Google Local Service Ads: The Secret Tool for Small Businesses

Have you ever noticed businesses with a Google Guaranteed badge?

If yes, then you have seen how Google Local Service Ads function. These badges show the most trusted local service-based businesses near you.

If your answer is no, here is your comprehensive Google Local Service Ads guide. 

What are Google Local Service Ads?

Google LSAs are paid ads that help small businesses connect with local customers. These ads appear at the top of Google search results when a user searches for any specific service. They look like this –  

As shown above, Google shows small businesses’ contact details, working hours, and ratings. 

Even trusted businesses are rewarded with a Google Guaranteed Badge that enhances service credibility and quality. However, a detailed screening and verification process is involved in receiving the badge. 

Don’t Worry! If you want to grow your local business, check the list to determine whether your business is eligible.

Google Local Service Ads Categories

Recently in October 2024, Google announced changes affecting small businesses in Europe, the Middle East, Africa, and some in the U.S. and Canada. Starting November 21, the business should have a Google Business Profile to run an ad on Google. 

The goal is to reduce fraud, but small businesses might face issues. If a business’s Google Business Profile name and address don’t match their ad information, their ads could be stopped.

Therefore, before starting with the categories, be aware of your industry, business details, industrial policies, and location. 

The list below describes the industries eligible for Google Local Service Ads Categories.

• Training Schools (Example – Pre-schools, First-aid training, Driving School)
• Healthcare (Example – Dentist, Dermatology, Orthodontist)
• Wellness (Example – Yoga, Massage, Personal Training)
• Business (Example – Real Estate, Lawyers, Accounting)
• Beauty (Example – Hair & Nail Salon, Aesthetician)
• Automotive (Example – Mechanics, Tire Shop, Installers)
• Home Services (Example – Electrician, Plumbing, House Cleaning, Flooring)
• Care (Example – Child Care, Pet Adoption and Training)

This List doesn’t end over here. Google regularly updates with more business services to give shout-outs to small businesses.

As Google LSA rules the internet, you might feel confused with another similar term – Google Ads. However, both these terms are completely different. 

Let us clear your confusion by stating the major differences between both.

Google Local Service Ads VS Google Ads 

Looking at the table above, it’s clear that Google Local Services Ads (LSAs) and Google Ads serve very different needs, especially for local businesses.

If you’re a service-based business focused on building trust and getting direct leads without the hassle of a complex setup, LSAs might be your best bet. That “Google Guaranteed” badge isn’t just for show—it’s a trust signal that helps you stand out instantly.

On the flip side, Google Ads gives you the reins. Want to customize your messaging, fine-tune your targeting, or scale across different locations and services? That’s where Google Ads really shines.

It all comes down to your goals, budget, and how hands-on you want to be with your ad strategy.

How are Google Local Service Ads beneficial for small businesses?

For small businesses such as plumbers or electricians, Google LSAs are Boone. The mentioned list below shows the ultimate benefits of Google Local Service Ads for small businesses –

• You pay for Leads only, Not Clicks.

Unlike Google Ads, the business only has to pay for Leads, not for clicks. Small Businesses can easily work on a low budget and get the most out of potential customers. 

As per the new update, unqualified leads are automatically refunded to the business. This includes requests for services you don’t offer, calls outside your service area, wrong numbers, spam, sales pitches, or incorrect contact details.

• You can build Trust and Credibility in your business

Imagine a searcher looking for a pet grooming service nearby. Among the top results on Google LSAs, he finds the first few results beneficial and trustworthy for pet grooming.

Do you know, what made him trust the first few results? The Google Guaranteed Badge assures the searcher of trustfulness and positive business reviews. 

• You can Boost the Top-of-Page Visibility of your Website.

Whether your Pay-per-Click Ads are ranking or not, Google LSAs are even higher than these results. This can generate more leads and visibility on search engines.

The earlier you create a Google Business Profile, the stronger your listing will be. You will gain reviews and trust, which will improve your rankings over time.

• Your Business can be included in Voice Search Responses.

Voice searching for a service such as “AC Repairing shop near me” is much easier and time-saving than typing your detailed query in the search engine.

As per Think with Google, 20% of searches in the Google App are now done by voice. Google LSAs ensure your business is found on over 400 million devices using Google Assistant.

• Your Business is easy to set up and Manage in Google LSAs.

There is no hard and fast rule. A small business can easily set up and manage weekly budgets on their Ads.

The business does not need keywords or ads to run Local Business Ads. They automatically appear when customers search relevant terms, using your business profile to create the ad.

This is why you should never underestimate the power of Advertising. 

However, Google LSAs do not end here. It is not only about creating the profile and generating leads. It is about consistency to lead in top search results.

If you want to start with Google LSAs, here is your guide for growing your local business reach.

Getting Started with Google Local Service Ads 

Google LSAs involve a six-step process to create your business profile. Here is your step-by-step guide –

1. 📝 Sign Up & Check Eligibility

Before anything else, you’ll need to see if your business qualifies for LSAs in your location.

• Visit the Google Local Services Ads homepage
• Enter your business category (like plumber, locksmith, house cleaner) and zip code
• Google will instantly tell you whether LSAs are available for your service in your area

Tip: Only certain service categories are eligible — think home services, real estate, law, financial services, etc.

2. Create Your Business Account/ Profile

Click “Get Started” and enter all your business details, such as your Business name, Location, Service areas, Services offered, and Business hours. 

Be clear about the services you offer and the areas you want leads from, as you’ll be paying for any matched leads.

