How to Maximize Your ROI With Google Local Service Ads

Have you been tempted to try out Google Local Service Ads? Or maybe you’ve started up with LSAs before, but you quit because the return on investment didn’t work for you.

Let’s take a look at what Google Local Service Ads are, see if they are right for your business, learn how to max out your ROI, and plan out how to create a steady stream of leads and jobs for your business.

We’ve been talking about Local Service Ads since they were in beta testing in San Francisco a decade ago. Now, we’re talking about them again today to help contractors to adjust their strategies, avoid common LSA mistakes, and get the most out of their marketing and advertising investments.

What Are Google Local Service Ads?

Google Local Services Ads are pay-per-lead ads that help local service businesses collect leads directly through phone calls and message requests on Google.

This is the same platform that has the green “Google Guaranteed” badge - that helps to highlight contractors that have completed background checks.

Google puts its money where its mouth is when it comes to “Google Guaranteed” contractors. If a homeowner uses a verified contractor and is not satisfied with the work, they may get reimbursed by Google for some or all of the amount paid for services. For that reason, people are more likely to trust a contractor on the LSA platform.

These are the ads that show up for specific types of searches. They show up at the absolute very top of search engine results pages - Above other ads, above the map pack, above the ten blue links.

How are LSAs Different From Google Ads?

LSAs are “Pay-Per-Lead” - you owe Google money when they deliver you an interested lead, complete with name and contact information.

With LSAs - you’re paying for a 100% ready to go lead.

Other Google Ads are “Pay-Per-Click” - you owe Google money when your ad gets clicked on. That sends traffic to your landing page, which then has to convert that traffic so that they call you or complete a web form to become a fully realized lead.

With Google Ads - You’re paying for the opportunity to convert an interested party into a lead.

Getting Started with Local Service Ads

The first important step for Google Local Service Ads is the account setup process. This includes eligibility confirmation, Google Business Profile verification, and a variety of license, insurance, and background checks.

Who Can Run Google Local Service Ads?

There is a specific segment of contractors and home service providers that can run Google Local Service Ads.

While you can see the whole list of accepted contractor types in Google’s documentation, it covers a wide variety of pros, including remodelers, electricians, GCs, handyman services, HVAC contractors, lawn and landscapers, locksmiths, painters, pest control, plumbers, roofers, and the like.

Why Do I Need To Complete A Background Check?

To get Google Guaranteed status, your business will need to complete background checks.

These include criminal background checks for business owners and an assessment of the company’s fitness - as based on judgments or liens held against contractors.

Business that are considered “urgent” industries - including but not limited to electricians, HVACs, locksmiths, plumbers, and solar panel contractors - require an identity check and criminal history for basically every person from your company that may show up on site to complete services. That includes temporary workers and independent contractors, not just employees.

Common Mistakes That Kill LSA ROI

There are things that you can do (or not do) that will negatively impact your ad placement and your lead costs. A few common ones include…

• Not updating business information - When your GBP and LSA accounts don’t match, that can cause suspensions & ranking drops. You can also lose your Google Guaranteed status if you don’t complete background checks for new employees that interact directly with customers. Companies with the Google Guaranteed badge will always outrank others that do not have it.
• Ignoring negative reviews - Bad reviews hurt your placement and potential for future user conversions.
• Slow response times - People want help fast. If you’re slow to respond, you’ll get lower lead volume.
• Not marking leads as booked - Lead management within the LSA system is important. Accurate and timely lead status management is important to showing Google that your leads turn into completed jobs.
• Failing to monitor performance - Like most of your marketing, LSAs are not set-it-and-forget-it. You need to actively monitor and maintain your accounts for the best return.

How to Maximize Your ROI with LSAs

You can overcome these common pitfalls and problems with some active management. It takes an understanding of how LSA ranking works and proactive steps to max out your return on investment.

Get More & Better Reviews

Reviews impact your Local Service Ads ranking.

