growAp > Blog > Google Local Services Ads – is it worth investing in local ads?

Google Local Services Ads – is it worth investing in local ads?

google-local-services-ads-is-it-worth-investing-in-local-ads

Google Local Services Ads are paid ads that help users find local businesses offering selected services. What distinguishes these ads, how much do they cost, and do they really generate valuable leads? Learn everything about Google LSA and get ready for its launch in Poland!

What are Google Local Services Ads?

Google Local Services Ads (LSA) are a type of ad on Google that promotes local service providers. LSA ads appear at the very top of the search results page, above organic results and Google Ads. They include key business information such as the company name, reviews and ratings, phone number, and service area. Additionally, LSA ads often have special badges, increasing the company’s credibility and encouraging new customers to reach out.

Google Local Services Ads vs Google Ads

(Source: https://getjobber.com/academy/google-local-services-ads/)
There are two types of badges available within the service: Google Screened and Google Guaranteed.
Google Screened is a badge designed for specialists, freelancers, and professionals in fields like accounting, law, and real estate. As part of the program, Google verifies the licenses and qualifications of businesses, building trust among potential clients.

google local services ad - google screened result

(Screen: https://evolving-digital.com/resources/google-local-services-ads/)
Google Guaranteed is for businesses employing technicians, craftsmen, and tradespeople in fields such as plumbing, cleaning, locksmith services, etc. In this version, Google offers a “guarantee” that provides clients with a refund of up to a certain amount if they are unsatisfied with the service. The Google guarantee is a strong trust-building element and can effectively attract customers to choose a specific service provider.

google local services ads - google guaranteed result

(Screen: https://evolving-digital.com/resources/google-local-services-ads/)
Thanks to this mechanism, Google LSA has high conversion potential. It is particularly valuable for businesses managing extensive networks of Business Profiles, enabling effective promotion of multiple locations simultaneously, generating high-quality leads, and strengthening the company’s market position locally.

Key differences between Google Local Services Ads and Google Ads

CriteriaGoogle AdsGoogle Local Services Ads
Ad positionAppear below LSA ads. Also visible on Google partner sites like YouTube.Appear at the top of the search results page (SERP) if the user’s query relates to services and LSA ads are available in their location. Not shown on Google partner sites.
Payment modelYou choose keywords and pay per click (PPC), even if the potential client doesn’t make a purchase.You set a monthly budget and only pay for leads – when a user calls or sends a message through the LSA system.
Campaign targetingCan target various keywords, demographics, interests, etc.Targeting is limited to selected locations and services.
Campaign goalThe goal is to increase traffic to a selected website.The goal is to generate specific leads, such as a user calling or sending a message.
Business verificationNo verification or trust badge required – just a website.The service provider must go through a verification process to gain badges that enhance the business’s credibility.
Ad formatMore diverse and can include ad texts, links to sites, and extensions.Focused on contact details and reviews, often including photos of professionals.
Customization optionsLimited – Google automatically generates ads based on system data.Greater customization of the displayed content.
AvailabilityFor most businesses.Only for selected service sectors and countries.
Google badgesNone.Yes, available Google Screened and Google Guaranteed badges.
Client protectionNone.Clients receive a guarantee (up to $2,000 equivalent) if they book a service directly through LSA.

As you can see, Google LSA and Google Ads are two distinct advertising tools. The choice depends on your business goals and industry specifics.

Is Google LSA available in Poland?

Google Local Services Ads are not yet available in Poland. However, the experts at GrowAp know how to leverage the above mechanisms to effectively run ad campaigns for Business Profiles on Google Maps.

Why is the Google LSA service such an important advertising tool?

1. Local positioning allows you to reach many potential customers in the nearby area

LSA is designed for local promotion. Ads are shown to users in the immediate vicinity who are actively searching for the services your business offers. With precise geographic targeting, the likelihood of conversion increases. Managing multiple Business Profiles, Google LSA can promote each location in the right area, maximizing campaign efficiency.

    2. With pay-per-lead instead of pay-per-click, you only pay for real contacts

    Unlike traditional Google Ads, where you pay for every click, with LSA you only pay for leads. This means you incur costs only when a potential customer contacts your business via the ad (e.g., calls or sends a message). This payment model is particularly beneficial for service businesses, as it minimizes the risk of paying for ineffective clicks.

    3. Special Google badges enhance brand trust

    As mentioned earlier, LSA ads often feature special badges like Google Screened or Google Guaranteed. The badge gives clients confidence that using your company’s services is protected. It’s also a strong promotional argument. In the eyes of the client, a company with a “guarantee” or “screened” by Google is reliable and trustworthy.

    4. User-friendly interface and tracking tools help control spending

    Google LSA’s intuitive platform allows for easy ad creation and configuration, while built-in analytics tools enable continuous monitoring of campaign performance and optimization. You can track impressions, leads, and campaign costs to precisely measure its effectiveness and return on investment. Clear analytics show which locations generate the most leads.

      Cost-effectiveness of investing in Google LSA – example costs and ROI

      Investing in Google Local Services Ads can be more cost-effective than other forms of advertising, especially for companies focused on acquiring local clients.

