Google Local Service Ads: What are they and how to use them?

Find out what are Google Local Service Ads (LSAs) and how they can help your business.
By Benedict Adam

Google Local Service Ads (LSAs) are a powerful tool for local businesses to connect with potential customers searching for services in their area. Designed to help businesses stand out and build trust, LSAs make it easy for users to find and contact service providers, directly through Google Search. 

Here’s everything you need to know about LSAs, including what they are, costs, setup, coverage areas and how they work.

What are Google Local Service Ads?

Local Service Ads appear at the top of Google search results when users search for specific services in their location. Unlike traditional Google Ads, LSAs are designed for service-based businesses such as plumbers, electricians, locksmiths, cleaners, and other local service providers.

Key features include:

  • A “Google Guaranteed” badge that builds trust with potential customers.
  • The ability for users to call or message businesses directly from the ad.
  • A pay-per-lead model, meaning businesses only pay when contacted through the ad.

 

How much do Google Local Service Ads cost?

Unlike pay-per-click (PPC) advertising, LSAs operate on a pay-per-lead basis. Costs vary depending on:

  • The type of service being advertised.
  • The competition in your industry and location.
  • The quality of leads (e.g., phone calls or direct messages).

On average, leads can range from £5 to £50 per lead, depending on the above factors. Businesses can control costs by setting weekly budgets and choosing how many leads they want to pay for.

 

How to set up Local Service Ads

Setting up LSAs is straightforward, but it involves a few important steps to ensure you’re eligible and ready to receive leads. Here’s how:

  1. Create a Local Service Ads account Visit the Google Local Service Ads platform and sign up for an account.
  2. Verify your business Google requires businesses to pass background checks, provide insurance information, and meet licensing requirements for your industry. This step ensures trustworthiness and helps you earn the “Google Guaranteed” badge.
  3. Set your budget Decide how much you’re willing to spend on leads each week. Google will use this budget to deliver as many leads as possible within your set limits.
  4. Choose your service categories and areas Select the types of services you offer and specify the geographical areas where you want your ads to appear.
  5. Optimise your profile Add details such as your business name, hours, photos, and customer reviews. A well-optimised profile increases the chances of users choosing your services.

 

Where can Local Service Ads be used?

LSAs are currently available in multiple countries, including:

  • The United Kingdom
  • The United States
  • Australia
  • Canada
  • Germany

In the UK, LSAs are particularly popular in larger cities, such as London, Manchester, Birmingham and Glasgow, but they’re gradually expanding to smaller towns and regions.

 

How do Google Local Service Ads work?

LSAs are designed to streamline the process of connecting businesses with local customers. Here’s how they function:

  1. Search display: When a user searches for a service (e.g., “plumber near me”), LSAs appear at the top of the search results, above standard PPC ads and organic listings.
  2. Customer interaction: Users can view your business details, customer reviews, and Google Guaranteed badge. They can either call or message you directly through the ad.
  3. Pay-Per-Lead: You’re only charged when a potential customer contacts you via the ad. This ensures you’re paying for actual leads, not clicks.
  4. Customer reviews: Reviews play a significant role in boosting your LSA performance. Google highlights businesses with strong ratings and reviews, increasing their visibility.

 

Why use Google Local Service Ads?

LSAs are a cost-effective way to generate high-quality leads. By leveraging the trust of the “Google Guaranteed” badge and only paying for real enquiries, businesses can maximise ROI. 

They’re especially beneficial for small to medium-sized businesses looking to grow their customer base, without overspending on advertising.

Google Local Service Ads are a game-changer for service-based businesses. By focusing on lead generation, geographic targeting and customer trust, they offer a streamlined way to grow your business. Whether you’re a plumber in Brighton or an electrician in Hove, LSAs can help you connect with the customers who need your services most. 

Contact GOAT today to take the first step in setting up your Local Service Ads to see the difference they can make for your business!

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