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Lance Matthews • January 1, 2021

Google Local Services Ads FAQ's: How Local Service Ads Fit with Google Ads

Can a business do Google Ads and Google Local Services ads at the same time?

Yes. A local business does not have to pick one or the other. Both ad formats typically show in search results at the same time. By doing both, businesses can show in Local Services Ads, Google Ads, Google My Business, and Organically all on the first page of search engine results.


Can I control which keywords I target in Local Services Ads?

No. There are job types that Google has determined for each business category. You simply select the various job types and specify your service area. You are not limited to how many areas you can choose to serve. Google determines which keywords are relevant for those job types and your ad will appear based upon the service areas and job types selected. You cannot pick keywords you want your ad to show for, and you cannot add negative keywords to prevent your ad for showing for keywords you do not want to target. By selecting job types instead of picking keywords and adding negative keywords, you will show up for searches directly related to the services you offer. Additionally, if you receive a lead for a job type that you haven’t selected you can dispute that lead and Google will not charge you for it.


Do I still need to run Google Search Ads once I start Google Local Services Ads?

Yes. This will vary depending on several factors, including: competition, budget and the amount of leads you want. From our experience in different verticals, Local Services Ads is absolutely not a replacement for Google Ads in terms of lead quantity. Even when prioritizing the budget to LSA first over Google Ads (which is recommended because it’s cost per lead instead of cost per click), we have seen some businesses only get a fraction of the leads compared to what they can get in Google Ads. In some cases, we have seen LSA make up only 25%-35% of overall leads that came from Google Ads. We’ve also seen a budget increase was necessary for LSA, specifically in the second half of 2020.


The goal is to maximize your LSA spend monthly, since it will likely be the lowest cost per lead of any advertising you do. Since Google will break your monthly budget down to a weekly spend cap, it’s best to test budget increases early on to see what the monthly max might be. For qualified, competitive business categories we’re seeing typical budgets in the $1,000-$2,000/month range. It also doesn’t hurt to set a higher budget early on because you won’t be charged for any unspent money. This will allow your business to see how many qualified leads Google is sending you on average per month.


Can’t I just stick with Google Ads only?

Yes. However, there are several reasons why a business should be in LSA if it’s available to them:

  1. The LSA ad unit shows up at the very top of the first Google Search Results page and subsequent pages.
  2. The cost per lead is very good. (Typically around half the CPL of Google Ads.)
  3. It doesn’t cost anything to join. You only pay for the leads.
  4. All calls from your Local Services Ads are recorded, and you can listen to them in the Local Services dashboard. If you’re a business owner that hasn’t ever listened to how your staff is handling calls, this is a great opportunity to find out. This can help you increase your closing percentage and improve your customer service.
  5. You can dispute invalid leads, and potentially get credited for the charge incurred for that lead.
  6. You can pause your ad at any time. When your ad is paused, the “Google Guarantee” badge is no longer present on your listing, and you will not be charged for leads. Your placement in the Local Services ad unit will drop below any paid listings but will still show up.


How Do I Get Started?

Contact us and we will walk you through the entire approval process. Once you are approved as a Google Guaranteed Business, we will begin running your Google Local Services Ads. You can reach us directly at (651) 335-7093 or by email at info@theoryzmedia.com. Connect with us on Facebook at Theory Z Media.

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