      The cost of acquiring a lead can range from several dozen to several hundred PLN, depending on the competitiveness of your industry and targeted location. For example, an electrician in a small town will pay much less for a lead than a lawyer in the capital. Even within the same industry, there can be differences due to the scope of services or qualifications offered.

      Already in 2018, Tom Waddington’s analysis showed that the cost of acquiring a lead in the US ranged from $5 to $139, with an average of $23 (Source: https://tomwaddington.com/google-local-services-ads-cost-per-lead/). Since then, ad prices have risen, but the Google LSA system remains highly cost-effective.

      Of course, the most important indicator is not the cost of ads itself, but the ROI, or return on investment. After all, paid ad systems are primarily about results. An analysis conducted by WordStream in 2023 shows that Google LSA ads provide 10 times higher ROI than traditional lead generation methods.

      google local services ads yield 10x higher ROI than traditional real estate lead flow

      (Source: https://www.wordstream.com/blog/ws/2022/04/11/google-local-services-ads-tips)


      Is LSA more cost-effective than Google Ads?

      Compared to traditional Google Ads with CPC payments, switching to LSA often means lower customer acquisition costs, as businesses pay only for real interest in their services. Precise local targeting helps avoid costs from clicks by users outside the selected service area.

      Who are LSA ads most effective for?

      Google Local Services Ads are designed for businesses aiming to reach customers in a specific location. This is an excellent tool for local businesses wanting to compete with larger market players. It also works well for companies that rely on direct customer contact. LSA generates leads in the form of phone calls and messages, facilitating face-to-face relationships.

      How can Google LSA optimization support business growth?

      A successful Google LSA campaign, once the service becomes available in Poland, could become a powerful engine driving your business. By generating a steady stream of high-quality leads, LSA enables the increase of customer numbers and revenue. For companies managing multiple Business Profiles, the service allows for promoting all locations in a consistent and effective way, strengthening their local market position.

      Achieving satisfactory results depends on good campaign optimization, which includes the following steps:

      • Choosing between an MCK (manager account) for managing multiple locations or an individual ad account for a single Business Profile.
      • Targeting the offer to the right locations. Despite the lack of an official limit, the average number of service providers a geographic area can support is 35. Therefore, it’s important to select locations where potential customers are.
      • Setting a distant expiration date for documents required in the verification process. This especially applies to permits, licenses, and certificates that don’t require annual renewal.
      • Checking whether the profile picture meets Google’s requirements. In the case of a portrait photo, it should cover more than just the face.
      • Adjusting the bidding strategy to the budget. Many specialists recommend planning a budget 2-3 times larger than the amount you actually intend to spend.
      • Setting realistic service hours. If the business cannot handle leads 24/7, the campaign should not run all day long. This will prevent wasting the budget.
      • Successively marking successful leads and archiving those that do not match.

      Potential challenges and limitations of Google Local Services Ads

      Service availability

      Unfortunately, Google Local Services Ads are not yet available in all countries and industries. At the time of writing this article, LSA is not available in Poland. The current list of countries and industries can be found on Google’s support page.

      Although LSA is not yet available in Poland, GrowAp specialists use other Google tools for local promotion, such as ads in Google Maps. These allow businesses to reach users looking for services in their area, displaying prominently on the map and in search results.

      Once Google LSA is available in Poland, clients using the GrowAp service and app will be able to immediately leverage its benefits and strengthen their position in the local market.

      Industry limitations

      Even in countries where LSA is available, this service does not cover all industries. Google is gradually expanding the list of supported industries, but many businesses still cannot use LSA.

      Potential issues with the algorithm and lead management

      Like any tool based on algorithms, LSA can sometimes generate low-quality leads or incorrectly qualify inquiries. Therefore, it is important to regularly monitor leads and report issues to Google if necessary – preferably with the help of specialists. It should also be remembered that the LSA algorithm is constantly evolving, so regular campaign optimization is essential.

      Summary: Is it worth investing in Google LSA?

      Investing in Google Local Services Ads is definitely worthwhile, as it is a powerful tool for service companies looking to reach local customers. Although the service is not yet available in Poland, the experts at GrowAp have the knowledge and skills to effectively promote your business on Google Maps and other local channels.

      Contact us today to learn how we can help you increase your business’s visibility and gain more customers. Together, we will prepare a strategy that ensures your success in the local market – now and in the future, once Google LSA becomes available in Poland.

      ARE YOU INTERESTED?

      Get in touch with us!

      Test the application for free, receive a free audit of your brand's Google Business Profiles and write to us about the problems we can help you with. We will together select the growAp tool features that meet your needs and choose the type of cooperation that is best for you:

      1. profile management by our team
      and implementation of a tailor-made application

      1. profile management by our team
      and implementation of a tailor-made application

      /

      2. training of your team
      and implementation of the tailor-made application

      2. training of your team
      and implementation of the tailor-made application

      NEWSLETTER

      Sign up for the newsletter!

      Receive knowledge from us on how to run Google Business Profiles! Stay up to date with changes and trends on Google Maps. Take care of local SEO for your business.
      GrowAp - hurtowe zarządzanie profilami google