“Star ratings and number of reviews affect how your business is ranked within Local Services Ads.”
– Google Local Services Help support documentation

Aside from any review management system you may already have in place, Google LSAs (in the US and Canada specifically) have an option within the Local Service Ads platform to mark a lead as booked and then immediately ask for the review afterwards.

It is still necessary to make the ask directly to your customer - and then let them know that they’ll be getting an email from Google with the next steps for leaving you your next 5-star review.

The Right Budget & Bidding Strategy

There are a variety of options for bidding strategy, you need to find the right one that balances out your ability to invest in your advertising and the pace of delivering leads that make sense to you.

Google has a calculator to estimate your LSA spending so you can get an idea of a good potential budget.

For example, for an electrician in Pensacola, Florida - getting 40 leads over the course of the month may cost just shy of one thousand dollars.

Generally speaking start with a solid budget and you can adjust your costs up-and-down as you see results.

Fast Lead Response Time & Management

You always need to prioritize lead response time, but in the case of Local Service Ads it is even more important.

Google wants LSAs to be fast and reliable for customers, so they continue to come back for more. As such, Google rewards contractors who move quickly to satisfy customers.

“It's highly recommended that you respond to leads as soon as they come in. Having a consistently fast response time could improve your ad’s ranking on search and increase your ability to receive leads.”
– Manage response time section of “Manage leads and jobs” Google Local Services Help support documentation

Managing your lead status within the LSA platform is important in communicating with Google that your leads are converting into completed bookings. Make sure you are updating lead status details in a timely manner.

Providing Lead Feedback To Help Shape The Refund System

In the past, Google Local Service Ads users had to manually dispute lead quality or relevancy to request refunds for bad leads.

As of July 2024, this process has moved entirely to an AI automated process.

But that doesn’t mean you should sit back and hope that bad leads get refunded properly. You can still provide feedback through the LSA system via the “Lead Feedback Survey” to help Google’s machine learning processes understand what leads are not up to expectations. Google identifies that this is a big part of helping to understand how your account operates…

“Your feedback in the Lead Feedback Survey is crucial in helping us understand your preferences, so that we may do our best to send you more of the leads that are best suited to your business.”
– Help us improve section of “About Automated Local Services Ads lead credits” Google Local Services Help support documentation

Accurate, High Qualilty LSA Profile Management

Making sure your LSA matches your Google Business Profile, that you have high-quality images, and that your profile is well-optimized with the type of content that helps to influence users is absolutely essential.

Perhaps one of the most direct statements in all of the Local Services Help documentation - something Google has definitively said that can help you to maximize your Local Service Ads investment - is this snippet about Profile quality…

“Higher quality profiles, including those with images, may rank higher and may also pay lower costs per lead.”
– “About ad rankings” Google Local Services Help support documentation

That demonstrates that a strong foundation, as developed by a well-established initial Google Local Service Ad account setup that is properly managed over time, can help you rank higher and reduce your costs at the same time.

So, Can You DIY LSAs?

While it is possible, setting up your own Google Local Service Ad accounts is a time-consuming process, especially for those “urgent industry” home service companies.

Beyond that, unless you have a dedicated office staff, it can be difficult to stay on top of every lead status update, quality check, and bid strategy review.

So, if you need help setting up or maintaining your Google Local Service Ads account to maximize your ROI - the pros at Footbridge Media are already ready to help. We now offer LSA account set up and Local Services Ads Management for home service providers.

About Chris Lonergan

Chris Lonergan has over 12 years of contractor marketing experience with Footbridge Media. With a background in web design, print design, content creation, and online marketing, Chris is focused on providing quality marketing and business solutions in the construction and service industries - helping small business owners to more efficiently manage their companies and grow their operations.

Chris Lonergan has previously contributed to and/or been featured in PM Magazine (Plumbing & Mechanical | Contractors x Engineers), theNEWS (ACHR - Air Conditioning | Heating | Refrigeration), Service Roundtable's blog, inPAINT Magazine, the SMB Marketing Agency Show, and the Green Industry Podcast. Chris is also a past SGI/CertainPath breakout session presenter.

About Chris Lonergan