Google Local Services Ads are paid ads that help local service businesses collect leads directly through phone calls and message requests.
They only appear for relevant local businesses to the person searching. And at the very top of Google’s search results.
These ads can display the company’s name, reviews, ratings, city, phone number, opening hours, and more.
The Difference Between Local Services Ads and PPC
You pay per lead with Local Services Ads (LSA). Unlike pay-per-click (PPC) advertising, where you pay when someone simply clicks on your ad.
There’s no direct keyword bidding on ads for Local Services. You can instead let Google set your bid. Or manually set your own maximum bid per lead.
Plus, with PPC, you need to do the hard work of keyword research and A/B testing to show up for the right search queries and find customers.
But with LSAs, Google automatically generates your ads and determines rankings by your review rating, response rate, and proximity to a searcher’s location.
And you’ll only pay if a customer calls, books, or messages you directly through the ad.
Note: Google LSAs shouldn’t replace PPC ads or organic listings. They simply provide a way to reach different customers at a different stage of the marketing funnel..
How to Know if Your Business Qualifies for Local Services Ads
Note: The supported services may vary by location. For example, law firms can use LSAs in the United States but not in the United Kingdom. Use Google to check your business eligibility .
But even if your business is eligible, you must pass Google’s screening and verification process before running Local Services Ads.
The process varies by industry and location. And may include background, business registration, insurance, and license checks.
How Much Do Google Local Services Ads Cost?
Local Services Ads are pay-per-lead and can cost around $25 USD per lead. Costs can vary widely. Your exact LSA cost will depend on your location, industry, and competitors.
And once you reach your monthly limit, your ad stops showing. Unless, of course, you increase your budget.
What Is Google Guarantee?
The Google Guarantee is a badge that appears in Local Services Ads for home service providers. It shows potential customers that Google has vetted your business.
Only home service businesses that have passed Google’s screening and verification process can get a badge. Which can give customers peace of mind.
An additional benefit of the Google Guarantee badge is that Google may reimburse customers who are dissatisfied with the quality of your work. At no cost to you.
Note: Customers must book services through Local Search Ads to be eligible for reimbursement. And reimbursement is solely at Google’s discretion.
Google will not reimburse customers for add-ons or future projects, damages to property, dissatisfaction with price or provider responsiveness, or cancellations.
What Is Google Screened?
Google Screened is an endorsement badge that shows that a professional service business has passed license checks. Which can help build trust with potential customers.
The free screening process verifies that professional licenses are current. Both when businesses join Local Services and on an ongoing basis.
Note: The Google Screened badge is currently only available for businesses in select verticals in the United States.
How to Set Up Google Local Services Ads
1. Create Your Profile and Check for Eligibility
If you already have a Google Ads account, click “ Sign in .” If you don’t, click “ Get started .”
Then, create your profile by filling in all your business details. Including name, address, website, service areas, service types, business hours, and more.
Some fields are optional. But the more information you give Google, the better your chances of getting approved.
You can’t edit anything in this step. It’s just a preview of what your ad can look like in Local Services Ads.
2. Prove Your Business Is Trustworthy
In the next step, you’ll get the chance to let Google know your business is trustworthy.
Depending on your location and service category, you’ll be asked to provide more or less information.
Then, with all the information you’ve entered, Google will automatically start looking for reviews on your Google Business Profile .
Note: Your review score and the number of reviews play a big role in how Google ranks your business.
You can send these links to previous or current customers to get reviews. Any review you get from these links will be shown as verified reviews.
The next step is to choose the type of bidding you want. And your weekly budget.
If you already have a Google Ads account, Local Services can use your existing payment information.
3. Wait for Approval
It depends on your business type and the state, province, and country in which you operate. (Among other factors.)
To learn what’s required to complete your screening and verification, check out Google’s requirements page .
How to Manage Your Local Services Ads
To start running ads, click on your “ Account name ” and then hit “ Edit Profile .”
Then, you’ll see a switch button that says, “Your ad is paused.” Toggle it on to launch your Local Services Ads.
Manage Your Account
If you want to increase or decrease your budget, click the pencil icon at the top right. And adjust accordingly.
“ Job types ” lists all the services you offer. If you add or remove services at any point in time, adjust them here.
This can give potential customers an impression of what your business looks like. It helps build trust and reputation.
Turn this option on so leads can contact you via message and email. In addition to calls. Messages are 50% of the cost of a phone lead .
Then, if you scroll down a little more, you can confirm your service areas and business hours.
Manage Your Leads
Leads are folks who have shown interest but aren’t customers yet. So, the sooner you follow up, the higher your chances of converting that lead into a customer.
Note: You can also manage your leads via the Local Services app on Android and iOS .
As well as a list of each customer, job type, location, lead type, and last activity.
Including the status, lead type, business category, and a few sections for you to add additional information.
Manage Your Reports
You’ll see an overview of your budget, how many leads you’ve been charged for, and any appointments booked.
If you scroll down, you’ll see specific information about your leads. Like phone number, name, lead type, and business category.
This specific information can help you evaluate whether the leads coming in are high-quality. Or if you’d need to tweak anything to get better results.
Plus, this is data coming directly from the ad platform. Something you don’t get with regular Google Ads campaigns.
You can also use the drop-downs to change the “charge status” and “lead status.” And get more granular information.
Manage Your Reviews
Your star rating and number of reviews impact how Google ranks your business within Local Services Ads.
Which means: When managing your Local Services Ads, one of the most important elements is generating reviews . And following up with them.
Click on “ Ask for review ” under the “ Action ” column to ask customers about leaving a review on Google for you.
You’ll need to do that directly on your Google Business Profile. Or use a tool like Semrush’s Listing Management .
You’ll be able to see all your reviews in one place. And reply quickly to help your business gain more trust online.
Improve Your Local Services Ads Performance
Though Google Local Services Ads always show up at the top of Google’s search results, there is still limited space.
So, play around with your budget to find that range where you feel comfortable paying for the leads that are coming in.
And pay very close attention to your reviews. Ask for as many reviews as you can. And reply to all of them in a timely manner.
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