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Local Service Ads – The Pros, Cons, And How To Get Google Local Service Ads Setup

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Written by Ash Beardsall on October 9th, 2024
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Another type of Google Ads? Surely not! First launched in 2015 in the US and Canada, Local Service Ads (LSAs) became available in the UK for local businesses in September 2020. That’s why they may still sound a little unfamiliar. But what exactly are Local Service Ads? How can they benefit your business? Who qualifies for them? Let’s find out!

What Are Local Service Ads?

Local Service Ads (LSAs) are a special type of ad that appears at the top of Google’s Search Engine Results Page (SERP), similar to Search Ads, centred more on local users searching for local services. From plumbers, electricians, to roofers, LSAs showcase your services based on a user’s search and location. They can be an effective way for local businesses to increase brand visibility locally and boost the number of enquiries, whether via phone calls or messages. 

Example of a Local Service Ad

Local Service Ads vs. Search Ads: What’s the Difference?

There are a few key differences between Local Service Ads and traditional Search Ads:

No Keywords Required

Instead of targeting keywords, Google uses categories for LSAs. It’s important to select the correct categories that align with your business services to ensure your ads show up in relevant searches.

Location-Based Searches

LSAs typically appear for location-based service searches (e.g. “Roofer in Huddersfield”). They can also appear for more generic searches such as ‘roofers’, using a users device location to impact what results to show. So, if a user is in Huddersfield and searches for ‘roofers’ it will show more local Huddersfield results. If however you are in Huddersfield and search for ‘roofers in Leeds’ it will show LSA results for Leeds, not Huddersfield.

Google Guarantee Badge

Businesses that pass Google’s screening and verification process receive a “Google Guarantee” badge, displayed with a green tick in the search results. This badge protects customers who book services through LSAs, providing peace of mind for customers.

Top Placement

Local Service Ads are always placed at the very top of the search results, above both the local map listings and organic (and paid) search results.

No Ad Copy Needed

The ad copy is automatically generated based on factors like name, customer reviews, and opening hours, which are pulled directly from your Google My Business (GMB) profile. Get collecting those five star reviews!

Pay Per Lead, Not Per Click

Unlike traditional Search Ads, you are only charged when a potential customer contacts you via phone or message. This means you don’t need to worry about how well your website converts. 

(The booking feature is available in the US but not yet in the UK.)

No Website Required

Don’t have a website? No problem! LSAs can link directly to your GMB profile instead.

Bidding Strategies

Unlike traditional Google Search Ads, LSAs only have two main bidding options: Automated bidding (maximise leads) and Manual bidding (max per lead). However, similar to Search Ads, you can set a target cost per lead on the automated bidding strategy, to keep control on cost per leads.

Benefits of Local Service Ads

Local Service Ads are a fantastic way to generate enquiries from local users who are actively searching for services that you provide. Let’s explore some key benefits:

  • It’s Simple to Set Up and Manage Local Service Ads

LSAs are straightforward to set up. There are no keywords to manage or ad copy to write. Just provide your business details, select the categories and locations you want to target, set your budget, and you’re almost ready to go. The longest part of the process is Google’s screening and verification, which may include background checks, business registration, insurance, and licence verification. Failure to meet these requirements may disqualify your business from using LSAs.

  • Local Service Ads have Lower Costs

Based on our experience, LSAs tend to yield lower cost per leads compared to that of traditional Search Ads. You only pay when a user calls or sends a message, which can make your advertising budget go further.

  • Local Service Ads have Lead Monitoring and Filtering

LSAs allow you to monitor all your leads directly within the platform. You can filter out poor-quality leads and provide Google with feedback to improve the quality of future enquiries.

  • You Pay Per Lead with Local Service Ads

As already mentioned, with Local Service Ads you only pay when a user either sends you a message or calls your business. This means you’re not relying on a website for conversions. Google may also not charge you for certain calls/messages if they believe the lead wasn’t valid, for example if a customer didn’t respond to your return call or message or a lead was received outside of your business hours. Learn more here on how LSA leads work.

 

Drawback of Local Service Ads

LSAs aren’t all plain sailing. Here are some of the key negatives.

