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Google Local Services Ads | 5 Quick Pros & Cons

Google Local Services Ads Example

Google Local Services Ads

Thinking about running Local Services Ads? Here are five pros, five cons and two recommendations. Quick, easy, to the point.

First, before we begin:

  • Unfamiliar with this new feature? You can read all about them here.

PROs

  1. LSAs show at the top of search results (above regular PPC ads, organic results, maps, you name it).
  2. Billed using a pay per lead model (as opposed to the standard pay per click model).
  3. On average, can result in lower CPAs (versus comparable PPC campaigns).
  4. Only three ads show (hopefully yours + two other competitors; three max).
  5. Great for beginners (create an account, set it and forget it)

CONs

  1. Highly automated. Very little ability to optimize. The best google ads agencies won’t particularly enjoy having their hands tied by being this limited.
  2. Leads tend to be less qualified. As one example, this is because of the inability for SEMs to do basic things like optimize bids, keywords, etc., and also because of…
  3. A lesser ability to optimize for the full customer journey. For example, legal marketing agencies know that a quality personal injury lead is less likely to see a Google ad and then immediately call that firm. Their case could potentially be worth millions of dollars. They want to spend time on the firm’s website. Read a bunch of pages. Look into the firm’s reviews. Check out other websites. The customer journey does not start and end with an impression an subsequent click-to-call. The customer journey just isn’t that simple.
  4. Impressions and ad rank are largely based on proximity. What if your office is in a major city but your target audience resides in the surrounding suburbs, for instance. That’d cause an issue.
  5. Extensive application process to become Google Screened. Frankly, it’s a bit of a pain to get approved for a ‘Google Screened’ badge. Plus, assuming you already have a Google Ads dashboard, requires a completely separate account and management dash.

Should You Use Google Local Services Ads Or Not?

If room in the budget, run both. DMG believes in page dominance & the potential to show up once more using an LSA provides a potential advantage for most advertisers.

Else, stick with regular paid search ads. The ability to optimize campaigns is much greater with traditional paid search accounts. Plus, for businesses with more expensive services, often outweighs the ability to simply “appear at the top.”

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