Boost Your Local Services Ad Success: Expert Tips and Strategies

Although Google's reach extends to the far corners of the world, some local searches need immediate solutions. People can't wait for a handyman from another state when there's a leak on their roof. Unfortunately, many local businesses fail to convert these leads with just text. This is where Local Services Ads (LSAs) come in to save the day. They are the perfect tool for increasing visibility and driving sales in a specific geographic location.

Keep reading if you want to learn about LSAs because we will share more than how they work. We will teach you valuable inside information on how you can fully utilize this tool to get the best leads possible.

What Are Local Services Ads?

Local Services Ads are a paid advertising product from Google that allows local businesses to promote their services to customers in their area. These ads appear at the top of Google search results pages (SERPs), making it easier for customers to find and connect with businesses.

But they are only available for specific locations and service categories, such as plumbers, locksmiths, and electricians. Businesses must also meet certain eligibility requirements and adhere to Google's policies and guidelines to participate. So be prepared to undergo a strict background check.

There are two types of LSAs: Google Screened and Google Guaranteed.

Google Screened

Businesses must pass a thorough a verification process to get a Google Screened badge. This includes providing proof of business registration, licensing, and insurance and going through a Google-conducted interview.

Having the badge attached to your listing signifies that you have been verified by Google and have met its standards. This type of badge is often used for professional services, such as financial planners, lawyers, real estate agents, and more.

Google Guaranteed

The Google Guaranteed verification process works similarly to Google Screened. However, it is for blue-collar industries like housekeeping, plumbing, and roofing. You will also need to verify your business location, which Google Screened businesses aren't required to do.

So, if you operate in multiple locations, you need to have all of them verified one by one. While that sounds like a lot of work, it does come with a bonus of financial protection for customers. Unsatisfied customers can request a refund, and Google will reimburse them up to the initial amount they paid, subject to a lifetime cap coverage of $2,000.

What Is the Difference Between Local Services Ads and Google Ads?

Google Local Services Ads and Google Ads are two different types of advertising products offered by the same company. LSAs are paid ads used for promoting local services. But they are only available for certain service-based businesses which must meet certain eligibility requirements. They follow a pay-per-lead (PPL) advertising format in which businesses only need to pay for successful leads.

On the other hand, Google Ads uses a pay-per-click (PPC) format where businesses pay for every click the ad gets. It is available to companies of all types and sizes and does not have the same eligibility requirements.

Benefits of Using Local Services Ads

LSAs may not be as well-known as the regular Google Paid Ads. But it is still a powerful tool to get your business out there. If it is available in your country, you should definitely sign up. Here are some benefits of joining this program.

Cost-effectiveness

If you have ever tried a PPC advertising campaign, you know how much paying for a click that isn't a good fit can eat your resources. LSAs use a geo-targeted, pay-per-lead model, meaning you only pay for qualified leads found in your area. This way, you don't waste ad spend on reaching the wrong people and paying for clicks that don't convert.

Increased Visibility

LSAs appear at the top of SERPs, even above regular Google ads. This makes them the first thing potential customers see when searching. Their prime position gives you a big advantage since top results generally get the most clicks.

Increased Credibility

LSAs require businesses to undergo a rigid verification process. This includes verifying your business license, insurance, and other credentials and ensures that only legitimate companies get to participate in the program.

They also show past customer reviews and ratings to help you earn the searchers' trust. But Google's recommendation is backed by more than just reputation. LSAs are also Google Guaranteed, giving customers some protection.

Advanced Analytics

LSAs come with analytics tools that make it easy for you to track and optimize your metrics. Google provides advertisers with detailed performance data and analytics that let you track your number of views and leads generated, cost per lead, conversion rate, and customer reviews.

You also get to see which geographic locations are performing the best if you operate in different areas. With this information, you can make data-driven decisions to optimize your ad campaigns and ensure that your ad spend is used effectively.

Easy to Set Up and Manage

Keyword research and ad testing are necessary steps when setting up Google Ads. But they sometimes feel like never-ending tasks – which they are! LSAs remove the need for these because you only set the ads in your service area. They will be triggered automatically when a customer searches for a keyword relevant to your industry. It could be as broad as "electrician" or as specific as "light bulbs going out too often."

They also make it easy to manage and respond to reviews directly from the dashboard. This lets you interact directly with your customers and improve your online reputation. Overall, LSAs don't just help you promote your business. They also help streamline the whole advertising process, so you don't need to spend a lot of time and effort on business promotion.  

