Local Services Ads (LSAs) are a powerful tool for local businesses seeking cost-effective leads. Take this real estate client, for example, who achieved a tenfold return on investment compared to their traditional lead generation methods:

Local Services Ads for real estate = major achievements While managing LSAs is fairly straightforward once they’re set up, it’s important to note that they’ve undergone some changes since their inception in 2016. These changes affect both the setup process and the target markets they cater to. In this article, we’ll delve into the potential pitfalls and crucial mechanics to consider, along with seven valuable tips to maximize your results with Google Local Services Ads.

Understanding Google Local Services Ads

Before we dive into the tips, let’s briefly recap Google LSAs. For a deeper dive, check out our Ultimate Guide to Google Local Services Ads. Here are the key points:

Defining Google Local Services Ads

Google Local Services Ads are a specialized ad format designed specifically for businesses in the home service industry. Unlike Google Search Ads, which operate on a pay-per-click model with Ad Rank determined by factors like bid amount and ad quality, LSAs utilize a pay-per-lead system. Ad ranking for LSAs is influenced by elements such as customer reviews, proximity to the searcher, and business hours. These ads appear prominently above standard Google Search Ads, and advertisers must undergo a comprehensive verification process.

Distinguishing LSA Types

Google offers two distinct versions of LSAs: Google Screened and Google Guaranteed.

• Google Screened caters to professional service industries such as real estate, law, and accounting.

• Google Guaranteed is geared towards skilled trade industries like plumbing, housekeeping, and locksmith services. The main difference between the two programs lies in Google’s guarantee. Google Guaranteed provides coverage of up to $2,000 for any issues arising from the service provided, while Google Screened does not offer this protection.

Setting Up LSAs

To be eligible for either program, businesses must meet the following criteria:

• Maintain a minimum 3.0 rating on their Google Business Profile.
• Possess an active Google Ads account (potentially an MCC account, which we’ll explain later).
• Complete background checks for all required team members. During the LSA profile setup, you’ll be prompted to provide a review link and input your credentials.

Optimizing Your Google Local Services Ads: 7 ROI-Boosting Tips

Google LSAs streamline the lead generation process for professionals such as lawyers, real estate agents, and home services businesses to show up for local searches. Let’s explore some subtle yet impactful strategies that can significantly enhance the ROI of your LSAs.

1. MCC vs. Individual Ad Account: Making the Right Choice

Establishing a sound account structure from the start is always preferable to restructuring later. Determining whether your brand is better suited for a manager account (MCC) or an individual ad account hinges on several factors:

• Do you cater to multiple major markets?
• Are you a franchise?
• Are you an agency? As a best practice, it’s advisable to limit LSA profiles to a maximum of three major target areas per profile. Exceeding this limit, especially if you serve multiple locations, can dilute your budget focus and potentially jeopardize your proximity ranking. Businesses operating in multiple locations can benefit from having multiple Google Business Profiles, each linked to a dedicated LSA profile for each target market. In essence, unless your focus is on a single market, having more than one profile is recommended. Managing your LSA profiles within an MCC framework allows you to seamlessly switch between them without the hassle of logging in and out repeatedly. Additionally, you gain the advantages of MCC-level billing, reporting, and shared asset utilization. For franchises and agencies, this is particularly crucial as LSA profiles only permit login access sharing with one additional email address.

2. Targeting Strategy: Focusing on No More Than 3 Key Markets

Treat each Local Services Ads profile as you would a distinct campaign. Just as you wouldn’t expect a single campaign to effectively cover more than one major market, it’s unrealistic to expect a Local Services Ad to target more than three. As previously touched upon, an optimal structure involves dedicating each LSA profile to a single primary market, aligned with a corresponding Google Business Profile. However, if you operate with a single GBP but serve multiple locations, ensure that your chosen target locations are in close proximity to your main customer hubs. This strategic selection increases the likelihood of benefiting from the proximity ranking factor.

Targeting an entire county or Designated Market Area (DMA) is considered a single target. Utilize zip code or town exclusions to fine-tune your targeting and steer clear of overly competitive auctions. While there’s no official limit on the number of brands allowed per market, the average number a specific geographical area can support is around 35. It’s crucial to secure your LSA profile promptly and allocate your budget strategically to prioritize markets, ultimately solidifying your presence on the Search Engine Results Page (SERP). RELATED: 10 Local SEO Tips to Dominate the Local SERP

3. Navigating Disapprovals: Avoiding Common Pitfalls

Disapprovals are the most frequent reason for LSAs to stop running. Two common culprits are flagged images and expired certifications. Preventing Expired Certifications: During profile setup, you’ll input certification expiration dates. However, some certifications don’t require renewal, or if they do, it might not be annual. To avoid disruptions, set the expiration date far enough in the future (5-10 years) to provide ample leeway. Avoiding Flagged Headshots: When choosing your headshot, ensure it showcases more than just your face. Ideally, the image should extend down to your elbows. Below is an example of a suitable headshot:

Conversely, here’s an example of a headshot likely to be flagged:

Note that profile pictures don’t need a plain white background or lack personality. The key difference lies in the visibility of your arms.

