What Brands Need To Know About Local Service Ads Part 1

For most businesses, advertising on Google takes place on Google Ads or Google Ads Express. But if you’re a plumber, a locksmith, or another type of local contractor, Google offers an alternative platform that’s perfectly tailored to your needs: Local Services ads.

Local Services ads are precisely what they sound like — an ad format built exclusively for local service providers.

Google originally launched Local Services ads for a handful of service categories in select cities back in 2015. Since then, the program has expanded to every almost major metro area in the U.S., and it has added numerous service categories to its roster. More importantly, it has proved a major success with both service providers and consumers in the markets where it has launched.

If you’re new to Local Services ads and aren’t quite sure where to start, this guide will tell you everything you need to know.

What Are Local Services Ads?

Google’s Local Services ads are a special ad format and platform for local service providers, such as locksmiths, plumbers, and electricians. Local Services ads are distinct from usual Google Ads, offering a different appearance, different features, and a different pricing model.

Many of these differences resolve problems that local service providers have with Google Ads. In the past, the ad formats and pay-per-click model of Google Ads have hurt local service providers. Text ads lack features that consumers are looking for from local contractors. Meanwhile, these ads generate low conversion rates for a number of local service industries, leading to higher costs and limited returns.

With Local Services ads, Google has created a format that encourages clicks and conversions. What’s more, Google doesn’t charge for Local Services ads on a pay per click basis. Instead, it charges per lead.

How Do Local Services Ads Work?

When a user performs a Google search for local service providers — e.g., “plumber in Bronx” or “HVAC technician Anaheim” — Google will include a Local Services section in the search results.

This section will appear at the top of the results, ahead of text ads and organic results. Google will display its top three ads (on desktop search) or its top two ads (on mobile search), as well as an option to explore more results.

Each Local Services ad contains the following information and features:

  • Your business’s name
  • Your Google Reviews rating
  • Your approximate location
  • Your Google Guarantee badge
  • Your business hours
  • Your contact information

When a user clicks on one of your Local Services ads, Google directs them to a detailed business profile that includes the above information, as well as additional information like your list of services, a short business bio, and your Google reviews.

Rather than click on one of the top-ranked Local Services ads, users also have the option of exploring a longer list of Local Services providers. This list is presented based on the type of job needed and the user’s ZIP code. The user can then choose from a full list of Local Services providers in their area.

In addition to appearing in the search results, Local Services ads also appear in results for Google Assistant. Searches made using Google Assistant prompt the user to confirm the type of job they need performed and their address, minimizing the chance of a mismatch.

How Are Local Services Ads Priced?

Unlike other Google Ads, businesses are not charged when a user clicks on a Local Services ad. Instead, Google will only charge your business when the user sends you an email or text, calls and leaves a voicemail, or calls and speaks with a representative. This way, you pay per lead instead of per click.

The average cost per lead varies from service category to service category, and from region to region. Some leads cost as little as $6. Others can cost upwards of $30.

If you receive an invalid lead, you can dispute the lead. If Google finds that the lead was a case of solicitation or spam, from a customer outside your service area, or from a customer who needed a service that you do not provide, Google will credit the cost of the lead to your business.

What Is the “Google Guarantee”?

Business that use Local Services ads can build trust with users through the Google Guarantee. This results in a badge on your Local Services ads.

Under this policy, Google guarantees customer satisfaction on any job booked via a Local Services ad. If a customer is dissatisfied with the results of a job, Google will refund the customer up to the amount of the invoice. This way, customers can book jobs through Local Services ads with greater confidence.

However, each business has a lifetime cap for coverage of $2,000 under the Google Guarantee. If a business exceeds its cap, Google rescinds the guarantee and removes its “Google guaranteed” badge from your Local Services ads.

Thankfully, you’ll have the opportunity to make things right with any dissatisfied customer before Google provides a refund. Additionally, Google will only issue a refund after investigating a claim.

Why Use Local Services Ads?

Wondering whether Google’s Local Services ads are worth it for your business? Below are five of the biggest reasons why the Local Services platform has been a hit with many local service providers.

  1. Pay per Lead Instead of per Click
    Local services providers usually struggle with the cost of traditional PPC ads, since many clicks result in poor leads. By using Local Services ads, you will only ever pay for actual leads, so you don’t end up wasting money on useless clicks.
  2. Visibility in Google Search Results
    Google has designed its Local Services ads for visibility, appearing at the top of search results in an eye-catching format. This makes them much more prominent and noticeable than standard Google Ads.
  3. Integration with Google Voice Search
    In addition to appearing in Google desktop and mobile search results, Google also provides Local Services results via Google Assistant. According to Google, the number of Google Assistant users quadrupled in 2018 — a market uniquely available to Local Services providers.
  4. Increased Trust with the Google Guarantee
    Trust can be an obstacle for local service providers who advertise through regular PPC ads. The Google Guarantee on Local Services ads gives customers a greater and more immediate sense of confidence.
  5. Simplified Campaign Management
    PPC campaigns on Google Ads require extensive keyword research, compelling ad content, and split-testing different ad groups. For Local Services ads, Google takes care of keyword research and ads are automatically generated. The result is a much simpler and easier approach to paid search ads.