Google Local Service Ads Explained

You want to connect with local customers who are in the market for the services you provide. You’ve probably spent some time optimizing your website. You may have paid for Google Ads. But if you’re not focusing on Google Local Service Ads, you’re missing out on the most highly qualified leads around.

What is a Google Local Service Ad? Why should you care? Keep reading to learn more.

What Are Google Local Service Ads?

We surveyed small business owners, and many of them didn’t know about Google Local Service Ads – so let’s start with the basics.

Google Local Service Ads are the ads that appear at the top of Google’s search engine results page when someone searches for a local service.

The business owners who know about digital marketing know that having an ad for their business appearing at the top of the Google SERP (Search Engine Results Page) is a huge advantage.

Google Local Service Ads aren’t available to everybody. A business needs to earn a spot based on its ratings. This is because Google guarantees the services of the companies whose ads are displayed.

Components of a Google Local Service Ad

Notice that Google Local Service Ads highlights reviews by displaying the average rating and the number of reviews available to read. Considering that nearly 9 out of 10 consumers rely on online reviews to make purchasing decisions, it’s impossible to put a dollar value on having a high review rating displayed at the top of the SERP.

When a prospective customer clicks on a Google Local Service Ad, they see additional information about the business, including:

  • The business phone number and address
  • The services provided
  • The hours of operation
  • The areas of service
  • Business highlights such as the BBB rating or awards received

Scrolling down allows people to see the Google My Business reviews. While people may check other review sites such as Yelp or Angie’s List, Google My Business reviews are the most trusted and viewed reviews online.

How Do Google Local Service Ads Compare with Organic Search?

One of the questions most frequently asked about Google ads has to do with their efficacy when compared to organic search. It’s a valid question.

It’s undeniable that earning a spot at the top of Google’s organic search results is a huge advantage. Research shows that the first three organic listings get the lion’s share of clicks. Here’s how it breaks down:

  • The #1 listing gets 28.5% of clicks
  • The #2 listing gets 15% of clicks
  • The #3 listing gets 11% of clicks

In total, the top three listings grab 54.5% of all clicks. By the time you get to the 10th spot, the listing gets only a 2.5% click-through rate. Companies on the second page are even lower – and most searchers never get that far.

You may have read that a lot of people skip right over the ads that appear at the top of Google – and that’s true, as far as it goes. However, Google Local Service Ads are different. Here’s why.

The first thing to note is that typical Google ads include a headline and what essentially amounts to a sales pitch, like this:

Ad ● ▼(555) 123-4567


     50% Off select styles of Carpet & Flooring, 50% Off Pad and Materials, 50% off Installation. Shop at Home. Next-Day install.  Quality floors. Financing available on Approved Credit.         After work appointment. Durable and long-lasting. Stain and Scratch-resistant.

               Hardwood Flooring ● Special Financing ● Vinyl Flooring ● Free In-Home Estimate

It’s obviously an ad – and just as many of us skip past commercials when we can, we also prefer to skip online ads when they are trying to sell us something. We like to do our own research.

What differentiates Google Local Service Ads from traditional ads is that they don’t look like ads. What they look like is a recommendation of a top-rated business. That makes them instantly more valuable and more trustworthy than regular ads in the eyes of consumers. They combine the benefits of advertising – most importantly, a spot at the very top of the SERP – with the benefits of organic search.

What Are the Differences Between Google Local Service Ads and Google Ads?

You probably already know how traditional Google Ads work. To have your ad displayed on the SERP, you must bid on your chosen keywords and beat out the other people (or at least most of them) who are bidding on the same words.

You must earn your way to a Google Local Service Ad, but there’s no bidding process. The other key differences are:

  • Google Ads are pay-per-click, and Google Local Service Ads are pay-per-lead. That means you pay only when a prospective customer contacts you via the ad.
  • Google Local Service Ads are Google Guaranteed, which means that Google will refund a customer’s money if they’re not satisfied.
  • Companies “rank” for Local Service Ads based on the number of customers they serve and their average review rating.

A Google Local Service Ad is a stamp of approval from Google. It is, therefore, more valuable than a traditional PPC (Pay Per Click) ad.

How to Get a Google Local Service Ad for Your Business

Let’s review the steps to get a Google Local Service Ad.

  1. Check your eligibility by going to Google’s local service homepage and clicking the Get Started button.
  2. Create your Local Ad Services profile, including your name, company name, the services you provide, and other relevant information. Be aware that you should list only the services for which you have licensure.
  3. Submit the required paperwork. Since Google is guaranteeing your work, you must submit copies of your licenses and other documentation.
  4. Complete the background check. Google conducts background checks on you and your employees. Google pays for the background checks, and the process is simple.
  5. Set your advertising budget. Once you’re confirmed, you’ll need to decide how many leads you’re prepared to pay for each week or month and submit that to Google.

Once you’ve completed the steps, your ad will appear if you rank against other verified service providers in your area.

If you can qualify for a Google Local Service Ad, we highly recommend taking advantage of their benefits. They offer an easy way to get qualified leads every day.

CMG can help you navigate your Digital Marketing Needs  Give us a call.