Six Ways to Improve Your Local Service Ads’ ROI

Now that you know the benefits of using LSAs, it is time to learn how to maximize your earning potential using this tool.

1. Let Google Take the Wheel

When setting up an LSA campaign, Google gives you the option to set a maximum cost per lead either manually or automatically. This feature allows you to set the maximum amount you are willing to pay for each lead generated.

Setting a maximum cost per lead can be a useful way to manage your budget and ensure the cost-effectiveness of your ad campaign. It can prevent you from overspending on leads. But this can also mean you may miss out on potential leads if the cost per lead exceeds your maximum.

Allowing Google to do it automatically will take care of this aspect of the campaign management for you. According to expert Tom Waddington, you can expect to pay between $5 and $139, with an average cost per lead of $23. Lead price varies depending on the job type, location, lead type, and bidding mode.

We wouldn't have recommended letting Google take control a few years ago. But times have changed, and so have Google LSAs. This ad platform is now more intuitive than ever. Of course, there is still the risk of overspending. So, make sure to keep a close eye on your campaign.

2. Set High Budgets and Bids

We know we said to let Google take charge of bidding for you. But because of LSAs' reputation of low-cost leads, ads tend to underserve if you set a low budget. So if you want to see results, we highly recommend setting high bids and budgets.

Setting a budget twice or thrice the amount you actually plan on spending is the best approach. So if your goal is to spend $3,000 a month, you should set the budget at $9,000. Aggressive bids and budgets can be scary, especially on a new marketing channel. But you have to remember that you only pay for successful leads. So if you monitor your campaign closely, you will avoid overspending.

3. Respond Promptly

Did you know that your response time largely affects your conversion rates? The faster you respond to queries, the higher the chance of you winning the business. In contrast, poor response time can seriously hurt your business.

So, run your LSA only when the team is there to respond to queries. Don't run your campaign 24/7 if the team cannot support leads around the clock. This isn't just bad for your budget allocation. It also makes you look less reliable to customers.  

4. Encourage Customer Reviews

Customer reviews have a big impact on your ad ranking. In fact, about 77% of consumers regularly read online reviews when browsing for local businesses.

So how do you ask for a review? Clicking the "Ask for Review" button next to the job will send a review link to the customer. You can also ask for a review once the lead is marked as booked. Once you receive one, make sure to respond.

Responding promptly and professionally can help you manage your online reputation and counteract negative reviews. It also makes it easier for potential customers to understand that your business is responsive and cares about customer satisfaction.

5. Keep Your Google Reviews Up

Reviews from your Google Business Profile will appear on your LSA listing. Positive reviews can improve the credibility and trustworthiness of your business, increasing the likelihood of potential customers contacting you.

Review scores are also important in determining your ad relevance and ranking. You need an average score of 3.0 for your ad to remain active. If you have anything lower than that, your LSAs will stop serving until you get your review score up again.

6. Mark Your Leads

Marking leads as books tells Google which ones are most likely to convert, so it will learn where to invest your budget. Likewise, archiving leads that are not a good fit communicates to Google the ones not to spend your budget on.

Aside from helping solve lead quality issues, this is also an ad ranking factor. Google uses the booked leads data to determine ad relevance. This will affect how often the ad appears and how high it is in the search results. Having accurate data will help increase your chances of getting leads.

Quick Summary of LSA Ranking Factors

Local Services Ads are amazing at generating qualified leads, but only if done correctly. They can still get lost in the crowd. After all, you are probably not the one service provider in your area running an LSA campaign. These factors affect how well your ads rank on Google search results.

Your review score, number of reviews, ad relevance, bid amount, business category, and distance to the customer all play a crucial role in how well your ad ranks on Google search results.

It's important to keep in mind that Google's algorithms are constantly evolving and can be influenced by many factors. This includes location, industry, and the specific keywords being searched. Google also puts a lot of emphasis on reviews and qualifications, so businesses with a good number of positive reviews will typically perform better in their LSA campaigns.

Key Takeaways

Local Service Ads can be a powerful tool for driving leads and growing your business. They let you jump the line and go straight to the top of SERPs. But they require a thoughtful and strategic approach.

The key to success with LSAs is to clearly understand your target audience so you can set the right bid, budget, and max cost for better ad relevance. It is also crucial to regularly respond to customer reviews to show your trustworthiness.

By keeping these tips in mind, you can develop a successful LSA campaign that will help your business stand out, drive leads, and convert them into customers. Remember that the algorithm for LSA is always changing, so it's essential to continually monitor and optimize your campaign to get the best results. With the right approach, you can maximize LSAs to their full potential.

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