4. Prioritizing Google Reviews: Maintaining a Strong Reputation

Remember that reviews on your primary Google Business Profile directly impact your LSA profile and ad ranking. However, reviews received through LSAs won’t transfer to your GBP if you discontinue advertising, and you can’t respond to reviews originating from your LSA review link. Maintaining a minimum 3.0 average review rating is essential for keeping your Local Service Ads active. If your Google Business Profile rating dips below 3.0, your ads will pause until the rating recovers. Explore strategies to increase your Google reviews and ensure your Google Business Profile and other directories remain accurate and up-to-date using this helpful free business listings grader.

5. Bidding and Budgeting: Embracing a Proactive Approach

It’s understandable for brands to be cautious with bids and budgets on unfamiliar marketing platforms. However, Local Service Ads, despite their reputation for affordability, are often subject to underbudgeting and conservative bidding. During campaign setup, you can opt for manual bidding per lead or utilize automated bidding. Choosing automated bidding with a limited budget frequently leads to ads under-serving or not serving at all. A general guideline is to allocate a budget two to three times your intended spending, as Google sometimes struggles to exhaust the full budget. For instance, if your target monthly expenditure is $5,000, set your budget to $15,000.

Despite a $10,000 budget allocation for this account, Google spent only $3,054. Furthermore, the maximum bid cap has been raised to $1,000. If you’re struggling to gain traction with automatic bidding, aggressive manual bids from competitors might be a factor. Consider exploring related markets as a potential solution. Given that you only pay for calls lasting two minutes or longer, or completed form submissions, your marketing budget tends to stretch further compared to traditional paid search, where you pay for every click. If your cost per lead is $50 and your monthly budget is $500, your target is 10 leads per month. Adjust this target based on your capacity.

6. Setting Realistic Business Hours: Aligning with Responsiveness

Conversion rates for LSAs and response times are closely intertwined. The faster you respond to leads, the higher your chances of securing the business. While Local Service Ads don’t factor response times directly into ad ranking, they learn which user interactions result in successful calls or form submissions.

Therefore, configure your LSA campaign to run exclusively during hours when you have adequate staff available to handle leads promptly. If you can’t provide 24/7 support, avoid running your campaign around the clock. This approach helps Google optimize budget allocation based on your availability.

7. Utilizing Lead Management: Marking and Archiving

Upon a successful conversion, mark the lead accordingly. Archive leads that aren’t a good fit. While some lead quality issues might stem from overly broad service offerings (e.g., offering rentals when you primarily handle sales), most discrepancies occur when the prospect’s needs don’t align with your services. Archiving such leads helps Google refine its targeting and budget allocation.

Embracing Google LSAs for Local Business Success

Local businesses can’t afford to overlook Local Service Ads in their marketing endeavors. Their ease of management and relatively straightforward performance optimization make them a valuable asset. By implementing these seven key tips, you can unlock the full potential of LSAs for your business:

1. Carefully consider whether an MCC or individual ad account best suits your needs.
2. Focus your targeting efforts on a maximum of three markets per LSA profile.
3. Proactively manage certification expiration dates and ensure profile images adhere to guidelines.
4. Prioritize maintaining a positive review profile.
5. Adopt a proactive budgeting approach, allocating two to three times your intended spending.
6. Align campaign running hours with your team’s availability for swift lead response.
7. Utilize lead management features effectively by marking successful conversions and archiving unsuitable leads.

Interested in leveraging LSAs for your business? Currently, the following industries are eligible:

• Acupuncturist
• Animal rescue
• Appliance repair services
• Bankruptcy lawyer services
• Business lawyer services
• Carpet cleaning services
• Carpenters
• Child care
• House cleaning services
• Contract lawyer services
• Criminal lawyer services
• Dance instructor
• Countertop services
• Disability lawyer services
• DUI lawyer services
• Electricians
• Estate lawyer services
• Family lawyer services
• Fencing services
• Financial planning services
• First aid training
• Flooring services
• Foundations services
• Garage door services
• General contractor
• Handyman
• Home inspector
• Home security
• Home theater
• HVAC (heating or air conditioning)
• Immigration lawyer services
• IP lawyer services
• Junk removal services
• Labor lawyer services
• Landscaping services
• Language instructor
• Lawn care services
• Lawyers
• Litigation lawyer services
• Locksmiths
• Malpractice lawyer services
• Moving services
• Personal injury lawyer services
• Personal trainer
• Pest control services
• Pet adoption
• Pet boarding
• Pet grooming
• Pet training
• Plumbers
• Pool cleaner
• Pool contractor
• Preschool
• Real estate lawyer
• Real estate services
• Roofers
• Sewage system
• Siding services
• Snow removal
• Tax services
• Traffic lawyer services
• Tree services
• Water damage services
• Weight loss service
• Window cleaning services
• Window repair services
• Yoga studio