Local service ads; How to Pay Per Lead- Ep #107

Listen to “#107 Local service ads; How to Pay Per Lead” on Spreaker.

Local Service Ads: A Comprehensive Guide for Business Owners

Local Service Ads (LSAs) represent an interesting approach in the digital advertising sphere, especially for businesses in the service industry. In this podcast, we dove into the intricacies of LSAs, demystifying their mechanisms and providing insights for businesses considering this advertising model.

What are Local Service Ads?

LSAs are a distinct category of Google Ads, designed specifically for service-based businesses. Unlike traditional Google Ads, LSAs operate on a pay-per-lead basis, rather than pay-per-click. This model can be particularly appealing as it implies paying only when potential customers reach out directly through the ad.
Eligibility and Qualification: Not every business qualifies for LSAs. Google has specific criteria and industries that are eligible for this advertising model. The process includes a thorough screening and verification to become ‘Google Guaranteed,’ a badge indicating a level of trust and quality.

The Benefits of Google Guaranteed

Becoming Google Guaranteed offers several advantages:
  1. Customer Assurance: The Google Guaranteed badge lends credibility and trust to your business, reassuring customers about the quality of your services.
  2. Reimbursement Policy: In rare instances of customer dissatisfaction, there’s a policy for reimbursement, adding another layer of trust.

Positives and Negatives of Local Service Ads

Positives:
  1. Visibility: LSAs appear above regular search ads, enhancing visibility.
  2. Google Guarantee Badge: This badge can enhance the perceived legitimacy of your business.
  3. Low Maintenance: Once set up, LSAs require relatively minimal ongoing management.
  4. Cost-Effective: Generally, the cost per lead can be lower compared to traditional pay-per-click models.
Negatives:
  1. Lack of Control: Businesses can’t choose specific keywords; Google determines ad placements.
  2. Variable Lead Quality: The quality of leads can be inconsistent due to the lack of control over ad placements.
  3. Budget Utilization: There’s no guarantee that the entire allocated budget will be used.
  4. Setup Complexity: The setup process can be cumbersome, involving background checks and detailed documentation.

Ideal Candidates for LSAs

Businesses that are most likely to benefit from LSAs typically have:
  1. Numerous Positive Reviews: A strong presence on Google My Business with positive reviews can significantly impact LSA performance.
  2. Quality Imagery: Having compelling images to showcase your services can enhance ad effectiveness.
  3. Lead Qualification Capability: Businesses should be prepared to manage and qualify leads efficiently, as each lead incurs a cost.

Running LSAs Alongside Traditional Google Ads

Combining LSAs with traditional Google Ads is often recommended. This dual strategy can increase brand visibility and recognition, as appearing in multiple spots on a search results page can significantly boost the likelihood of customer engagement.

Local Service ads can be a good choice

Local Service Ads offer a unique and potentially beneficial advertising model for service-oriented businesses. While they come with certain limitations and challenges, the benefits, especially for eligible businesses with strong online reviews and imagery, can be substantial. The combination of LSAs with traditional Google Ads can further enhance online visibility and customer acquisition.
For businesses navigating the digital marketing landscape, it’s crucial to weigh these factors and consider whether LSAs align with their marketing strategies and objectives. By understanding the nuances of LSAs, businesses can make informed decisions that propel their online presence and customer engagement.