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Generating local leads is essential for any business. When it comes to drawing in new people, the Google search engine can be a great companion. 

The condition is that you must know how to use it without a fault.

A good way to attract people is through local service ads. People using search engines know what they want. 

When your business is relevant to their search, your ad will pop up in the search results as ads.

By getting insights into how the ads work and knowing the difference between Local Service Ads vs. Google ads, you can choose the right platform.

So, scroll down to generate leads effectively.

Learn More: Facebook Ads Library: Making Data-Driven Decisions 

What Are Local Service Ads?

A definition post explaining what are local service adsGoogle offers a unique advertising option called Local Service Ads (LSAs) that is intended to facilitate local consumer connections for businesses providing services.

When potential clients look for your services, your business will be prominently featured at the top of the search results. 

With the local service ads, you only have to pay when a customer contacts you via the advertisement because they work on a pay-per-lead basis. 

One major benefit of Local Service Ads is the Google Guaranteed label, which validates your company and increases confidence and trust.

Thus, they are a great option for location-specific, affordable lead-generation companies. Local Service Ads are especially helpful for service-oriented businesses when acquiring local clients is essential. 

Local service ads appear on desktop, tablet, and mobile searches; their reach extends beyond standard search ads.

Local Service Ads are displayed when Google Assistant responds to pertinent voice search requests. The Assistant asks about the searcher’s work type and location to ensure a good fit between the advertiser and the searcher.

Local Service Ads are made expressly to target local clients and enhance local companies’ reputations. You can choose from a list of services you offer, and when people search for such services, your ad may come up at the top of the results.

For instance, if you offer 24-hour automobile repair services in Mississauga, your advertisement is more likely to be seen by residents of Mississauga than by an automobile repair service within the south-central part of Ontario.

Google Local Service Ads list the business’s contact details, including address, phone number, hours of operation, and reviews.

Different Local Services Ad Types

Google Screened Ads: These are local pay-per-lead ads from companies that have cleared Google’s screening process.

Google Guaranteed Ads: These are pay-per-lead ads from companies that have cleared a Google background check partner’s Google Guarantee screening. You will see it mostly displayed in the businesses that offer home services.

If you want to focus on local SEO, here are the best practices for it.

What Are Google Ads?

A definition post explaining what are Google AdsPPC ads on Google have been around for a while. Businesses can utilize these ads to enhance their brand visibility.

The process is a no-brainer, and you just need to follow these steps:

After creating a Google Ads account, select the ad campaigns you wish to run.

You choose the duration, the frequency, and any other information Google needs.

Instead of paying a large upfront advertising payment, you only pay a fee each time someone clicks on your ad.

A few PPC ads may also appear in the SERP’s sides, bottom, and middle sections. 

Related Blog: Google Ads Template: 9 Tips to Create Persuasive Ads

Key Benefits of Google Ads 

Keyword Targeting: Google Ads allows marketers to target particular keywords, making them appear in search results for pertinent inquiries.

Different Ad Forms: To provide them more freedom in presenting their message, advertisers can select from various forms, including text, picture, and video ads.

Advanced Targeting Options: Google AdWords enables targeting audiences based on geography, language, and device.

Measurable Results: Advertisers may use comprehensive analytics to monitor the results of their ads, such as clicks, impressions, and conversions.

If you want to know how to run a successful Google ad campaign, our blog explains the mechanism behind it.

Now that you understand these two let’s quickly jump to the comparison of Local Service Ads Vs. Google Ads.

Local Service Ads Vs. Google Ads: Which One Is Right For You 

An infographic explaining the difference between local service ads vs. Google AdsIn the digital marketing world, both local service ads and Google ads are considered great tools for distinct reasons.

So, in the following section, let’s look at the factors that draw a line of distinction between Local Service Ads Vs. Google Ads.

1. Bidding Model 

A noteworthy distinction is how advertisers remunerate for Local Service Ads and Google Ads. 

Local Service Ads employ a pay-per-lead basis, whereas Google Ads use a pay-per-click (PPC) one. 

Advertisers do not pay until a potential consumer contacts them as a result of the ad. 

This can be helpful for companies looking to create leads without paying for clicks that may not result in a sale.

2. Placement Within the Search Results

Local Service Ads are displayed above the search results section, while Google Ads are displayed at the top of the results page. 

These advertisements, which display tiny rectangles just below the search bar, provide basic details about your company.

Your Local Services Ads may be more noticeable than Google Ads when Google chooses to display them.

3. Spreading Awareness

Local Service Ads (LSAs) are intended to assist nearby companies in becoming more visible in their community. 

When a user searches for one, Local Service Ads will show up above organic search results and Google Ads. 

This can help companies reach potential clients who might not have found them otherwise and provide them with a competitive advantage over rivals.

Additionally, Local Service Ads Canada enables companies to focus on particular geographic regions, which is advantageous for companies that exclusively cater to particular cities or neighborhoods.

