Google Ads and Google Local Services Ads (LSAs) are two of the most popular and effective advertising tools available. These two platforms cater to different types of businesses and serve distinct purposes. So how do you know which one is right for your business? Understanding their differences and determining which is best for you can be the key to optimizing the ad-spend portion of your marketing budget.
Here we’ll explore what Google Ads and Google Local Services Ads are, the businesses they work best for, the differences between the two, and how they relate to your Google Business Profile. We’ll also answer some of the most frequently asked questions about each option, so you can make an informed decision about which one to choose.
What are Google Ads?
Google Ads, formerly known as Google AdWords, is an advertising platform developed by Google that allows businesses to create and display ads on Google’s search engine results pages (SERPs), and their partner platforms – YouTube, Google Display Network, and other partner sites. With Google Ads, businesses can target users based on specific keywords, demographics, interests, and behaviors, helping them reach a broader audience and drive traffic to their website.
There are various types of ads that businesses can run through Google Ads, including:
- Search Ads: Text-based ads that appear on Google’s search results when users search for specific keywords.
- Display Ads: Image or video ads that appear on websites within the Google Display Network.
- Video Ads: Ads that appear before or during YouTube videos.
- Shopping Ads: Product-based ads that display images, prices, and descriptions in Google search results.
- App Ads: Ads that encourage users to download an app from the Google Play or App Store.
With Google Ads, businesses can bid on keywords relevant to their products or services, and ads are displayed based on the relevancy of those keywords. This means that when someone searches for a product or service, businesses that have bid on those keywords have the opportunity to appear at the top of the search results, often above organic listings.
Which businesses do Google Ads work best for?
Google Ads is a versatile platform, but in our personal experience, some industries are getting a little crowded with regular Google Ads. This means that even if you’re paying for ads, you still may not show up in the first position (or even the top 5) if there are competitors bidding more than you. Since you aren’t able to see how much your competitors are bidding for the top spots, your success may depend on how much you’re willing to spend and how many other companies are running ads targeting your service area. At Wheel Horse Digital, we’ve found that Google Ads work particularly well for:
- E-commerce Stores: Businesses that sell physical or digital products can benefit from Google Ads, especially through Shopping Ads, which display product images and prices directly in the search results.
- Service Providers: If you offer services like legal advice, consulting, or healthcare, Google Ads can help you target specific keywords related to your industry.
- B2B Companies: Businesses offering products or services to other businesses can use Google Ads to target professionals within specific industries.
- Local Businesses: While Local Services Ads are more tailored for local businesses, Google Ads can still be effective for targeting specific geographic areas with the right keywords.
- Branding and Awareness Campaigns: Google Ads is ideal for businesses looking to increase their brand visibility and drive traffic to their website.
Google Ads is a good choice for businesses that are looking to drive conversions, whether that’s purchases, leads, or traffic. The platform gives businesses the flexibility to adjust their campaigns, targeting, and budgets as needed, and the platform has good depth in their analytics to be able to measure your KPI’s effectively.
What are Google Local Services Ads?
Google Local Services Ads (LSAs) are a special form of advertising designed specifically for local service-based businesses. Unlike traditional Google Ads, which appear on Google’s search results, LSAs appear at the very top of search results and are intended to connect users with local professionals offering services in areas like plumbing, electrical work, home cleaning, and legal services.
Local Services Ads are different from Google Ads in several key ways. For example, LSAs are designed to drive leads directly by offering users the option to either call or message the business. These ads also feature a “Google Guaranteed” or “Google Screened” badge, which is awarded to businesses that pass Google’s background checks and licensing verification processes.
The ad format for LSAs is simple and straightforward, typically displaying the business name, ratings, location, and a clear call to action (e.g., “Call now” or “Request a quote”). The main goal of LSAs is to help local service providers connect with nearby customers in need of their services.
Which businesses do Google Local Services Ads work best for?
Google Local Services Ads are specifically designed for local service businesses. These ads work best for businesses that:
- Provide Local Services: Businesses like plumbers, electricians, landscapers, house cleaners, locksmiths, and other local service providers can benefit from LSAs. If you offer a service that customers typically need on a one-time or emergency basis, LSAs can help you connect with them.
- Operate in Specific Geographic Areas: LSAs are ideal for businesses that serve a defined geographic area and want to attract customers within that location.
- Are Looking for Qualified Leads: Unlike Google Ads, which charge based on clicks, LSAs charge businesses based on the number of leads they receive, making it easier to track ROI.
