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Boost Your Local Business with Google Local Services Ads

As a local business, you always want to use the smartest, cheapest and most effective ways to connect with your target audience. Google is always finding new ways to make this happen, and one of these is Local Services Ads. In this blog, I’ll explain how LSAs work and how they can help your business attract more local clients with minimal effort.

Floor Linskens
October 3, 2024
3 Min

Local Service Ads (LSAs) are made for local service providers, helping you connect with potential customers who are ready to book. These ads appear at the very top of Google search results, above regular search ads and organic listings. This top position is important since click-through rates can drop by nearly 50% between the first and tenth search results. With LSAs, your business gets premium visibility, and customers can call, message, or book directly from the ad—making it a highly effective tool.

The Power of Local Search

Let's take the following as an example: a homeowner wakes up to find their kitchen sink clogged, water slowly backing up, and the situation quickly becoming a minor disaster. They grab their phone, type in “plumbers near me,” and there, at the very top of the search results, is your business.

In that moment, you’ve already made a powerful first impression. The customer sees that your business is trustworthy and local, and you’re just one click away from securing a new client. Google Local Services Ads were built for these types searches, connecting businesses with customers who are actively looking for their services.

What makes LSAs even more powerful is how they appear above traditional search ads and organic results, giving your business prime visibility when it matters most. Whether you’re a plumber, a locksmith, or a home repair specialist, LSAs ensure that your business is seen first, ahead of competitors who rely on traditional ads.

Unlike other online ad formats where you pay every time someone clicks on your ad (even if they don’t contact you), LSAs only charge you when a potential customer takes action, such as calling your business or sending a message. This is a big benefit for small businesses, especially if you have a smaller budget.

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Building Trust with Google’s “Google Guaranteed” Badge

In the world of local business, trust is everything. Customers want to know they’re choosing a reliable, reputable company, especially when it comes to services that affect their homes, families, or health. Google Local Services Ads offer a “Google Guaranteed” or “Google Screened” badge that adds a layer of credibility to your business.

Let's go back to our HVAC example; if a potential customer is comparing two HVAC companies in their area, and one has the “Google Guaranteed” badge, while the other does not. The customer will likely trust the one that Google has verified, knowing that their home and comfort are in good hands. This trust can be the deciding factor between someone clicking on your ad or scrolling past it.

The “Google Guaranteed” badge signals to potential customers that your business has been screened by Google. It tells them that Google has verified your licenses, insurance, and background checks, giving customers peace of mind before they even contact you.

Maximizing Your ROI with Pay-Per-Lead

One of the biggest advantages of Google Local Services Ads (LSAs) is their pay-per-lead model. Unlike traditional ads, where you pay for every click (whether or not the person contacts you), with LSAs, you only pay when a potential customer takes real action—such as calling your business or messaging you directly. This makes sure you’re spending money on real leads—people who are actually interested in your services, not just browsing around.

For example, if you run a local HVAC service, you might receive a lot of clicks on a traditional ad, but only a fraction of those people may actually call to book a service. With LSAs, you only pay when someone contacts you, ensuring that every dollar you spend is directed toward people who are actively looking for your services.

It allows you to spend your advertising budget efficiently, investing only in customers who are ready to book. This makes LSAs one of the most cost-effective advertising options available, especially for businesses that rely on local customers.

Managing Your Reputation with Customer Reviews

Customer reviews play an important role in the success of your business and therefore your LSAs. Not only do they appear right alongside your ad, but they also help build trust with potential customers. Positive reviews can make your business stand out from competitors, making it easier to convert leads into paying customers.

For instance, if you run a local landscaping service, having five-star reviews displayed next to your LSA will make a powerful impression on potential clients. When they see that other homeowners have had great experiences with your company, they’re more likely to choose you.

Encouraging satisfied customers to leave reviews directly through LSAs is a smart way to enhance your online reputation. Google makes it easy for customers to submit reviews, allowing you to strengthen your credibility over time. As your business collects more positive reviews, your LSAs become even more effective, helping you attract more customers and establish a strong presence in your local market.