4. Price Of Google Ads & Local Service Ads 

In Google Ads, the typical cost per click is between $1 and $4 on the Search Network. On the Display Network, it is less than a dollar.

However, industry, current market trends, keywords, and client lifestyle all affect Google AdWords costs. 

While certain pricey keywords in Google Ads and Bing Ads can cost you $50 or more per click, some Google Ads only cost about $1 on the search network.

For each new customer inquiry, you should budget between $10 and $225 for Local Service Ads, with an average cost of roughly $23.

Notably, Local Service Ads are among the priciest ad formats. Given that they provide advertisers with high-quality leads, they are more expensive than Google Ads. 

You can use Google’s cost estimator tool to get an accurate estimate of the cost of Google Local Service advertisements. 

One advantage of this ad is that you may adjust your budget at any moment by adding more money based on the number of leads you desire each week. 

5. Keyword Selection 

The primary distinction between Local Service Ads vs. Google Ads is that the former requires you to identify relevant keywords that closely correspond to the search intent of your target audience. 

To bring customers to your website, these terms should be relevant to your business and directly address customer queries.

But if you use Local Services Ads, Google takes care of this. Simply tell Google what kind of business you run and what you sell, and it will determine which keywords will direct customers to your website. 

This implies, however, that you will have less control over your ad and will be able to gather less information from your target market.

Furthermore, Google Ads offers a broader range of keyword options. Your keyword research can include many topics, from the specific to the generic.

6. Assessing Performance

Businesses must measure the success of their advertising initiatives in order to calculate their marketing return on investment (MROI). 

Businesses can monitor the effectiveness of their campaigns using Google Ads using a variety of measures, such as cost per click (CPC), conversion rate, and click-through rate (CTR).

On the other hand, Local Service Ads provide companies with fewer KPIs to monitor. 

Nevertheless, companies can access a lead tracking dashboard where they can view the quantity of leads produced and the cost per lead (CPL). 

7. Affordability 

Local Service Ads vs. Google Ads differ in cost-effectiveness from business to business.

For companies that depend on local clients, Local Service Ads may be a more economical choice in terms of cost. 

This is so that organizations can more successfully contact their intended audience. Local Service Ads are made to target clients in a certain geographic area.

In addition, in terms of cost per lead (CPL), Local Service Ads may be more economical than Google AdWords. 

Businesses using Google Ads should budget between $50 and $100 per lead, while those using Local Service Ads should budget between $15 and $25.

LSAs can be a more affordable choice for companies primarily serving local clients. Conversely, Google Ads may be more cost-effective for companies aiming to reach a larger audience.

8. Ad Accessibility

Local Service Ads are not available for every business and job type. Therefore, you need to check first if the from this list ads are available for your specific industry.

Your local business is most likely on this list. However, if LOcal Service ADs won’t apply to your company, using Google AdWords might be a better choice.

9. Ad Copy Creation

You must write your own ad copy for Google Ads, and the effectiveness of your advertising campaign may depend on how well you have curated the copy. 

Local service ads, on the other hand, streamline the advertising process by including important information.

10. Increasing Reputation with Reviews

Compelling reviews are essential for establishing credibility and trust with new clients.

Google My Business reviews are an essential component of the optimization process for LSAs. Your Local Service Ads will stand out from the competitors if it has a high rating and favorable reviews.

Reviews are still significant for Google Ads, although they are not given the same weight as LSAs. 

Nonetheless, a good rating and favorable reviews may still improve the performance of your Google Ads.

FAQs

Is it possible to budget for my local service ads?

Yes, you can decide how much you are willing to spend each week on leads by setting a weekly budget for your local service ads. Google will make an effort to balance the quantity of leads you receive with your budget.

How do leads come about via local service ads?

When potential clients click on your local service ads and get in touch with you by phone or message, you have leads for your business. There is a charge for every legitimate lead you obtain.

How do we optimize local service ads?

Optimizing Google Local Service Ads requires using high-quality photos and descriptions, tracking performance metrics, maintaining licenses, responding to reviews, updating business details, bidding competitively, adjusting your budget, and taking advantage of seasonal promotions.

What is the difference between local service ads and Google My Business?

Local Service Ads are pay-per-lead advertisements that appear at the top of Google search results and generate leads for service-based businesses. Verification is required.

Google My Business (GMB) is a free tool with optional sponsored advertisements that require verification. With the help of it, you can manage your online presence on Google Search and Maps.

Moreover, your business can emerge in local packs.

Is there a way to increase the ranking of local services ads?

Absolutely. The key ways to raise your ad ranking are maintaining excellent customer service, obtaining testimonials, making sure that business information is correct, and skillfully managing your budget.

In a Nutshell

Hopefully, after reading the article, I will find that there is no blurry line between Local Service Ads vs. Google Ads. 

Businesses should consider their target demographic, advertising budget, and marketing objectives when choosing between Google Ads and Local Service Ads. 

If you want your Google Ads and LSAs to work, The Dreams Agency can help. With our experience in the field, we can develop successful ad campaigns.