Comprehensive Guide To Google Local Service Ads

Google’s Local Service Ads (LSAs) are a valuable addition to local digital marketing solutions for a growing number of service industries. When a user searches for a local business (for example “Keyport Plumbing Services”), they are presented with ads for a selection of reputable professionals in their area, screened and verified by Google. These are prominently placed above the standard paid search ads and display vital information such as the business’s contact number, operating hours, ratings, and customer reviews. Additionally, these ads are versatile and can be viewed on various devices including desktops, tablets, and mobile phones.

Local Service Ads let you easily control your budget and connect with customers. They also help build trust with customers using the Google Guaranteed verification system. Google takes steps to connect users with the right business to ensure the highest quality leads possible, and lets business owners dispute incorrect charges. These ads are a cost-effective way for local service businesses to get qualified leads.

Google’s Local Service Ads (LSAs) have revolutionized local advertising by employing a refined matchmaking process which pairs users with businesses based on service needs and location, and in cases where there isn’t a match, efficiently directs them to a more suitable LSA, saving businesses from unnecessary expenses. These ads are prominently displayed above organic results and traditional search ads, ensuring high visibility, and are particularly cost-effective with lower costs per conversion, which is advantageous especially in hyper-competitive industries like legal services. Moreover, as LSAs are still relatively new, many competitors have yet to embrace them, providing an opportunity for businesses to gain a competitive edge. Through intelligent matchmaking, high visibility, and cost-effectiveness, Google’s LSAs offer a streamlined and focused approach for local businesses to effectively reach their target audience.

Some of the other benefits of Local Service Ads include:

• Showcasing Positive Reviews and Ratings. Each Local Service ad incorporates ratings and reviews from past customers, lending credibility to your business. With Google discontinuing Review Extensions on search ads, Local Service Ads provide a unique opportunity to display your positive reviews directly on the SERP.
• Extending the Impact of Your Paid Search Ads. Google’s Local Service Ads are prominently displayed above both paid search ads and organic listings. However, they’re not designed to replace traditional search ads or organic local listings, but rather to complement them. Even if a user doesn’t convert via Local Service Ads, the strategic placement on the SERP and user reviews can positively influence their decision-making process later.
• Presence in Voice Search Responses. In the era of voice search, Local Service Ads help you stay visible. Given that over 20% of all searches come from voice-activated queries, Local Service Ads can place you in the results provided by Google Assistant, available on over 400 million devices.
• No Need to Manage Ads or Keywords. Paid search advertisers are familiar with the ongoing demands of keyword research and ad testing. However, Google’s Local Service Ads eliminate these tasks. Local Service Ads are automatically triggered by relevant search terms, ranging from broad terms like “Auto Mechanic” to specific ones like “leak coming from car engine” Furthermore, the ad format is auto-generated using information from your business profile, saving you time and effort.

Originally only supported for a very small number of industries, Local Service Ads are now available for over 70 industries in the following categories:

• Home Services
• Education
• People Care
• Pet Care
• Wellness
• Healthcare
• Professional Services:
  • Finance
  • Law
  • Real Estate

This list is continually being expanded to include new business categories. Keep in mind that different industries are eligible for different types of ads and features. For example:

• Google Screened certifications are only available for certain industries including lawyers, financial planners, real estate, and child care/preschool businesses.
• Google Guaranteed badges are only available to service industries, for example plumbers and HVAC companies.
• The ‘License verified by Google’ badge is only eligible for the healthcare industry.
• The ‘Booking’ feature can only be included in ads for real estate, legal, and home service businesses.

For the most up to date information on industries eligible for Local Service Ads, use Google’s eligibility checker to see if your field is included.

When Google first launched Local Service Ads across select markets in 2015, it was only available to a small number of industries in certain large US metropolitan areas. In the years since launch, Google has been continually adding cities to this list as part of a nationwide rollout. Local Service Ads are also now available in other countries including the UK, Canada, and more.

Local Service Ads are now widely, but not yet completely, available in the United States. Availability can also depend on your industry – some industries are available nationwide while some are not yet. Google does not have a complete list of currently approved locations that is available to the public. Instead, they encourage users to enter their industry and location so that you can check your eligibility.

It is important to note that eligibility and verification requirements will vary based on your industry and location, so the best way to proceed if you are interested in Local Service Ads is to go through Google’s eligibility check process.

