Google Local Services Ads Explained

LSAs are designed specifically for local businesses like yours to help you connect with people who are ready to book your services right now. 

LSAs aren’t just another option for advertising your business. They’re a way to help you build trust, attract more leads, and make sure your business shows up where local customers are looking.

[Related: What's Up With Google's Local Service Ads?]

What are Google Local Services Ads?

First things first, let’s cover what exactly Google LSAs are. Simply put, Google Local Services ads are a type of paid advertising designed specifically for local businesses that provide in-person services. Industries such as plumbers, HVAC, roofers, lawyers, dentists, and many more can benefit from LSAs. 

LSAs show up at the very top of search results when someone searches for services in their area. They show up above the organic results and even above standard paid ads, making them the first thing a potential customer sees in local service searches. 

So, if your business relies on local customers, LSAs can be one of the most effective ways to get noticed right where people are searching.

[Related: 13 HVAC Google Ads Tweaks That Turn Clicks Into Today’s Jobs]

How Do Google Local Services Ads Work?

Now that you know a little bit more about what Google LSAs are, let’s cover how they work. Google Local Service Ads operate on a pay-per-lead (PPL) model. This means you only pay when a potential customer actually contacts you through the ad, not every time someone clicks on it. This means LSAs are often more cost-effective than traditional pay-per-click (PPC) ads because you’re paying for real opportunities, not just traffic. They help you generate more qualified leads at a lower risk. 

Before your ads can go live, however, Google does require a verification process to ensure your business is legit and trustworthy. Usually, the process includes background checks, license verification, and proof of insurance for certain industries. Then, once approved, your ad can display the “Google Verified” badge, which gives customers extra confidence in choosing your services and helps boost your conversion rates. Businesses with this badge (in addition to fast response times) see up to 40% higher conversion rates. It’s also worth noting that should you not complete the process or if your verification is not approved, you won’t be able to run LSAs.

The pay-per-lead model that LSAs follow already makes them budget-friendly for local business owners, but when you add in factors like customer reviews, proximity to the searcher, and how quickly you respond to leads influence your ranking, they become a no-brainer. Because investing in those areas isn’t wasted dollars. 

If you are already running a traditional paid ads campaign, you can still run LSAs, too! In fact, Google actually recommends running them together.

[Related: How Search and Display Ads Work]

Benefits of using Google Local Services Ads

As a service business that must either travel to your customers or require customers to travel to you, your entire audience is limited to people located within your service area, so LSAs can definitely offer some big advantages.

1. They give you prime visibility on the SERP. Like we mentioned previously, your ad will appear at the very top of Google search results for local service queries. That means when someone in your area searches for what you offer, your business is one of the first things they see.

2. They come with a built-in trust factor. When potential customers see that “Google Verified” badge, they know you’ve already been vetted and approved by Google, which then adds a layer of credibility that makes all the difference when someone is deciding who to call.

3. They use a pay-per-lead model. Unlike more traditional PPC ads, with LSAs you’re only paying for real opportunities… customers who call or message you. When you combine that with the fact that businesses using LSAs report up to 75% higher lead generation efficiency compared to traditional PPC campaigns, LSAs have the potential to deliver a strong ROI for your local business.

[Related: The Complete Guide to Where You Should Advertise Online [Free Guide]]

How to set up Google Local Service Ads

So, the benefits of LSAs have captured your attention enough that you’re ready for the next step: setting them up. Getting started with LSAs is actually easier than you might think … but there are a few key steps to make sure your ads perform their best:

1. Sign up and tell Google about your business - Head to Google’s Local Services platform and create an account. You’ll need to provide details like your business name, service type, location, and contact information. 

2. Set your budget and service areas - Decide how much you want to spend and which locations you want to target. LSAs work on a pay-per-lead basis, so your budget determines how many leads you can expect. You can always adjust your budget whenever you need to.

3. Complete the verification – Google will then verify your business by performing checks on your business registration and identity, along with license validation and insurance (where required).

4. Go live and optimize – Now it’s go time. Your ad will go live with a call or message button to make it simple for customers to tap and reach you. Then, continue to optimize your profile with accurate service categories, business hours, and high-quality photos. The more complete and appealing your profile, the better your chances of ranking higher.

You’ll also want to avoid common mistakes like:

• Leaving your profile incomplete
• Ignoring reviews or failing to respond to leads quickly
• Setting unrealistic budgets that limit visibility

[Related: Why Seemingly Small GBP Errors Have Big Consequences]

Best practices for Google Local Services Ad success

Once your LSAs are up and running, a little ongoing effort can help you get the most out of them. Here are some tips for improving them:

• Collect and manage reviews: positive reviews are one of the biggest ranking factors for LSAs. Encourage satisfied customers to leave feedback on your Google Business Profile (all customer reviews for businesses using LSAs are fully managed through it) and respond to reviews promptly.
• Respond quickly to leads: Google rewards businesses that respond fast. Strive to answer calls within 30 seconds and respond to messages within 4 hours. You can help reduce the likelihood of missed calls by listing a phone number that rings directly to a person. The quicker you reply, the better your chances of ranking higher … and converting that lead into a customer.
• Optimize service categories and hours: make sure your profile accurately reflects the services you offer and when you’re available. This helps Google match you with the right customers. 29% of consumers prefer clicking LSAs, compared to only 11% for traditional Google Ads, so accuracy is important.
• Monitor performance and adjust your budget: check your dashboard regularly to see how your ads are performing and to make sure you’re booking leads that are legitimate. If you’re getting great results, consider increasing your budget to capture even more leads.

[Related: Digital Marketing Musts That Most Local Businesses Overlook]

Let Hibu One handle your ad campaigns

Managing Google Local Service Ads is just one piece of the puzzle when it comes to reaching local customers online. And it’s just one extra thing added to your already busy schedule as a local business owner.

We get it. That’s why with Hibu One, you’ll get a complete, connected digital marketing solution that includes ad campaigns, local SEO, reviews and reputation management, and more—all working together to drive leads and grow your business.

Instead of juggling multiple platforms and strategies, we make it simple by handling everything for you, so you get more time back to focus on what you do best … running your business!

To see all the ways Hibu One can simplify your business’s digital marketing, request a demo today.