The dominance of search engines presents a serious dilemma for small businesses. On one hand, your online content can be more detailed and enticing than a few lines in a phone book. But on the other hand, rankings are much more important online. Instead of skimming an alphabetical list of businesses, customers may glance at only the top two or three search results. 

In a perfect world, your website would pop up at the top of the results page organically. But climbing the rankings can take a long time, especially in a competitive market. Just try ranking No. 1 for “pizza in Chicago,” for instance — you’d probably have better luck switching to a whole new cuisine. 

With Google Local Services Ads (LSAs), though, you can pay to get bumped to the top of the results pages. It’s one of the fastest ways to reach local customers, and it’s probably not as expensive or complicated as you assume.

What Are Google Local Services Ads? 

Think back to the last time you used Google to find a nearby business. You probably typed in local keywords like “best lasagna in Des Moines” or “cheap windshield replacement near me.” When you clicked "enter," a business listing may have appeared at the very top, along with the word “Sponsored.” That’s a Google Local Services Ad. 

Businesses pay Google to display LSAs when customers search for relevant products or services. These ads have the same information as an unpaid business listing — a rating, business hours, and so on. However, Google pushes them to the top of the results, even over higher-rated competitors. 

Here are a few reasons to consider investing in LSAs: 

• Affordable pay-per-lead model: For this type of ad, Google charges by leads, not views or clicks. That means you pay only when someone actually contacts you directly through your ad. You might even sneak in a few leads for free if local customers see the LSA, remember your name, and contact you another way later. 
• More visibility: Local ads are the first thing users see, before organic listings and even regular Google ads. Research shows that the No. 1 result gets 27.6% of clicks, so appearing in that top slot can have a huge impact on your conversion rates. 
• More qualified leads: Google Local Services Ads show up only for people who are, well, local. These users are much more likely to be interested in your business than a random searcher who's two states away. 

Setting Up Your Google Local Services Ads Account

LSAs are one of the most accessible digital marketing strategies — certainly easier than filming a YouTube series or launching an e-newsletter. Just follow these steps: 

1. Create a Google Ads account and add your business’s details. 
2. Set a monthly or weekly budget. Google has a free calculator to help you estimate how much you’ll need. For example, a tire shop in San Diego that wants to attract 10 monthly leads should plan to spend around $130 to $200 a month. 
3. Complete the verification process to get the coveted Google Guarantee badge. Google backs this guarantee by reimbursing American customers up to $2,000 if they aren't satisfied with the services they receive from a verified company. This promise could make users more likely to choose your company than an unvetted competitor. 
4. Launch your campaign. 

Optimizing Your Google Local Services Ads

While Google will put your LSA at the top, that doesn’t guarantee that anyone will click it, or even that your ad will show up every time — after all, your competitors might be paying for LSAs, too. 

But you aren't powerless. These best practices will help improve your ad performance: 

• Earn positive customer reviews: An LSA includes your Google rating and the total number of Google Reviews you've received. A business with 4.7 stars out of 5.0 and 300 reviews is more enticing than one with a 3.2 rating and 10 comments. 
• Add high-quality photos: Customers may be wary of a business with blurry or dark photos — and rightfully so. Spend a little extra money to hire a professional photographer so your images are more appealing and actually show what your business is all about. 
• Opt in to advanced features: Switch on texting so you can connect with leads faster. You can also opt in to direct business search, which means only your ad will appear when users search for your name. That way, you won’t get overshadowed by a competitor. 

You can use the first two strategies to optimize your free Google Business Profile, too. Even if another business wins the sponsored ad spot, the search algorithm might still spotlight your listing in the Local Pack or rank it on page one. 

LSAs vs. Traditional Google Ads 

Google offers several types of ads that can fit into your marketing strategy in different ways. Here’s a quick breakdown of two popular options: