Here are some practical tips to enhance the effectiveness of your Local Services Ads.
Enable Message Requests and Direct Booking
This gives clients more ways to contact you. According to Google, such inquiries typically cost half as much as phone calls.
Respond Promptly to All Inquiries
Make sure to respond to all message requests and try not to miss calls. For convenience, you can respond to inquiries through the Google Local Services Ads mobile app.
Encourage Reviews
Urge your customers to leave reviews. Companies with higher ratings and more reviews stand out among competitors and receive more orders.
Regularly Add New Photos
Keep your profile active and visible to Google by updating with new photos periodically.
Increase Your Initial Budget
At the start, set your weekly budget to two or three times your normal amount. Google is unlikely to use it all, but this can help your ads gain momentum more quickly and enter the auction.
Test Manual Bidding Strategies
Once your ads are running smoothly, test manual bidding strategies by setting a maximum price you are willing to pay per lead.
Dispute Invalid Inquiries
Challenge invalid inquiries, such as those from bots or from people in areas you don’t serve. Submit requests to Google for reimbursement for such leads.
Combine Local Services Ads and Google Ads
Many users find it important to visit your website and learn all about your company before making a conversion. Moreover, having your company appear both in Google Ads paid results and in Local Services listings will increase your visibility and chances of being chosen over competitors.
Conclusion
If you have a local business in the service sector, definitely incorporate Local Services Ads into your comprehensive digital marketing strategy.
Thanks to targeting only local residents, highest placement in search results, and a lead-generating ad format and payment model, you will gain more customers and increase your profits.