There are four primary differences between Google Ads and Local Service Ads:

1. Payment model – Pay-per-click vs Pay-per-lead: Google Ads work on a pay-per-click (PPC) model. This means you pay every time someone clicks on your advertisement, regardless of whether they become a customer. On the other hand, LSAs work on a Pay-per-lead model. You only pay when a potential customer contacts you directly through the ad. This might be a phone call, a message, or a booking. Furthermore, you have the option to dispute charges on leads that are irrelevant or invalid. This major difference makes LSAs potentially more cost-effective, as you’re essentially paying for direct interactions rather than simple clicks.
2. Placement in search results and ranking: LSAs appear above traditional Google Ads in search results, which gives them a prominent placement and potentially higher visibility. While Google Ads’ placement is determined by a complex auction system involving bidding on keywords and quality score of the ads, LSAs are ranked according to the business’s reputation. This reputation is gauged by the size of the customer base and the average review rating. So, in essence, with LSAs, businesses are rewarded for good service and positive customer feedback with higher placement.
3. Cost-effectiveness: Generally speaking, LSAs tend to be a less expensive option than traditional Google Ads. This is primarily because of their flat-fee model, where you pay a predetermined amount for each valid lead, versus the competitive bidding environment of Google Ads which can drive up costs. It’s important to note, however, that the actual cost can vary depending on your industry and location.
4. Business Verification: LSAs are only available for businesses that have gone through a thorough verification process by Google. This process, known as Google Guaranteed or Google Screened (for professional services), involves background checks, license and insurance verifications, and assessment of reputation. This helps build trust with potential customers, as the Google Guarantee provides a kind of insurance on the job. On the other hand, Google Ads are open to all businesses, regardless of their verification status.

One of the standout features of Google’s Local Service Ads is that advertisers are charged per lead, rather than per click, which addresses the frustration experienced by those familiar with Pay-Per-Click (PPC) advertising where clicks may not always result in conversions. Google’s Local Service Ads facilitate a more precise match between the job and the advertiser, curtailing job mismatches that occur when users search using broad terms for a highly specific job or for a location beyond your service area.

Crucially, Local Service Ads empower advertisers with the ability to review calls and contacts, providing them with an option to dispute leads that are irrelevant, fraudulent, or spam. This dispute mechanism ensures advertisers are billed only for legitimate leads, and can potentially receive credit for invalid leads. The cost per lead generally ranges from $6 to $30, varying based on job type and market conditions. By integrating this feature, Google’s Local Service Ads ensure a more focused and cost-effective approach to reaching the right customers while offering advertisers greater control and accountability over the leads they are billed for.

Google Guarantee and Google Screened are two robust certifications designed to enhance the credibility of local businesses and professionals.

With Google Screened, businesses that pass a background check and a Google-conducted interview are awarded the Google Screened badge, which they can display on their website and Google My Business listing, signaling to potential clients that they meet Google’s quality and customer service standards. This verification covers certain professional service providers, each with their own screening criteria, including:

• Lawyers. Google will verify all active law licenses.
• Financial planners. Must pass background checks for the entire business, the business owner, and each individual planner.
• Real estate agents. Google will perform a license check.
• Child care and preschools. Google will perform a license check.

Google Guarantee is similar to Google Screened but with an added layer of financial protection for customers. To earn the Google Guaranteed badge, businesses undergo a similar background check and interview process, but must also have their location verified and agree to specific guidelines. This certification is especially compelling for service-based businesses such as plumbers and HVAC technicians. If a customer is dissatisfied with the service, they can file a claim with Google and potentially receive compensation up to $2000. Reimbursement is at Google’s discretion and may cover problems with the quality of work provided. They will not reimburse for cancellations, communication issues, future project add-ons, or property damage.

In essence, while both certifications elevate trust and credibility, Google Guarantee goes a step further by offering financial protection, making it an attractive option for businesses seeking to provide an extra sense of security to their clientele. Google Screened, with its focus on professional services, ensures that customers connect with thoroughly vetted experts. Both programs serve as powerful tools for businesses looking to distinguish themselves in a competitive market.

Businesses in the health care industry are eligible for a ‘License verified by Google’ badge on their profile. This badge shows prospective clients that your health care services license has undergone a thorough verification process by Google. Eligible businesses include doctors, dentists, allergists, chiropractors, and other healthcare providers.

Requirements for this badge will vary depending on your practice area and the criteria set by your state’s medical board. Google’s standard verification will also need to be completed as well. Potential patients want to go to a provider they can trust, so this badge is absolutely worth getting if your practice is eligible.