Once your eligibility is confirmed, you’ll be prompted to set up your LSA profile.

You’ll need to provide:

• Business name and owner name
• Phone number and email
• Service areas (zip codes or cities) where you operate
• Hours of operation
• Types of services offered (choose from a list provided by Google)
• Business license and insurance information (if applicable)

📌 Why this matters: This profile is what potential customers will see in the ad. Make it accurate, complete, and trustworthy!

3. Complete Verification Process

Google needs a verification process to ensure your business is genuine and trustworthy.

• Background checks

Third-party agencies like Pinkerton and Evident, partnered by Google, are working on background checks of businesses. It includes the qualification check and ensures the business has a trusted reputation.

• License and Insurance Verification

As mentioned above, the reward of the Google Guaranteed Badge needs proof that your business is licensed and insured. 

• Google Guaranteed Badge or Screened Badge

Depending upon your industry, you will receive the Google Guaranteed badge or the Google Screened badge after successful verification by Google and its third-party agencies.

4. Set Up Your Weekly Budget

You can set your average weekly budget per your industry type and business. It depends on how much you are willing to spend on leads.

Accordingly, Google uses a pay-per-lead model based on your budget and local competition. It charges only for valid leads received.

5. 🗣️ Collect Customer Reviews

Customer reviews are one of the biggest ranking factors for LSAs. The more high-quality reviews you have, the more likely you are to show up higher in results.

• Ask happy clients to leave reviews on your Google Business Profile
• Respond to reviews to show engagement
• Encourage detailed reviews that mention the services provided
  

⭐ Pro Tip: LSAs allow you to request reviews directly from the dashboard after completion of service.

6. Monitor Leads and Rankings

After completing the verification process, you can monitor and refine your ad campaign performance based on the results.

We are ready to start with the Google Local Service Ads. 

We know you might be considering the budget and expenses related to Google LSAs. So here is your answer to understand this concept of Google Local Service Ads cost.

How much does Google Local Service Ads cost?

Google LSAs work upon the Pay-per-click Approach. Here are some factors that can vary for the cost – 

• Industry 

Competitive services such as home or legal services have higher costs.

• Location 

Geographic areas can impact the cost per lead.

• Lead Type 

For example, if you need an electrician urgently, this may have higher lead costs than the routine service work.

Overall, a lead can range from $5 to $50+, depending upon the above factors. You can set a weekly budget to manage costs and align your ad spending with your business goals.

Google LSAs offer great support to small businesses and customers. But do you know B2B sectors can also enjoy the benefits of Google LSAs?

Let us look at the working of Google Local Service Ads as a B2B Model.

Google Local Service Ads as a B2B Model

Google LSA can be used as a powerful tool for connecting businesses. 

For example, an IT support firm or commercial cleaning company can use Google LSAs to target nearby offices or stores. LSAs boost visibility and generate quality leads for B2B growth.

As a B2B Model, Google LSAs have several advantages – 

• LSAs help businesses to connect directly with other businesses searching for specific services in their nearby area.
• Businesses tend to choose trustworthy service providers effectively by LSAs.
• B2B providers pay only for direct leads like calls or messages, offering better cost efficiency.
• Google Local Service Ads as a B2B Model can be a good source of brand awareness and lead generation.

This makes Google LSAs so powerful in both the B2B and B2C sectors.

Here are some secret tips for your business that can boost the Google Local Service Ads world.

Tips to Improve Your Google Local Service Ads Performance

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TL;DR

Hence, if you are looking for growth opportunities for your small business, then Google Local Service Ads can be your best companion for the whole journey. Results like quality leads, brand awareness, top rankings, positive reviews, and much more are on your way to beat the marketplace.

Want to grow your business with the best Google advertising strategies? Contact Digital Guider today.

FAQs – Google Local Service Ads (LSA) 

Q1. Do I need a Google Business Profile to run Local Service Ads?

A1. Yes. From November 21, 2024, a verified Google Business Profile is required to run Google Local Service Ads. 

Q2. How long does it take to get verified for Google Local Service Ads?

A2. Typically, it can take a few days to a few weeks, especially if background checks or license validations are involved.

Q3. What happens if I receive a lead from Google LSA that’s irrelevant or spammy?

A3. Unqualified leads (like wrong numbers, spam, or off-service requests) are eligible for a refund. You can report these directly in your account.

Q4. Can I pause my Google Local Service Ads campaign anytime?

A4. Absolutely. You can pause, resume, or adjust your ad campaign and weekly budget anytime from your account dashboard.

Q5. Do I need to manage keywords or create ads manually in Google LSA?

A5. Not at all. Google LSAs don’t require keywords or custom ad copies. 

Q6. Can I track how well my Local Service Ads are doing?

A6. Yes. Google provides a performance dashboard where you can track leads, call details, budget spend, and rankings.

Q7. Are LSAs shown on mobile voice searches, too?

A7. Yes! LSAs are integrated into Google Assistant voice searches, helping your business appear when users ask for local services.

Q8. What if my business doesn’t fall under any of the eligible categories mentioned in Google LSA?

A8. If your business isn’t currently supported, don’t worry. You can sign up for updates or periodically check eligibility

Q9. Can I reply to customer inquiries directly through the Google Local Service Ads platform?

A9. Yes, you can respond to calls, messages, or booking requests directly through the Google dashboard.

Q10. Can I dispute a lead that I feel was unfairly charged by Local Service Ads?

A10. Yes, you can request a lead refund for invalid or low-quality leads.