Local Services Ads Compared With Google Search Ads
How Google's pay-per-lead ads compare with Search ads, and when to run one, the other or both.
Key Takeaways
- Local Services Ads charge per lead and sit at the top of many local service searches with a Google badge, while Search ads charge per click and give you far more control.
- Local Services Ads suit eligible home and professional services that answer the phone quickly and have strong reviews.
- Search ads suit you if you need to target specific services, control the messaging or send people to your website.
- Many service businesses run both, with Local Services Ads for calls and Search for specific high-value services.
On This Page
If you run an eligible home or professional service business, answer calls quickly and have plenty of good reviews, Local Services Ads are usually the easier place to start, because you pay for leads and the ads sit at the very top of many local searches. Search ads give you more control over which services and searches you pay for and where people land, which suits you if you have specific high-value services or a strong website. Most established service businesses get the best results running both.
How Local Services Ads Work
Local Services Ads show your business name, rating, years in business and a badge such as Google Guaranteed or Google Screened, depending on your business type. You go through a verification process before the ads can run. You pay for leads (calls and messages) rather than clicks, and ranking depends heavily on reviews, responsiveness, proximity and how many leads you answer. Learn more on Google's Local Services Ads site.
Side by Side
| Local Services Ads | Search ads | |
|---|---|---|
| You pay for | Leads (calls, messages) | Clicks |
| Position | Above Search ads on many local searches | Top or bottom of results |
| Control over searches | Limited to service categories and areas | Keywords, negatives, match types |
| Landing | Your Local Services profile | Any page on your website |
| Setup effort | Verification, licensing and insurance checks where required | Campaign build and tracking |
| Biggest ranking factors | Reviews, responsiveness, proximity | Bid, ad quality, landing page |
Lead Charges and Credits
Google's rules for how Local Services leads are charged now spell out which contacts you pay for, and they affect your cost per lead as much as your bid does.
| Situation | Charged |
|---|---|
| Missed call during business hours, caller stays on the line more than 20 seconds | Yes |
| Caller hangs up at an automated menu without pressing a key | No |
| Same customer contacts you again within 15 days | No, it counts as the same lead |
| Lead Google judges low quality during its 30-day review | Credited automatically |
| Message or email lead | Yes, usually at a lower price than a call |
Leads can still include wrong numbers, job seekers or requests for services you don't provide. Check the Charge Status column on your Leads page each week, where each lead shows as Charged, Not charged, In review or Credited. Dispute any invalid lead that wasn't credited. Keep your listed business hours accurate and staff the phone during them, since missed calls inside those hours now cost you.
Choosing Which to Run First
Local Services Ads first if you're in an eligible category, can answer calls during business hours, have strong reviews and want calls with little management.
Search ads first if your most profitable work is a specific service or you need to send people to a page with pricing or galleries. Also start here if your category isn't eligible.
Both once each is running well. Local Services Ads capture people who call straight from the top of the results, while Search covers specific services and searches the badge ads don't reach.
Running Both Together
Track each one separately, using the Local Services lead log for one and call tracking for Search. Compare cost per booked job, since Local Services leads and Search clicks are priced differently.
Frequently Asked Questions
Are Local Services Ads cheaper than Google Ads?
They charge per lead instead of per click, so your cost per lead can land lower or higher depending on your category and market. Compare cost per booked job.
How do I rank higher in Local Services Ads?
Collect more reviews, answer calls and messages quickly and keep your hours and service areas accurate.
Can every business run Local Services Ads?
No. They're only available in specific categories and locations. Check eligibility on Google's site.
Sources
- Google Local Services Ads ads.google.com
- How leads work, Local Services Help support.google.com
Choose the Right Google Ads for Your Business
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