In order to show live Local Service Ads with Google Screened or Google Guaranteed badges, businesses need to complete the full verification process. However, there are some instances where Google will allow ‘pre-badge’ ads to be served once preliminary checks have been completed. Requirements for pre-badge ads include:

• License or business registration.
• Proof of appropriate business license.
• Reviews (depending on industry)
• Submitted payment and completed budget settings.
• Headshots (finance, law, and real estate businesses only)

Healthcare businesses are not currently eligible for pre-badge ads.

Here is a breakdown of the process for starting a Google Local Service Ads campaign.

Verify Your Eligibility

Google’s Local Service Ads are exclusive to specific industries within designated markets. Begin by verifying if your business category and location are eligible for Local Service Ads here. If Local Service Ads aren’t available in your region or industry, don’t fret – Google is constantly expanding its coverage. Sign up to receive notifications for when Local Service Ads become accessible for your business.

Set Up Your Google Business Profile

It’s important to note that the Google Local Service Ads profile is distinct from the Google My Business account. The latter is linked to your local listing on Google, which you should also optimize. Your Local Service Ads profile dictates which jobs get matched to your ads. Provide accurate information regarding the services you offer and the areas you wish to generate leads in, as this will be the basis for lead matching.

Within your profile, you can manage:

• Weekly budget
• Business hours
• Service areas
• Types of jobs

Additionally, you can enhance your profile with highlights, which may be displayed alongside your Local Service Ads on SERP and your business details page. Utilize these to emphasize unique traits, such as “Locally owned & operated,” or special offers like “Military discount available.” While optional, Google suggests incorporating 2-5 highlights for maximum impact.

Provide License and Insurance Information

To qualify for the Google Guarantee and run Local Service Ads, you need to submit evidence of your status as a licensed and insured professional. Ensure your documentation is current, and submit your general liability insurance information along with your relevant professional licenses. If your locality mandates additional licenses, add those as well to ensure compliance.

Undergo a Background Check

Google prioritizes user safety and trust. To uphold these values, it mandates that businesses and their fieldworkers pass a background check before being featured in Local Service Ads under the Google Guarantee. Google has collaborated with Pinkerton for this purpose. There is no fee for the background checks, and you can manage the process here.

By meticulously completing these steps, you’ll be well on your way to leveraging Google’s Local Service Ads to connect with a more targeted customer base and grow your business.

Learn more: Guide to the Google Ads Advertiser Verification Process

Local Service Ads may look different depending on whether your business is Google Screened or Google Guaranteed. Google is also known to change the formatting of ads from time to time in an attempt to improve user experience and generate more leads. Generally speaking, your ad will include at least the following information:

• Business name. Make sure this is consistent and accurate – changing it will require verification with official documents.
• Hours of Operation. You can set the hours your business is open on each day of the week, in addition to when you want your ads to show.
• Location. Google may either show your business address, or the cities you service depending on your business.
• Phone Number. This will be a tracking number that redirects to your business line.
• Reviews. Google may include the number of reviews, average star rating, or certain individual reviews. This is why getting as many positive Google reviews and mitigating negative reviews is critical.
• Badge. Either Google Screened, Google Guaranteed, or Licence verified by Google depending on your eligibility.
• Photos. Google has specific guidelines on what is acceptable for Local Service Ads photos.
• Bio. You can highlight important features of your business, such as whether you are a locally owned business, or if you are open 24/7. Google may also highlight some features automatically.

Upon finalizing your business profile, you can set your Local Service Ads in motion and start accumulating new leads. The dashboard allows you to navigate to the “Leads” tab through the drop-down menu in the upper right corner. Additionally, for on-the-go management, the Local Services Ads app is available on Android and iOS. It’s crucial to recognize that leads do not equate to confirmed appointments, so prompt follow-up is imperative. Within the dashboard, you can scrutinize the details of each lead, such as the nature of the job, its location, and even listen to the call recording.

When engaging with an interested lead, you have three options: communicate with the customer via email or text message, initiate a phone call using the contact number provided, or decline the job request with the option to explain why. Declined requests can be retrieved if circumstances change. After evaluating, you can mark leads as booked for efficient tracking of upcoming assignments. Utilize this feature to schedule tasks, send confirmation emails, and collect customer feedback. Keeping records and reporting on these booked engagements is instrumental in assessing the overall Return on Investment (ROI) and profitability of your Local Service Ads.

Within your business profile, you have the capability to modify the budget allocated for your Local Service Ads. This can be done by adjusting your average weekly spending based on how much you are willing to invest in your Local Services Ads. Similar to Google Ads, Google may slightly overspend or underspend your weekly budget, but rest assured that it will not surpass the monthly maximum you set.

