What are Local Service Ads? How to take advantage of other ad opportunities on Google
A local business looking to spend money on ads might assume their only route of advertising online is through Google Ads and Meta Ads. However, a key and sometimes free ad placement many forget about is Google’s Local Service Ads (LSA).
LSAs are great for service-oriented businesses looking to connect with potential customers in their area and generate leads. LSAs appear at the top of the search engine results page (SERP) and show the business name, number, years of business, hours, and ratings and include the option for a clickable phone number.
Businesses typically pay to get the top LSA spot on the SERP, however, if there’s not a lot of competition, they can show up at the top of the SERP for free with just a verified Google Business Account. If you’re interested in learning more about LSAs and their advantages, the Digital4Startups team is here to help.
What Are Local Service Ads (LSAs)?
LSAs first launched in the home service world in 2015 and have now expanded to more and more business categories, with over 100 categories today. Think of LSAs as the 21st-century version of Yellow Pages.
If you are a consumer looking for a local service near you, LSAs will be the first type of ad to pop up in the SERP. They are great for businesses wanting to get more leads and calls and those wanting to drive foot traffic.
They show up at high conversion times and local searches like “near me” searches with a specific location, so people are more likely to see them. The best thing about an LSA is that not only will it show more than a typical search ad (in terms of your business address, contact information, and photos), but it also has strong verification features like background checks, badges, and customer reviews.
Lastly, the main difference in terms of budget for LSAs versus Google Search Ads is that with an LSA, advertisers and businesses pay for leads, not clicks. Additionally, if a lead results to be fraudulent or a poor match, you can dispute it for credit.
What are the benefits of an LSA for Businesses?
A great benefit for businesses interested in creating an LSA is that you can automatically get increased visibility in local searches, especially if your competition for your specific search is low. When there isn’t a lot of competition for the top spot, a business can register just their Google Business Profile and get leads for free showing up under the paid LSAs in the SERP.
LSAs also don’t require ad copy or keyword lists as Google automatically creates them for the business using information from their Google Business profile. With these types of ads, businesses can target specific demographics and locations and even show ads on Google Maps.
These ads can also be more cost-effective than search ads because they may have lower overall costs compared to traditional search ads, especially if the competition for keywords is high. LSAs are also specifically designed for local services, so they can help businesses reach customers in that area looking for their services.
How do you set up an LSA?
Setting up an LSA is fairly simple, first, you need to set up a “Google My Business” account to claim and verify your business and get reviews. Before making your account, it’s also recommended to set up call tracking with the software of your choice and use that number as your business number.
It’s important to note that to qualify for an LSA, Google requires all advertising businesses to undergo various screening procedures. According to Google, the screening process varies by type of service, the country you’re in, and whether the service provider advertises directly with Google or through one of our partner affiliates. Google says screening procedures vary by category and region but may include license, insurance, and background checks.
Once you make your business account and complete screenings, you’ll want to set up a Google Ads account. That way when you go to Google’s Local Service Ad page, you can input all the information previously listed. According to Google, once you have your LSA set up, you’ll get an email and notification from the Local Service Ads app when a customer reaches out.
Then it’s your responsibility to turn that lead into a customer. Google recommends responding to as many of your responses as you can (even if you decline to provide the requested service). Failing to regularly answer calls or respond to messages could affect your ad ranking.
Tips to boost your LSA performance
When setting up an LSA, Google recommends adding a city to your service area as well as a postal code so your ads can show to people who are estimated in that area as well as to people who have shown an interest in that area based on their search terms.
But if you want to get even more specific you can add postal code exclusions from a city in your service area. However, if you still aren’t reaching customers, Google recommends encouraging past customers to give you reviews as the more reviews you have, the higher your ad rank.
High-quality photos in your ads will also help give you more credibility and more leads according to Google. Google also recommends testing budgets and bidding with automated bidding typically working the best.
If you want to see how well your ads are doing you can do competitor research on profiles and look at what services each advertiser can look at. Using a VPN will also help you test your specified search in different locations and see if your ad shows up and you can study changes over time.
Conclusion
Google’s Local Service Ads (LSAs) presents a valuable opportunity for local businesses to enhance their online visibility and attract customers. With a straightforward setup process and the advantage of paying for leads rather than clicks, LSAs allow businesses to effectively compete in local markets.
Forget about the complexities associated with traditional advertising methods, LSAs have the potential for increased visibility, especially in areas with low competition. Features like customer reviews and verification make LSAs an appealing choice for service-oriented businesses.
Through optimizing a business profile and encouraging customer engagement, any business can significantly boost its ad performance and ultimately drive more leads and conversions by running an LSA.
If you have any questions about LSAs or Google Ads and want to schedule a consultation, please email info@digital4startups.com.