Google Local Services Ads work best for businesses that rely on leads rather than website traffic or brand visibility. These ads provide a direct way for potential customers to contact service providers, making them highly effective for generating high-quality leads.
You’ll also notice that these LSA’s often show up above regular Google Ads – so depending on your industry, they may be a better choice for your business.
It’s important to do a thorough competitor analysis before deciding, to help make the best use of your ad spend.
What are the biggest differences between Google Local Services Ads and Google Ads?
While both Google Ads and Google Local Services Ads can help businesses grow their online presence, there are significant differences between the two platforms. Let’s take a closer look:
Cost Structure
- Google Ads: Google Ads operates on a pay-per-click (PPC) or cost-per-thousand impressions (CPM) basis, meaning you pay each time someone clicks on your ad or views it (in the case of display ads). The cost per click is typically a lot lower than the cost per lead you’ll pay with Local Services Ads
- Local Services Ads: Google Local Services Ads operates on a pay-per-lead (PPL) basis, meaning businesses are only charged when they receive a qualified lead (e.g., a phone call or a message) through the ad.
Ad Placement
- Google Ads: Ads appear on Google search results, YouTube, Google Display Network, and partner sites. They can appear on both desktop and mobile devices, depending on the campaign settings.
- Local Services Ads: LSAs appear at the top of Google search results, directly above standard Google Ads and organic listings. These ads are designed specifically for local service businesses.
Targeting
- Google Ads: Google Ads offers extensive targeting options, including keyword targeting, demographic targeting, location targeting, and interest-based targeting.
- Local Services Ads: LSAs are more focused on geographic targeting, showing ads to users who search for specific local services within a defined location.
Ad Format
- Google Ads: Google Ads offers a variety of ad formats, including search ads, display ads, video ads, and shopping ads, which are suitable for a wide range of business types.
- Local Services Ads: LSAs have a more simplified ad format, usually displaying business name, ratings, location, and a call-to-action button (such as “Call Now”).
Business Profile and Verification
- Google Ads: Google Ads does not always require businesses to undergo verification before running ads, though it’s important to have a website and other assets set up.
- Local Services Ads: Google Local Services Ads requires businesses to undergo a thorough verification process, including background checks, license verification, and proof of insurance for some industries.
How does your Google Business profile factor in?
Your Google Business Profile (formerly Google My Business) is an essential element of both Google Ads and Google Local Services Ads. For Google Ads, having a verified Google Business Profile can help improve local search visibility, allowing you to show up in local searches related to your business. It also ensures that your business information (like address, phone number, and hours) is accurate, which is important for both users and Google.
For Local Services Ads, your Google Business Profile plays an even more critical role. Google verifies your business through the profile before you can run LSAs. This includes background checks, license verification, and other steps to ensure that your business meets Google’s standards. A well-maintained Google Business Profile can help improve your credibility and trustworthiness, which is essential for securing the “Google Guaranteed” or “Google Screened” badge.
Frequently Asked Questions
What is the difference between PPC and LSA?
- PPC (Pay-Per-Click): A type of advertising where businesses pay each time someone clicks on their ad. Google Ads typically uses this model, and it applies to a wide range of ad formats.
- LSA (Local Services Ads): A type of advertising where businesses pay only when they receive a qualified lead (e.g., a phone call or message). LSAs are ideal for local service businesses that want to attract leads.
Are Google Local Ads worth it?
Yes, Google Local Services Ads can be very worthwhile for service-based businesses looking to generate high-quality leads in their local area. Since you only pay for leads (rather than clicks or impressions), LSAs provide a more cost-effective way to attract customers. However, success with LSAs depends on the type of business and the competitiveness of your local market. It’s also worth working with a professional when you’re just getting started with running any type of ad to make sure you’re not wasting money with ads that target the wrong audience or have poor messaging.
Which is better: Google Ads vs. Local Service Ads?
The answer depends on your business goals. If you’re a local service provider looking for leads, Google Local Services Ads is likely the better choice. If you’re running an e-commerce store or need broader exposure for your brand, Google Ads is more versatile and suitable. Both can be effective, but it’s crucial to select the right platform based on your specific needs.
Final Thoughts
Both Google Ads and Google Local Services Ads have their unique advantages and are excellent tools for businesses looking to improve their online visibility. By understanding the differences and choosing the right platform for your business, you can effectively reach your target audience and achieve your marketing goals. Whether you’re running a local service business or an e-commerce store, leveraging the power of Google’s advertising platforms can significantly impact your growth.
