Local Service Ads: How to Generate More Leads with Google’s Pay-Per-Lead Platform
Google’s global reach has always been one of its biggest strengths, but customers often need help close to home. If your engine starts smoking in your driveway in Chicago, for instance, you don’t want to look at businesses in Ohio and Tennessee. You need a reliable mechanic in your neighborhood ASAP.
As a business owner, Google Local Service Ads (LSAs) can help you connect with customers at the right time and place. This platform lets local companies advertise their services to nearby users. These ads appear right at the top of the search results, so they’re practically impossible to miss.
With 98% of customers searching online for nearby businesses, local advertising isn’t a luxury anymore. It’s absolutely essential. This article breaks down the differences between Local Service Ads and traditional Google Ads. It also shares practical tips for optimizing your LSAs and managing all your new leads.
What Are Local Service Ads?
Google Local Service Ads are pay-per-lead advertisements that appear when customers search for nearby businesses. You only pay when people call or message your company through the ad.
These ads are only available for certain service-based businesses. For example, body shops and mechanics can use LSAs, but a store that sells car accessories can’t.
What Do Local Service Ads Look Like?
Local Google Service Ads are small boxes that appear at the top of local search results. They’re labeled “Sponsored,” so users can quickly tell the difference between paid promotions and organic content.
The ads include key information about your business, such as:
- The number of years in business
- Relevant services (such as engine repairs)
- Service area
- Business hours
- Number of Google reviews and rating out of 5 stars
- Call and messaging buttons
Plus, some businesses have a green Google Screened badge and a License Verified by Google badge. That means they’ve passed a background check and demonstrated that they meet licensing and insurance requirements.
How Local Service Ads Benefit Local Businesses
Many service providers invest in Google Local Services Ads, including auto repair businesses, HVAC installers, and plumbers.
Here are four benefits of using these ads:
- Reach more local customers.
Most obviously, LSAs help you connect with new leads through targeted outreach. For example, you can choose to only show your ads to people in specific zip codes.
- Boost your visibility.
LSAs instantly rocket your business to the top of the search results. It’s an easy way to get seen, especially if you don’t have a lot of time to invest in local search engine optimization (SEO).
- Save money with pay-per-lead pricing.
Traditional Google Ads and
Yelp Ads use a pay-per-click model, but not every click turns into a paying customer. By contrast, LSAs only charge you when a lead gets in touch, so your budget goes farther.
- Beat the competition. Around 6% of customers click the first or middle Google Local Service Ad box. That might not seem like a lot, but those clicks can give you a significant edge in the local services market.
How Billing and Lead Management Work in LSAs
Google lets you set a monthly budget for your LSAs and shows them to nearby people searching for relevant local services. You only get charged when a lead calls or messages you through the ad.
Once you’ve spent your entire budget, Google stops showing your ads until you increase the limit or the next month starts. This setup means you’ll never have to worry about accidentally overspending. LSAs also typically have a higher conversion rate than pay-per-click ads, because the people who actually contact your business are usually more serious about scheduling an appointment.
The cost of Local Service Ads for Google depends on three factors:
- Location
- Number of leads per month
- Industry
Say, for instance, you own an auto body shop in Gainesville, Florida (zip code 32608), and you want to attract 20 leads per month. The LSA calculator estimates that you’ll need to budget $440 to $660 per month to meet this goal.
Once a lead contacts your business through your ad, Google will forward their calls or messages to your phone. Many potential customers are ready to buy at this stage — they probably wouldn’t call you if they weren’t — so respond quickly. You can also sign in to your lead inbox to see leads and scheduled jobs.
Eligibility and Google Screening Process
Businesses can only purchase Local Service Ads for home services and related categories. Over 70 types of businesses are currently eligible, including:
- Auto body shops
- Auto repair shops
- Car washes
- Electricians
- Locksmiths
- Plumbers
- Tire shops
Google screens all businesses to verify that they’re legitimate and trustworthy. This process typically involves these steps:
- Matching the information in your
Google Business Profile to your LSAs
- Verifying that you own your Business Profile (usually through video)
- Passing a third-party background check
- Verifying that you and your employees are properly licensed
- Passing an insurance check
- Maintaining a high rating and positive reviews
In some cases, you may need to pass an advanced verification screening process. This could involve a video interview and proof of business registration.
While this process takes some legwork, it helps strengthen your reputation. Many customers know that only professional and reliable businesses can run Google Local Service Ads. As a result, they might be more likely to contact your company than someone with just a website (or worse, only a business card).
Optimizing Your Local Service Ads Profile
Just setting up Local Service Ads for Google isn’t enough to attract leads. You also need to make sure your ads clearly communicate what your business is all about.
Follow these steps to create an effective profile:
- Choose a manageable service area.
This might take some fine-tuning. Cast too small a net, and you’ll only get a trickle of leads. But if you include too many zip codes, you might reach people who aren’t willing to travel to your business — or spend all day racing around the city to meet clients.
- Tell Google about your company.
Add your address, hours, and other essential details. You’ll also need to pick a business category, such as “auto body shop.”
- Write persuasive service descriptions.
Tools like Ahrefs and Google Keyword Planner make it easy to conduct
local keyword research. Use relevant terms to describe your services so they match what customers are looking for.
- Add high-quality photos. Upload professional pictures of your storefront, team, and services. These images will make your business seem more legitimate.
Best Practices for Optimizing Local Service Ads
The work doesn’t end once your LSAs go live. These best practices will help you get the most out of your campaign:
- Monitor your performance with Google’s built-in analytics tools. You can track the number of bookings, conversion rate, and other metrics.
- Adjust your budget as necessary to meet your booking goals.
- When you’re chatting with new customers, ask them how they found your business and what drew them to your ad. Use this feedback to make your future marketing campaigns even more effective.
Drive More Local Leads With Google Local Service Ads
LSAs are an excellent way to spread the word about your business. These ads typically reach customers who are eager to book, so they can have a huge impact on your bottom line.
At Optimize Digital Marketing, our advertising experts can help you set up and manage your Google Ads. We can also improve your website’s SEO to increase your visibility in organic search, so you have multiple chances to connect.