How to grow your business with Local Services Ads

01 What are Local Services Ads?

Local Services Ads is an online advertising solution that gives businesses a more direct way to generate local leads and customers. These local ads appear at the top of Google’s search results when someone searches for location-based terms that match your business (for example, “dentist San Antonio” or “yoga studios near me”) appearing above both organic and pay-per-click (PPC) listings to give you prime placement and visibility. Since you only pay when a customer gets in touch, you’re generating local leads right from the get-go.

While Local Services Ads is a type of Google Ad, it’s not quite the same as the traditional Google Ads experience you may be familiar with. Let’s quickly explore the differences between Google Ads vs Local Services Ads:

• Google Ads uses a pay-per-click (PPC) model, meaning advertisers pay anytime a user clicks on their ad. There are numerous campaign types you can run, including Search, Display, and Shopping, based on your marketing goals. Success generally involves optimizing your keywords, keyword bidding strategies, and ad copy.
  
• Local Services Ads uses a pay-per-lead (PPL) model that doesn’t involve bidding on keywords. Instead, businesses only pay when a potential client reaches out through a phone call, message sent or appointment booked directly from the ad. You showcase the services you offer and the area you serve, and when someone searches for something like “[your service] near me,” your ad displays with your relevant details, a phone number to call directly, and a Google verification badge (more on this further down).

On a high level, Google Ads offers more precise control while Local Services Ads simplifies your local online marketing for a quick start. Both can be used together to help maximize a business’s online presence.

02 What businesses use local advertising?

Local advertising is a common strategy for most businesses to attract nearby customers, often involving tactics like flyers, promotional events, or digital advertising. Advertising locally is even more important for small businesses that serve a defined geographical area. This is where Local Services Ads can offer a highly targeted solution. It’s an ideal advertising tool to connect your business with local customers who are looking for high-quality service providers like you.

03 Is my business eligible for Google Local Services Ads?

Local Services Ads is currently available to select service categories that are most likely to benefit from its features. Some of the eligible business categories include:

• Home: Including plumbing, moving, and general contracting.
  
• Business: Including lawyers, accountants, and real estate professionals.
  
• Health: Including dentists, optometrists, and primary care.
  
• Education: Including preschool, tutoring, and first aid training.
  
• Care: Including child care, pet training, and animal shelters.
  
• Wellness: Including massage therapists, yoga studios, and personal training.
  
• Beauty: Including aestheticians, hair stylists, and lash extensions.
  
• Automotive: Including mechanics, installers, and body shops.

You can find a comprehensive list of eligible businesses on the Local Services Ads “Getting started” support page.

04 How can local business ads help grow my business?

For many service businesses, lead generation from local advertising is essential to finding customers in their area. You need to ensure that you’re getting in front of prospects who are close enough to take advantage of your services.

With Local Services Ads, you can get your message to the right audience quickly, with the benefit of preferred placement above paid and organic listings. When you start to set up your account, you’ll provide details on your service category, business hours, and geographical location. These entries inform where and how your ad appears to potential customers, ensuring your ad is only shown to people near you.

Do I need a website?
No, you don’t need to worry about building a website. While having a dedicated site certainly helps your online marketing, it’s not a requirement to use Local Services Ads. All you need to get started is:

• An eligible business type in a location covered by Local Services Ads.
  
• A Google Business Profile.
  
• Information to help Google screen and verify your business.
  
• A minimum number of reviews (depending on the services you offer).

Once you’re set up, leads come in straight to your phone or email when customers contact you directly, and you can manage and track your ads and leads directly from your Local Services Ads account.

How much does Local Services Ads cost?
Local Services Ads use a pay-per-lead model, meaning you’ll only be charged when a prospect reaches out through a phone call, message sent, or appointment booking directly from the ad.

Here’s how it works:

1. You’ll start by setting a weekly budget, based on how many leads you want to receive (on average) weekly. Note that while you can spend over your average weekly budget, you’ll never spend more than your monthly max. The monthly max is calculated by multiplying your average weekly budget by the average number of weeks in a month.
   
2. Next, you’ll set your bidding mode to the max amount you’re willing to pay per lead.
   
3. You’re charged whenever you receive a lead from your Local Services listing. Lead prices can vary based on location, job type, bidding mode, and more, but each lead will count toward the budget you set. If you hit your monthly max, your ad will stop displaying for the remainder of the month (unless you adjust your budget).

This direct connection between ad cost and tangible leads gives you a more clear indication of your return on ad spend (ROAS), so you can see the true value of every dollar spent.

05 How can I inspire confidence with customers using Local Services Ads?

Businesses that pass Google’s verification process can earn Google Guarantee, Google Screened, and License Verified by Google badges, which can inspire confidence and encourage first-time customers to choose their services.

When you start the process of signing up for Local Services Ads, you’ll automatically be directed to the verification process for these badges. All three badges indicate that your business and its employees have undergone relevant checks and that Google has verified things like your location, business registration, licensing, and insurance.

06 How do I get better results with Local Services Ads?

Local Services Ads are generally easier to set up and manage, compared to traditional Google Ads, since Google automates most of the ad creation and targeting process. You won’t need to manage keywords or create ad copy manually, and ads are automatically generated based on your profile.

However, a slightly more active approach can help you boost your results even more. Google considers several things when determining which Local Services Ads to show a prospective customer. Improving or adjusting these factors can amplify your message.

Key factors include:

• Proximity to the customer: The closer you are geographically to the potential customer, the more likely it is they see your ads.
  
• Reviews: Your review score and the number of reviews you have are important visibility metrics. A high average score indicates that your customers are generally happy, while a high number of reviews indicates that you’re well-established and doing consistent business.
  
• Responsiveness: Answering potential leads quickly and consistently demonstrates reliability to both customers and Google. Improving your response rate can help improve your visibility.
  
• Google Business Profile quality: Some of the important details of your Local Services Ads listing will be populated directly from your Google Business Profile. As such, it’s a good idea to keep your profile page up-to-date with information like services offered, service area, business address, operating hours, photos, bio, and credentials like the License Verified by Google, Google Screened, or Google Guaranteed badges.
  
• Bid mode: Local Services Ads provides three bidding options: “Maximize leads” automatically optimizes for the most leads within budget. “Target cost per lead (tCPL)” is also automated, letting you set an optional target bid. “Max per lead” is a manual option where you set your highest acceptable cost per lead. Google generally recommends using “Maximize leads” for optimal performance.
  
• Budget: Setting an appropriate budget ensures your ads appear for all relevant searches to help maximize lead volume. Local Services Ads offers a transparent way to see how your ad spend translates directly into new business, since you only pay when a qualified lead contacts you.

07 How do I get started with Google Local Services Ads?

Setting up your business on Local Services Ads is simple. Start by creating your profile, which includes checking your eligibility.