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Google Local Service Ads: What You Need To Know To Advertise Like A Pro

By Leadhub
Posted on February 17th, 2023
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There are two main parts of search engine result pages (SERPs): organic and paid. Whether you’ve already begun exploring the paid side of advertising with Google or are just starting out, there’s some basic knowledge you should have that will help you make smart decisions for your company. 

Paid results come from two types of Google Ads: Pay-per-click (PPC) Ads and the relatively new Local Services Ads. You’ve likely already established a PPC strategy for your home service company by this point, but you may not have done so with LSAs.

Let’s change that!

What Are Local Services Ads? 

LSAs are the ads that appear above both the organic results and PPC ads on the SERP. They are truly top of the search results, making them most likely to be seen by your potential customers.

LSAs are only targeted to people in your service area who are searching for the type of services your company offers. As you can see in the example above, the LSAs provide minimal information about your company like hours and location. They also pull in reviews from your Google My Business profile. The ads are much smaller and require little leg work in terms of creation. 

One thing that likely caught your attention is the Google Guarantee badge, which is earned through a screening and verification process with Google and costs $50 per month. Having the badge means unhappy customers who come through LSAs can request a refund of up to $2,000 from Google. Having Google back your customers can be more powerful in building trust than you think!

Differences Between Local Services Ads And PPC Ads

LSAs have some major differences from PPC ads that make them a staple of any digital marketing strategy. 

Pay Per Lead With LSAs

Unlike PPC ads, where your business is charged per click, you are only charged per lead with LSAs – unless you get a phone call or message from a potential customer, you don’t get charged. In that sense, it’s smart to move forward with LSAs if you have even the smallest budget to handle any leads you do get from them.

“We call it the low-hanging fruit,” says Colby Doyal, one of Leadhub’s Google ad specialists. “If you’re doing PPC ads, you might as well create an account for LSAs. You’re only paying per lead.”

LSAs Work With ANY Budget

LSA budgets are typically much smaller than PPC budgets. Most Leadhub client accounts are 2:1 at a minimum in terms of spend between PPC and LSAs – but the cost per acquisition with LSAs is much lower than PPC ads.

Let Your Services Do The Talking For You

In addition, there is no keyword strategy associated with LSAs. Google selects whether to show an LSA based on what the user searches for – but your business information and services will determine if you’re eligible to be part of it or not.

Balance The Playing Field

Competition and location are key factors in acquiring leads with LSAs. A busier location with more competition lowers your chances of being featured. However, unlike PPC ads, your budget will not play a role in your company being shown.

“Google mentioned to me that they wanted to make the LSAs more equal,” Doyal says. “If you have a bigger budget with PPC ads, you’re usually going to be the top dog. Google is trying to make LSAs a more even playing field so that even the smaller companies with smaller budgets can be seen.”

Maximizing Your Local Services Ads

So, how can your home service business increase its chances of success with Google Local Services Ads? Here are a few things to keep in mind:

  • Make sure your office location and services are accurate: These are no-brainers, but you must ensure your business is being included in the right service categories in the right place to see any level of success with LSAs.
  • Make sure you have photos on your account: These photos are shown if someone clicks on your LSA and can help catch someone’s eye.
  • Make sure you have the Google Guarantee: Let’s be honest. Not having the Google Guarantee is likely going to hurt your chances of being featured in LSAs.
  • Make sure you respond: Again, this is a no-brainer – but if you get a lead through LSAs, answer or respond! We especially see problems with home service businesses advertising themselves as 24/7 in LSAs. You should only do that if your call center is truly answering calls 24/7. Otherwise, don’t claim it to be true – or don’t run your LSAs 24/7. There’s likely no faster way for Google to throttle your potential than by ignoring leads coming through these ads.
  • Make sure you manage your account: Actively updating lead information inside the LSA dashboard sends positive signals to Google and helps your chances of placement in LSAs.

Start Using LSAs Today!

To get your home services company in front of the people that need your services, you need to be using every tool in your toolbox. LSAs are a great way to increase your chances of converting a lead. Ready to start with Google Local Services Ads for your home service company? Follow the Leadhub LSA Playbook to get off on the right foot! 

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