Since Google Local Service Ads charge per lead instead of per click, altering your budget will directly influence the number of leads you acquire. For those newly adopting Local Service Ads, it’s advisable to allocate funds for a minimum of 20 leads per week to maximize the efficacy of your advertisements. It’s important to note that the budget for Local Service Ads is distinct from your AdWords budget. If you are employing both, make sure to account for the cumulative expenses of your campaigns to optimize financial planning. To further enhance the effectiveness of your allocated budget, consider incorporating strategies to bolster the Return on Investment (ROI) of your Local Service Ads.

In the constrained space of the Search Engine Results Page (SERP), a maximum of three Local Service Ads are displayed on desktop, two on mobile, and just one through Google Assistant. To secure a spot, your ad must have a high rank. Unlike traditional search ads, which rely on quality scores derived from click-through rates, ad relevance, and landing page experience, Local Service Ads’ ranking is determined by different criteria. Google assesses factors such as your business’s proximity to the customer, your review score and the quantity of reviews, your responsiveness to customer inquiries, business hours, and any serious or recurring complaints against your business.

Securing reviews is crucial as they significantly impact your ad rank. In fact, some businesses require a minimum of five reviews before your ads will show. Google streamlines this process by allowing you to effortlessly request reviews from clients who schedule appointments through your Local Service Ads. Through the “Reviews” tab in your Local Service Ads manager, you can examine completed jobs and directly solicit clients to leave a Google review. Personalizing your messages to clients can enhance the chances of them leaving a review.

Here are some helpful tips for encouraging customers to leave a review:

• Don’t Be Afraid To Ask: This might seem obvious, but it’s often overlooked. Don’t hesitate to ask your satisfied customers to leave a review. Customers who have had a positive experience are generally happy to share their opinions. It can be as simple as sending an email after a service has been provided.
• Make It Easy: Simplify the process of leaving reviews – even customers who agree to leave a review will give up if they hit a roadblock. Provide direct links to your review page in follow-up emails, invoices, or on your website.
• Excellent Customer Service: The best way to garner positive reviews is by providing excellent services. Ensure your customers have a great experience from the first point of contact through to the completion of the service.
• Respond to Existing Reviews: Engage with customers who’ve left reviews, whether they’re positive or negative. Thanking reviewers for positive reviews shows you appreciate their feedback. Responding professionally to negative reviews can impress potential customers and sometimes encourage the original reviewer to update their review.
• Offer Incentives: While you should never buy reviews or offer incentives in exchange for a five-star review, you can encourage customers to leave a review by entering them into a competition or offering a small thank you, such as a discount on their next service. Be sure that customers understand they are rewarded for their review, not only for a positive review.

If you have been running Local Service Ads for some time and are not getting a lot of leads, there are a few things you can try to make sure you’re making the most of your ads:

• Broaden your service areas and job types. Be sure to list all job types you cater to and extend your service areas as widely as possible. Initially, you might have targeted a very specific area or specialized service. While this can be effective in some cases, it can also limit the number of potential leads. Try broadening your horizons by listing all the job types your business caters to and extending your service areas as far as you can feasibly manage. For instance, instead of focusing on a few zip codes, consider offering your services across the entire county. This wider net can help you reach more potential customers who might be interested in your services.
• Get more Google Reviews. Reviews can play a pivotal role in the success of your Local Services Ads. When potential customers see positive feedback from previous clients, it helps build trust in your services. Aim to have at least five reviews, as this is typically the minimum number needed for reviews to be displayed in your ad. You can encourage your past customers to leave reviews by sending follow-up emails or messages thanking them for their business and kindly asking them for their feedback. Depending on the nature of your business and the preferences of your clientele, it may be necessary to accumulate even more reviews to stand out. For example HVAC contractors may be competing with larger companies that have hundreds of reviews.
• Use high-resolution images in your ad. High-quality images can significantly enhance your ad’s attractiveness. Potential customers often appreciate being able to see the people they might be doing business with, the quality of work being performed, or even the state-of-the-art equipment that might be used in the provision of services. When selecting images, make sure they are clear, well-lit, and professional-looking. Google does have specific guidelines regarding the usage of photos in Local Services Ads, so be sure to review these to ensure your images are compliant. If used correctly, these visuals can provide a powerful boost to your ad’s overall appeal, leading to an increased click-through rate and ultimately more leads. Google accepts photos in the following categories for Local Service Ads:
  • Logo
  • Projects
  • Workplace
  • Equipment & Vehicles
  • Teams
  • Other

Remember that optimizing your Local Service Ads is an ongoing process that requires regular monitoring and adjustments. If these strategies don’t bring about the desired improvement, consider seeking professional advice or experimenting with different approaches until you find what works best for your business. Also, always stay updated with Google’s policies and guidelines to make the most of their platform.