  • Verification Issues

Depending on the type of your business, you may be required to provide various documents, such as business verification and proof of insurance, to get your ads approved. Failure to have certain documents could result in your account not being approved.

  • Lead Quality

With limited control over factors such as keywords and ad copy – compared to a paid search account, this may lead to receiving less relevant enquiries and harder to negate for future searches.

  • Category Limitations

Local Service Ads (LSAs) are not available for all types of businesses, and you may not have the option to select a more niche service within your most relevant category.

  • No Difference in Search Results and Landing Pages

Aside from your business name and reviews, there’s little you can do to differentiate your ad from others on the results page. Additionally, having no landing page makes it harder for you to make your business stand out from your competition.

Here is a list of Local Service Ads Categories currently available in the UK (as of October 2024).

Appliance repair services

Carpenters

Carpet cleaning services

Cleaning services

Worktop services

Electricians

Fencing services

Garage door services

General contractor services

Handyman

Home inspection services

Flooring services

Foundations services

HVAC (heating or air conditioning)

Junk removal services

Landscaping services

Lawn care services

Moving services

Pest control services

Plumbers

Pool cleaning services

Pool contracting services

Roofers

Snow removal services

Tree services

Water damage services

Window cleaning services

Window repair services

Currently available in Greater London only:

Contract lawyer services

Corporate lawyer services

Criminal lawyer services

Employment lawyer services

Estate agent services

Family lawyer services

Immigration lawyer services

Insolvency lawyer services

IP lawyer services

Lawyer services

Litigation lawyer services

Malpractice lawyer services

Personal injury services

Probate lawyer services

Property lawyer services

Road traffic lawyer services

Tax lawyer services

Getting Started with Local Service Ads

Ready to give Local Service Ads a try? You can start by visiting Google Local Service Ads. Enter your postcode to check eligibility and select the categories that are relevant to your business. Once verified, you’ll be ready to go!

Need any help? Reach out to the Splitpixel marketing team today, who will be on hand to help get you up and running. 

Local Service Ads FAQ’s

  • Some of the main differences include:

    No keywords required: You select the services you provide from the most relevant category.

    Location based searches: Local Service Ads are more locally driven, focusing on users looking for services within a particular area.

    Top placement: LSAs appear at the very top spot of the search result pages (if eligible).

    Pay per lead, not per click: You only pay when a user contacts you, whether by sending a message or calling your provided business number.

    No website required: When a user clicks your ad, unlike traditional Search ads, they don’t get sent to your website. You can sync your Google Business Profile (GBP) to automatically pull in your GBP reviews that will then display on your Local Service Ad.

  • No – Google charges you each time a user contacts your business. However, Local Service Ads run on a pay-per-lead model, unlike the traditional cost-per-click model often used in standard Search Ads

  • Local Service Ads (LSAs) tend to be much simpler to manage compared to that of traditional Google Ads Search Campaigns. Here are some quick tips to help you optimise your Local Service Ads:

    • Stay on top of lead quality: If you receive a poor quality lead, archive it. For any successful sales/ new customers, make sure to mark the lead as completed.
    • Select only the most relevant services: Avoid selecting entire categories unless all the services listed are truly relevant to your business. By narrowing your selection, you can improve lead quality.
    • Set appropriate ad running times: Align your ad’s active hours with the times when someone is available to answer calls and respond to enquiries.
  • While costs will vary by sector, in our experience, LSAs tend to yield a lower cost per lead than traditional Search Ads. However, the lead quality for LSAs may not always be as strong, so it’s important to set realistic expectations.

Talk to the team

We love working working on Google Ads Campaigns with charities and non-profits across Yorkshire – from our head office in Huddersfield, to the de facto West Yorkshire capital Leeds, as well as BradfordHarrogateHalifaxDoncasterWakefield and beyond.

If you want digital marketing and Google Ads management from a small digital agency that understands your location and community, all while putting Yorkshire values of integrity, hard work and honest pricing at the heart of what they do, we want to hear from you.

Get in touch with us today!

Headshot of Ash B
Written by Ash Beardsall on October 9th, 2024
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