Are Local Services Ads (LSAs) Right for Your Business?

What is Special About LSAs?

Local Services ads offer numerous benefits for service businesses and potential customers.

Visibility & Positioning

Local Services Ads appear at the very top of the SERPs ahead of organic and even paid search results. This is especially important on mobile devices, where those top results can take up the entire screen.

Reaching Voice Searches

Beyond the SERPs, LSAs can appear in voice search queries through Google Assistant. Recent data has shown that nearly 20% of searches today are conducted via voice, providing another opportunity to be found.

Pay-Per-Lead

Unlike traditional PPC, advertisers using LSAs only pay for valid leads, not clicks. This means you only pay when a customer texts, emails, leaves a voicemail, or calls your business. Depending on your business’s location and services offered, the average cost per lead ranges from $5 to $139. 

As of July 2024, Local Services Ads have transitioned to an automated crediting process. This means that advertisers can no longer manually dispute leads received from your LSAs. The goal behind this change is to streamline the review process and save advertisers time; however, it can make it more challenging to dispute poorly matched leads. 

The Google Guarantee or Google Screened badge

Top LSA advertisers typically display a green checkmark and the text “GOOGLE GUARANTEED” in their ads. This badge is earned by clearing Google’s screening process. To pass, Google performs a background, licensing, and insurance check, as well as screens your ratings and reviews through Google. If a customer books a job through a Google Guaranteed business and is unsatisfied, they can submit a claim to Google. If cleared, Google will reimburse that customer (up to $2,000 within the customer’s lifetime). The Google Guarantee is only for Local Service Ads and cannot be displayed outside LSAs. Businesses focusing on personal care, education, or wellness can earn a Google Screened badge, indicating that their business is licensed and has been evaluated by Google. 

No Keywords or Ad Creatives

LSAs are based on relevant search terms. These searches can range from as broad as “HVAC” to as specific as “AC not working.” From there, the LSAs use the information from your business profile to generate the ad.

Separate Management

LSAs are a type of ad that is not managed through the Google Ads dashboard. Instead, there is an entirely separate dashboard specifically designed for setting up and managing LSAs.

How Do I Get Started with LSAs?

First, ensure your business is eligible. As stated above, supported industries vary by market. Check here to see if your business qualifies.

Then, you can proceed through the form to create your Local Services Ad account and business profile.  The setup process covers the following:

• Your weekly budget
• Business hours
• Service areas
• Services your business provides (called Job types)
• Any special attributes or offers that make your business stand out

Ensure you’re open and honest about your service area and job types, as these factors determine the quality of leads you will receive from your ads. As Google states on the page, “Don’t accept jobs you’re not qualified or licensed to complete.”

While on licensing, you must provide Google with up-to-date proof of your licensing and liability insurance to receive the Google Guarantee. Google requires different documentation for various industries, so please check here for your specific industry requirements.

You must also submit your business and workers to a cost-free background check. If this setup process seems daunting, we would be happy to help you work through the process!

Managing Your Ads & Leads

After setting up your business profile, you are ready to launch your Local Services Ads, but your job isn’t done. Since LSAs are pay-per-lead, you or someone at your business must stay on top of incoming leads. You can manage leads from the Local Services Ads dashboard. It is critical to follow up with these leads; a track record of slow or no responses can hurt your LSA’s ranking and may eventually lead to your business being disqualified.

The Local Services Ads dashboard serves as the central hub for managing the details of your Local Services Ads. From here, you can control the following:

• Manage and Follow Up with Leads – A lead is not a booked job, so be sure to reply to your potential customers via email or text message, call them, or decline the job. If you decline a job, provide the customer with more information about why. You can also manage booked leads to schedule work, send confirmation emails, and gather reviews from completed jobs.
• Manage Your Budget – Payment for LSAs is done based on an average weekly budget. You can change your weekly budget using the slider in the Budget tab. Like Google Ads, the actual weekly spend can exceed or fall below your designated budget, but it will not surpass your monthly maximum budget. If you also run Google Ads, remember that these platforms have separate budgets. You can also turn off your ads if you are too busy to accept new leads.
• Gather Reviews – Reviews are essential for all forms of digital marketing, and LSAs are no different. Reviews are a significant factor in your LSA ad rank. Conveniently, the LSA dashboard makes it easy to request reviews from customers who booked services through your ads. The Reviews tab of the LSA dashboard tracks your completed jobs. From there, you can use the “ASK FOR REVIEW” button to request a review from your customers. Before sending the request, you can create a customized message for your customer.
• Provide Lead Feedback – This feature allows you to help Google understand which leads are most suitable for your business via Lead Feedback Surveys. However, if you are receiving unwanted leads, their recommendation is to revisit your targeting to focus on your ideal customers. 

Staying Competitive

Space is limited even with LSAs at the top of the SERPs. On a desktop, there can be up to 3 LSAs; the number drops to 2 on mobile devices, and only one will appear in Google Assistant results. Like Google Ads, Local Services Ads’ position is determined by ad rank. Unlike Google Ads, Local Services Ads’ ad rank is determined by:

• Your business’s proximity to the customer
• Google Business Profile ratings and the number of reviews received
• Your responsiveness to customers who reach out via LSAs – This includes jobs you decline.
• Business hours
• Serious or repeated complaints – These can result in the suspension of your account.
• Your budget – Like Google Ads, your ads stop running if your budget runs out early.

Should I Consider Local Services Ads?

If you operate a local service-based business, you should consider Local Services Ads. LSAs are a valuable and cost-effective tool that can help drive more customers to your business. On top of that, Google has provided a reasonably straightforward dashboard to manage your leads, follow up with customers, and even request reviews. You can access the dashboard from your office computer or on-site with your smartphone or tablet via the LSA app.

Would you like to get started with Local Services Ads? We can help! Please feel free to reach out to us today.