No Keyword Research Required for Local Services Ads

Unlike other types of ads, such as Google Search Ads, where you need to select and manage keywords, with LSAs, there’s no need for keyword research. Google automatically matches your ad to relevant searches based on the business information you provide, such as your services and location. This simplifies the process and ensures that your ads appear in front of customers actively looking for your specific services, saving you time and effort.

Who Can Use Google Local Services Ads?

Google Local Services Ads (LSAs) are available for a wide range of local service providers. They are designed specifically for businesses that provide services to customers at their location or their home. These include industries like plumbing, HVAC, electricians, locksmiths, house cleaning, pest control, and legal services, among many others. To be eligible, businesses must pass Google’s background checks, have the appropriate licenses and insurance, and meet other requirements based on industry and location. You can check through this link if you are eligible for LSA's.

How Do I Set Up Google Local Services Ads?

Setting up Google Local Services Ads is straightforward if you following these steps:

1. Create an Account

Visit the Google Local Services Ads page and create an account. If you already have a Google account, you can sign in using those credentials.

2. Submit Business Information

Enter essential business details such as your business name, contact information, service area, and the types of services you provide. This helps Google determine where and when your ads will appear.

3. Pass the Verification Process

Google will require your business to undergo a verification process. This includes background checks, and submitting licenses, certifications, and insurance documents (depending on the type of services you offer and your location).

4. Set Your Budget

Determine your budget based on the number of leads you want to receive. With LSAs, you only pay for actual leads (like calls or messages from potential customers), making it a cost-effective option.

5. Choose Lead Types

Select the types of leads you want to receive. For instance, you can decide whether you want to receive phone calls, messages, or both.

6. Launch Your Ads

Once your business is verified and your budget is set, you can activate your ads. They will start appearing at the top of search results for relevant queries, giving your business premium visibility.

7. Manage and Monitor

After launching, monitor the performance of your ads using Google’s dashboard. You can adjust your budget, review lead quality, and tweak your targeting to optimize results over time.

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Conclusion

Google Local Services Ads (LSAs) give local businesses a powerful and cost-effective way to reach customers ready to book. With placement at the top of search results, a pay-per-lead model, and features like the “Google Guaranteed” badge, LSAs provide visibility and help build trust with potential clients.

By eliminating the need for keyword research and focusing on connecting businesses with high-quality leads, LSAs makes the process easy while maximizing return on investment. Setting up LSAs is straightforward, and tools like customer reviews help further boost your ad performance, driving long-term growth for your business.

FAQs

1. Who is eligible to use Google Local Services Ads?

LSAs are available for a wide range of service providers, including plumbers, electricians, HVAC technicians, locksmiths, pest control, and legal services. To be eligible, businesses must pass Google’s background checks and meet licensing and insurance requirements.

2. How do LSAs differ from regular Google Ads?

Unlike traditional Google Ads, LSAs don’t require keyword research. Google automatically matches your ads to relevant searches based on your business details. Plus, you only pay for leads (calls or messages), not clicks.

3. How much does it cost to run Google Local Services Ads?

LSAs work on a pay-per-lead basis, meaning you only pay when a customer contacts you directly through the ad. The cost per lead can vary depending on the service and location but offers a cost-effective way to generate high-quality leads.

4. How does the “Google Guaranteed” badge work?

The “Google Guaranteed” badge appears next to your LSA after Google verifies your business, including background checks and ensuring you meet licensing and insurance standards. It helps build trust with potential customers, giving your business a competitive edge.

Still have questions?

Contact us for further assistance.

  • Complete Your Business Info Accurately: Ensure all details, like service area and offered services, are up to date to help Google match your ads with the right searches.
  • Use the “Google Guaranteed” Badge: Boost trust by completing Google’s verification process and earning the “Google Guaranteed” badge to stand out from competitors.
  • Pay Only for Leads: With the pay-per-lead model, you only spend on potential customers who take action, ensuring your budget is focused on real opportunities.
  • Encourage Customer Reviews: Positive reviews are displayed alongside your ads, making your business more attractive to potential clients. Encourage happy customers to leave feedback.
  • Monitor and Adjust Regularly: Use Google’s dashboard to track performance and fine-tune your ads to ensure you’re getting the best return on investment.
Written by:
Floor Linskens
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