In this article, we’ll talk about the pros and cons of using local services ads through Google to help you decide if they are the right fit for your business.
Local businesses are always on the lookout for effective ways to reach their target audience. In the digital age, Google Local Services Ads have become an attractive option for businesses looking to promote their services to a local audience. These ads are designed to connect service providers with nearby customers actively searching for services on Google. However, like any advertising platform, Google Local Services Ads come with both advantages and disadvantages.
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What Is Google Local Services Ads
Google Local Services Ads are a type of online advertising service offered by Google. They are designed to help local businesses and licensed professionals connect with customers in their specific geographic area. Local Service Ads are specifically for service-based businesses, such as lawyers, real estate agents, plumbers, electricians, locksmiths, HVAC technicians, and house cleaners, who want to reach local customers actively seeking their services. Businesses will apply for Google Local Services Ads, then once they get approved, their listing will be shown above the Google search results just like in this example:
Types of Google Local Services Ads
Google Guaranteed
Google Guaranteed Ads are designed to build trust and confidence among potential customers. When a business is “Google Guaranteed,” it means that Google has conducted background checks on the business and its employees. This service is currently available in select categories, such as locksmiths, plumbers, electricians, and HVAC professionals. When a user clicks on a Google Guaranteed Ad, they’re eligible to receive a refund from Google if they’re not satisfied with the service provided, up to a certain monetary limit.
Google Screened
Similar to Google Guaranteed Ads, Google Screened Ads are meant to instill trust and credibility. These ads are also restricted to certain categories, such as lawyers, financial planners, and real estate agents. To become “Google Screened,” businesses must undergo background checks and verification processes to ensure their legitimacy and professionalism.
Licensed Verified By Google
Licensed Verified by Google shows ads on certain healthcare service providers who have undergone a verification process to confirm that they hold the required licenses and qualifications to operate legally in their field. And even then, it doesn’t apply to a lot of the niches in the healthcare space. For example for dentists, plastic surgeons, physical therapists, and other professions. Google doesn’t always show these ads often and it depends on the location. You’ll have to google your area around you and your industry to see if Google is showing these types of ads for you.
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Pros And Cons Of Using Local Services Ads Through Google
Pros:
- Prominent Visibility: LSAs enjoy prime positioning in Google’s search results. They typically appear above traditional pay-per-click (PPC) ads, giving your business maximum visibility to potential customers actively searching for services in your area.
- Best for specific niches: If you’re in the real estate industry, it is harder to compete against these directory listings
whereas with these local services ads, google gives you a separate space that the directory listing website that runs ads on Google cannot be on. - Trust and Credibility: When your business is listed as “Google Guaranteed” or “Google Screened,” it instills trust and confidence in potential customers. Google’s background checks and verification processes add a layer of credibility to your business, making users more likely to choose your services.
- Pay-Per-Lead Pricing: Unlike traditional PPC advertising, where you pay for clicks, Local Services Ads operate on a pay-per-lead model. This means you only pay when a potential customer contacts you directly through the ad, ensuring you’re only spending on genuine leads.
- Specific Local Targeting: LSAs enable precise geographic targeting. You can specify your service area, ensuring your ads are shown to users in your local region who are actively searching for the services you provide. This focused approach increases the likelihood of connecting with local customers.
- Customer Reviews: Local Services Ads feature customer reviews and ratings. Positive reviews can be a powerful persuader, differentiating your business from competitors and helping you gain the trust of potential customers.
Cons:
- Limited to Specific Service Categories: LSAs are not available for all types of businesses. Currently, they cater primarily to service-based industries such as locksmiths, plumbers, electricians, and HVAC professionals. If your business doesn’t fit into these categories, you won’t be able to use LSAs.
- Geographic Restrictions: Your ability to use LSAs is tied to your location. They are currently available in select regions, primarily in the United States and a few other countries. If you’re outside these areas, you won’t have access to this advertising option.
- Application and Approval Process: Getting approved for LSAs can be more rigorous than setting up traditional PPC campaigns. Google screens and verifies businesses, which can be a time-consuming process. Background checks, license and insurance verification, and compliance with Google’s standards are all part of the approval process.
- Cost of Leads: While the pay-per-lead model can be cost-effective, the actual cost of leads can vary depending on your industry and location. Some service categories and areas have higher lead costs, making it potentially expensive for certain businesses.
- No Differentiation: Everyone looks exactly the same. It’s essentially like a Yellow Pages listing. See here:
- No Landing Page: Unlike having a landing page where it really can sell – Google Local Services ads can’t show before/after photos and you can’t put every information about your business here.
- Lead quality can be bad: It’s possible to get spam leads and lead quality can be bad because there is no differentiation, people just click and submit their information. Also, since you don’t have a landing page here, leads coming in through are going to be cold or have lower intent because you are one of many. Instead of ones that come through a landing page where they are already sold/convinced that you are the right fit.
- Competitive Landscape: As LSAs grow in popularity, competition within your niche can intensify. This may drive up lead costs and make it more challenging to stand out from other local service providers.
- Needs Existing Reviews: If you’re just starting and you don’t have existing reviews on your Business Profile, it might be hard to compete with other businesses listed on Google Local Service Ads.
- Limited Customization: LSAs offer limited customization options compared to traditional PPC advertising. If you require complex ad campaigns with specific targeting, messaging, and design, you might find LSAs restrictive.
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Conclusion
Google Local Services Ads offer numerous benefits, primarily for service-based businesses looking to reach local customers. Their high visibility, trust factor, and specific targeting make them a compelling option. However, their limitations, such as industry and location restrictions, the application process, and potential lead costs, may not be suitable for all businesses.
To make an informed decision, it’s crucial to weigh the pros and cons carefully, considering your industry, location, budget, and advertising goals. Google Local Services Ads might be the right choice for your business’s marketing strategy, but there’s always Google Ads that you can try to fully maximize your business growth and potential. If you want to know more about Google Ads strategy, you can schedule a free consultation with our experts today!
