Are Google Local Services Ads worth it for a small business?
The ads with the green check mark charge per lead, not per click. Here is how they work, what a lead tends to cost, and which businesses they suit.
Search for a plumber, electrician or cleaner in most US towns and the first thing you see is not a website. It is a row of businesses with photos, star ratings and a green check mark. Those are Google Local Services Ads, and the businesses in them are often getting the call before anyone scrolls down.
Here is how Google Local Services Ads work, what they tend to cost, and whether they are worth it for your business.
What are Google Local Services Ads?
Google Local Services Ads are ads for local service businesses that appear at the very top of Google search results, above the regular ads and the map. They show your business name, star rating, years in business and a Google Screened or Google Guaranteed badge, and you pay for each lead, such as a phone call or message, rather than for each click.
They are available for a long and growing list of service categories in the US, including home services such as plumbing, HVAC, roofing, electrical, cleaning and pest control, and professional services such as legal, accounting and real estate. You can check whether your trade qualifies on Google’s Local Services Ads site.
How much do Google Local Services Ads cost?
Google Local Services Ads typically cost somewhere between about 10 and 100 dollars or more per lead, depending on your trade and your area. Cleaning and handyman leads tend to sit at the low end, while roofing, HVAC, legal and other high value services sit at the high end. You set a weekly budget and Google spends it on leads.
Because you pay per lead rather than per click, the cost is easier to reason about than ordinary Google Ads. If a typical job is worth 600 dollars and you win one in four leads at 40 dollars each, each new customer costs you 160 dollars to win, which is easy to compare with what the job earns. Google also credits leads that were not genuine, such as spam or requests for a service you do not offer, and you can flag ones it misses.
What decides where you show up in Local Services Ads?
Where you show up in Local Services Ads depends mostly on how close you are to the customer, how many reviews you have and how good they are, how quickly you answer calls and messages, and whether your hours and service area are set up correctly. Your budget matters too, but a business with strong reviews that picks up the phone will usually beat a business that simply spends more.
That makes reviews the biggest lever you control. Our guide to getting more Google reviews without begging covers how to build them steadily.
How do you set up Local Services Ads yourself?
You can set up Local Services Ads yourself through Google’s Local Services Ads site in a few hours, plus a waiting period for checks. The steps are:
- Create a profile with your services, service area, hours and contact details.
- Pass Google’s screening, which can include business license checks, insurance documents and background checks, depending on your trade and state.
- Connect your Google Business Profile reviews, or collect reviews if you have few.
- Set a weekly budget, starting small enough to test for a month.
- Answer every call and message fast, and mark leads as booked in the app, because responsiveness feeds directly into your ranking.
The screening is the slowest part and can take anywhere from a few days to several weeks, so start early if you want ads running before a busy season.
Target Marketeer builds and runs marketing for small businesses nationwide, based in Greensboro, North Carolina, and for service trades these ads are often the quickest route to the phone ringing. If you would rather have the setup handled, our local ads setup runs $475, and our paid advertising page explains how we manage local ads over time.
Are Local Services Ads better than regular Google Ads?
Local Services Ads are usually the better starting point for service trades that qualify, because they sit higher on the page, carry a trust badge and charge only for leads. Regular Google Ads give you more control over keywords, wording and landing pages, and suit businesses that do not qualify for Local Services Ads or want to target specific jobs.
Many service businesses run both, with Local Services Ads bringing the steady calls and regular ads targeting the most profitable jobs. Our post on when local ads are worth it goes deeper on making paid ads pay.
Quick answers
Are Google Local Services Ads worth it?
They are usually worth it for service businesses with strong reviews, quick response times and jobs worth several times the cost of a lead. They are less useful if you cannot answer calls promptly, because missed calls hurt your ranking.
What is the difference between Google Guaranteed and Google Screened?
Google Guaranteed is the badge for home service businesses and comes with a Google backed guarantee for customers. Google Screened is the badge for professional services such as legal and financial firms. Both mean the business passed Google’s checks.
Do I need a website for Local Services Ads?
No. Local Services Ads run from your profile and reviews, so you can advertise without a website. A good website still helps, because many people look you up before they call.
How long does it take to get approved?
Approval usually takes from a few days to several weeks, depending on your trade, your state’s licensing and how quickly you send the documents Google asks for.
Check whether your trade qualifies today. If it does, the reviews and the response time are what will decide how well it works, and both are in your hands.
