Local Service Ads: Are They Worth It?

We’ll put it simply: if your business qualifies for local service ads, you should definitely test them out to see if they work for you. Local service ads (LSA), Google ads, and pay-per-click (PPC) ads are all avenues in which you can generate quality leads to your business’s website. It can be difficult to select which advertising method and strategy will fit your objectives the best. Lucky for you, you don’t really have to think too hard about it.

The digital advertising experts at Baal & Spots know everything there is to know about the wondrous world of online marketing. As your partner, we provide tailored local SEO strategies, including ad creation and management, to connect your business to your ideal clients — and you barely have to lift a finger. Give us a call at (832) 662-7725 to discuss what we can do for you.

Let’s discuss what benefits running local service ads as a business can have for your online success.

What are local service ads?

Local service ads are a distinct advertising platform from Google ads, specifically designed for service-based businesses. While Google ads is open to most businesses, LSA is exclusively available to select service industries as determined by Google. Below are the eligible industries for local service ads, followed by specific examples.

Home: Plumbing, moving, and contracting
Beauty: Hairstylist, nail technician, and esthetician
Health: Dentist, optometrist, and primary care
Business: Lawyers, accounting, and real estate
Learning: Preschool, tutoring, and first aid training
Care: Child care, pet training, and animal shelters
Wellness: Massage, yoga studio, and personal training
Automotive: Mechanics, installers, and body shops

If your business or services do not fit into any of the industries above, Google ads and PPC ads are still great options for online advertising.

The purpose of local service ads is to drive local customers to your business profile by showing users what businesses are nearby, which is convenient for the user search experience. It’s an easier way to connect with your customers based on what they’re searching for.

Baal & Spots, I’m still a bit confused about exactly how these are any different from Google ads. No worries, reader, we were just getting to that.

Local service ads vs Google ads

Aside from the industry selection, Google ads and LSA have a few key differences in the way they operate.

Price: PPC vs. PPL

Google ads is primarily a pay-per-click model (PPC) where you are charged for each click your ad receives, regardless of if any conversions take place. Because conversions are the primary goal of online advertising — in the form of calls, “get directions” clicks, website visits, etc. — paying for each click without the payoff can be costly, depending on performance. This is where local service ads may be a better option for you.

Local service ads are a pay-per-lead (PPL) model, meaning you only pay if a user converts after clicking on your ad. This is a cost-efficient way to implement digital marketing for small businesses, as your set budget won’t be blown on every interaction, just the ones that matter.

How much do local services ads cost? The actual cost-per-lead varies per industry, but on average, you will generate cheaper and better-qualified leads with LSA rather than with regular PPC alone.

Targeting

With Google ads, you select your targeting criteria, such as specific keywords or buyer persona parameters, and bid on your ads to appear on those searches. With local service ads, you select your industry and service area(s), and then Google will place your ads in front of local users looking for your services. Both methods have their benefits and drawbacks.

Google ads

Local service ads

Pros

More informative: Your ad copy can be tailored to the user’s intent, leading them to a dedicated landing page on your website detailing that specific service.

Engagement: Website traffic means more time spent on your site, boosting your engagement.

Connection: Users can directly contact your business from these ads, connecting you to locals in your area who are directly looking for your services.

Simplicity: LSA doesn’t require a lengthy setup process with tedious audience build-out. What is your service, and where are you located? Done.

Cons

Competitiveness: Search bidding costs are always rising as the online marketplace becomes more saturated, with multiple businesses vying for users’ attention.

Credibility: If your business does not rank highly on Google, it is less likely that it will be seen by your desired audience. Building and maintaining a healthy ranking on Google takes time and effort.

Visibility

Regarding ad visibility, would you rather be at the top or spread out amongst multiple locations? If you prefer to space your ads out in different locations, Google ads allows you to place ads in multiple areas, including search engine results (SERPs), Google Maps, YouTube, and other locations of your choosing.

Local service ads, on the other hand, may only be visible on SERPs (for now), but they are above any other paid promotion as the first thing a user would see. Here are ways to enhance your business profile ranking to improve your visibility:

Strong SEO: Implementing and maintaining strong SEO strategies such as search engine optimization link building and optimized blogging can push your business higher in Google’s ranks.
Positive reviews: Five-star reviews go a long way on SERPs. The more positive reviews your business profile has, the more credible and relevant your business is to Google. If you have happy customers, ask them to leave you a kind review about their experience. Authenticity matters!
Get that badge: To advertise with LSA, your business has to pass Google’s extensive license and background checks to get the Google Guarantee verification badge. It can be time-consuming with a longer approval process, but the badge will further establish credibility for those looking for your services nearby.

When delivering ads to users, local service ads prioritize ranking, reviews, and proximity, whereas Google ads prioritize ranking and non-geo-specific search relevancy. Your preference can depend on how wide you want to cast your net. You may get more fish, but those fish might flounder.

Tips for running a successful local service ads campaign

If you believe that LSAs are the right fit for your business goals, here are tips to keep in mind:

Optimize your Google Business Profile: With flushed-out and up-to-date information, quality photos of your team and business, a plethora of 5-star reviews, and the appropriate products or services listed, your profile will be more legitimate to both Google and your potential customers.
Mark your lead quality: When you mark leads as booked, it signals to Google that your ads are actively converting and successfully meeting customer needs. You can even receive credit for any bad leads, which can be filtered right back into your ad budget.
Be responsive: Google can penalize you for responding slowly to messages or phone calls generated by local ads.
Implement proper tracking systems: Setting up both a tracking number and special website links (called UTM parameters) can help you see how well your ads are working. This way, you can keep tabs on all your leads in one place and even catch those people who see your ad, check out your website first, and then give you a call.

Does all of this sound overwhelming? Well, that leads us to our last tip: hire the right partner to carry out your advertising needs. One of the main benefits of hiring a digital marketing agency is putting the tough work into the hands of professionals while you focus on more important matters pertaining to your business.

Need help implementing successful local service ads? Let Baal & Spots take the reins.

Here at Baal & Spots, we’ve run successful marketing campaigns using local service ads for a wide variety of clients. For example, we’ve seen great results from local service ads for lawyers who are looking to build their clientele through online marketing. Many of our clients love the pay-per-lead model of LSA because it is low-risk and budget-friendly, allowing us to easily pivot strategically.

Having a partner like us by your side with loads of experience with local service ads as a business can streamline your setup and maximize results. Whether you are interested in experimenting with programmatic media or require multilingual content marketing ad strategies, we can help.

Baal & Spots is a full-service digital marketing agency in Houston that provides quality marketing for ambitious brands who want to thrive online. Let’s get started.