One major benefit of Google Local Service Ads is the payment model where you only pay for valid leads from potential customers. Here is the criteria for what Google considers to be a valid lead:

• The customer sends you a text message or email.
• The customer leaves you a voicemail.
• The customer calls your business, and you answer and speak to them.
• The customer calls your business, you miss the call, they do not leave a voicemail, but you return their message and speak to them or leave a voicemail.
• The customer sends you a booking request.

Google will inform you whether a lead has been charged, or if they internally decided it was not valid and did not charge it. Google’s algorithm isn’t perfect, and some leads get charged that you might not consider to be a legitimate lead. In these cases, Google gives you the opportunity to dispute leads. Here are the reasons Google gives you to dispute a charged lead:

• Solicitation. The call came from a salesperson, prospective employee, or wrong number.
• Spam. The call was a recording, bot, or otherwise not a live person.
• Location Not Served. The customer was looking for a job in a location not listed on your profile.
• Service Not Offered. The customer was looking for a physical store (not a service), or a service that is not listed on your profile.
• Duplicate Lead. The customer had already called with a charged lead for the same job within the last 15 days.

Google regularly reviews and credits disputed leads at its discretion. There are some instances where Google will not credit the disputed lead and maintain that it is valid, such as:

• The customer booked a job and then canceled.
• The customer called outside of normal business hours.
• The customer called to inquire about pricing.
• You called the customer back after a missed call and they did not respond.
• You refuse a job that is listed on your profile, or a specific type of job related to a service listed on your profile.
• Specifically for lawyers, if you have general law leads turned on, Google will not credit a disputed lead for a specific practice area you don’t service.

The cost per lead can range widely depending on several factors such as your geographic location, the competitiveness of your industry, and the specific service being provided. For instance, a lawyer in a large city may pay significantly more per lead than a locksmith in a small town.

To control your spending, you’re able to set a weekly budget based on the number of leads you’d like to receive. Google then spreads this budget throughout the week to try and generate leads evenly. If Google is unable to provide you with the number of leads you’ve budgeted for, it may carry over the remaining budget to the following week.

It’s important to continually monitor your Local Services Ads performance and adjust your budget as necessary based on the results and your business needs. This can help maximize your return on investment and ensure you’re attracting valuable leads (and disputing any irrelevant leads.)

Your ads might not show up every time you search for them due to a variety of factors. These can include your location, budget, or competitor’s ads appearing for the same keywords. If your ads aren’t running at all, there are a few possible causes, including:

• Your Local Service Ads account is not currently active. An inactive account cannot run ads. You may need to confirm some information to reactivate your account, such as:
  • Hours of operation – is your business listed as open and ready to accept customers?
  • Ad schedule – when are your ads scheduled to run?
  • Paused ads – double check your ads haven’t been paused.
• There are unresolved billing or account issues. Your ads won’t run until these issues are resolved. Google will alert you if any action needs to be taken on your account, or if the ads are under review for any reason.
• You have spent your monthly budget. Once your budget has been reached, ads will stop running. You can check your account to see if you’ve already reached your budget for the month.

There are several reasons why you might want to hire a company to manage your Google Local Services ads. Here are some key reasons:

• Expertise and Experience: Advertising agencies usually have professionals who are experienced in managing online ads. They know how to optimize your ad to get the best possible results. Their expertise can be particularly useful if you’re not familiar with the nuances of Google Local Services ads.
• Time Management: Running a business is time-consuming. If you’re trying to handle advertising on top of everything else, it might spread your resources too thin. Hiring a company can free up your time to focus on other crucial aspects of your business.
• Reporting and Analysis: A marketing agency can provide you with detailed reports and analysis of your ad performance. This can give you a better understanding of how your ads are doing and where improvements can be made.
• Budget Optimization: Professionals know how to get the most out of your advertising budget. They understand how to balance cost and reach to ensure your ads are seen by as many potential customers as possible, without overspending. With professional management, your ads are more likely to be effective, leading to a better return on your investment.
• Staying Up-to-Date: The world of online advertising is continually evolving, with platforms like Google frequently updating their algorithms and advertising options. A professional agency will keep up with these changes and adjust your advertising strategy accordingly.
• Compliance: Google has specific rules and guidelines for ads, and failing to follow them could lead to your ads being taken down or your account being suspended. Professional ad agencies are familiar with these rules and can ensure your ads are compliant.