Local Service Ads vs Google Ads: Understanding the Differences

Local service ads and Google ads are two types of paid search advertising for businesses. While both aim to drive traffic and increase sales, they have significant differences in terms of their target audience, ad placement, bidding strategies, and cost-effectiveness.

Local service ads are designed specifically for local service businesses such as plumbers, electricians, and cleaners. They appear at the top of Google search results and Google Maps, and are designed to generate leads by connecting potential customers with local businesses. Local service ads are pay-per-lead, meaning businesses only pay when a customer contacts them through the ad.

On the other hand, Google Ads (formerly known as Google AdWords) is a more traditional form of online advertising that allows businesses to display ads on Google search results and other websites. Google Ads uses a pay-per-click (PPC) model, meaning businesses pay each time someone clicks on their ad. Unlike local service ads, Google Ads are not limited to local service businesses and can be used by any business that wants to advertise online.

Understanding Local Service Ads

Local Service Ads (LSAs) are a type of online advertising that Google offers to local businesses. They are designed to help businesses connect with customers in their area and generate leads. LSAs are different from Google Ads in several ways, including their pay-per-lead model and local focus.

Google Guarantee and Trust Signals

One of the key features of LSAs is the Google Guarantee badge. This badge is only awarded to businesses that have been screened and meet Google's standards for quality and trust. When a business is Google Guaranteed, it means that customers can trust that they will receive high-quality service and that their satisfaction is guaranteed. LSAs also include other trust signals, such as customer reviews and ratings, which can help businesses build credibility with potential customers.

Pay-Per-Lead Model

Another significant difference between LSAs and Google Ads is the way that advertisers pay for them. While Google Ads uses a pay-per-click (PPC) model, LSAs use a pay-per-lead model. This means that advertisers only pay when a potential customer contacts them through the ad. This can be beneficial for businesses that want to generate leads without having to pay for clicks that may not result in a sale.

Local Focus and Visibility

LSAs are designed to help local businesses increase their visibility in their local area. When a user searches for a local service, LSAs will appear at the top of the search results, above Google Ads and organic search results. This can give businesses a significant advantage over their competitors and help them reach potential customers who may not have found them otherwise. LSAs also allow businesses to target specific geographic areas, which can be helpful for businesses that only serve certain neighborhoods or cities.

In summary, LSAs are a powerful tool for local businesses that want to increase their visibility and generate leads. By leveraging Google's trust signals and pay-per-lead model, businesses can build credibility with potential customers and only pay for leads that have a higher chance of converting into sales. The local focus of LSAs also makes them an effective way to reach customers in a specific geographic area and compete with larger businesses that may have a broader reach.

Exploring Google Ads

Google Ads is an advertising platform that allows businesses to display their ads on Google's search engine results pages (SERPs) and other websites that are part of the Google Display Network. This platform is based on a pay-per-click (PPC) model, which means that advertisers only pay when someone clicks on their ad.

Keywords and PPC Campaigns

One of the main features of Google Ads is the ability to target specific keywords. Advertisers can choose which keywords they want to target and then create ads that will appear when someone searches for those keywords. This targeting method is called a PPC campaign.

PPC campaigns are a great way to reach potential customers who are actively searching for products or services related to your business. By targeting specific keywords, you can ensure that your ads are only shown to people who are likely to be interested in what you have to offer.

Targeting Options and Reach

In addition to targeting keywords, Google Ads also offers a range of other targeting options. For example, you can target specific locations, languages, devices, and even specific times of the day. This allows you to reach a very specific audience with your ads.

Google Ads has a massive reach, as it allows you to display your ads on Google's search engine results pages (SERPs) and other websites that are part of the Google Display Network. This means that you can potentially reach millions of people with your ads.

Ad Formats and Display

Google Ads offers a range of ad formats, including text ads, image ads, video ads, and shopping ads. Text ads are the most common type of ad and appear at the top and bottom of Google's search engine results pages (SERPs). Image ads and video ads are displayed on websites that are part of the Google Display Network.

Shopping ads are a type of ad that allows you to display your products directly in Google's search results. These ads include an image of the product, the price, and other relevant information.

Overall, Google Ads is a powerful advertising platform that offers a range of targeting options, ad formats, and display options. By using this platform, businesses can reach a very specific audience with their ads and potentially generate a lot of leads and sales.

Comparing Costs and ROI

When it comes to advertising, businesses need to consider their budget and the return on investment (ROI) they can expect. In this section, we will compare the costs and effectiveness of Google Ads and Local Service Ads (LSAs) to help businesses make an informed decision about which platform to use.

Budgeting and Bidding

Both Google Ads and LSAs require businesses to set a budget for their advertising campaigns. With Google Ads, businesses can choose between two bidding options: cost per click (CPC) and cost per impression (CPM). The CPC model charges businesses each time someone clicks on their ad, while the CPM model charges per 1,000 impressions.

On the other hand, LSAs use a cost-per-lead (CPL) model. This means that businesses only pay when a potential customer contacts them through the ad. While this model may seem more expensive, it can be more cost-effective for businesses that receive a high volume of leads.

Measuring Effectiveness

Measuring the effectiveness of advertising campaigns is crucial for businesses to determine their marketing return on investment (MROI). Google Ads provides businesses with a range of metrics to track the performance of their campaigns, including click-through rate (CTR), conversion rate, and cost per click (CPC).

LSAs, on the other hand, provide businesses with fewer metrics to track. However, LSAs do provide businesses with a lead tracking dashboard that allows them to see the number of leads generated and the cost per lead (CPL). This can be helpful for businesses to determine the effectiveness of their LSAs campaigns.

Cost-Effectiveness for Businesses

When it comes to cost-effectiveness, LSAs can be a more cost-effective option for businesses that rely on local customers. This is because LSAs are designed to target customers in a specific geographic location, which can help businesses reach their target audience more effectively.

Additionally, LSAs can be more cost-effective than Google Ads in terms of cost per lead (CPL). According to StructureM, businesses that use LSAs can expect to pay between $15 and $25 per lead, while businesses that use Google Ads can expect to pay between $50 and $100 per lead.

Overall, businesses should consider their advertising budget, target audience, and marketing goals when deciding between Google Ads and LSAs. While Google Ads can be a more cost-effective option for businesses that target a wider audience, LSAs can be a more cost-effective option for businesses that rely on local customers.

Optimizing for Target Audience

When it comes to optimizing ads for target audience, there are several factors to consider. In the case of local service ads (LSAs) vs Google Ads, there are some key differences in how to approach targeting.

Keyword Research and Selection

For both LSAs and Google Ads, keyword research and selection is crucial. However, there are some differences in how to approach this for LSAs. Since LSAs are focused on local services, it's important to choose keywords that are relevant to the local community. This means including location-specific phrases and long-tail keywords that are relevant to the local area.

For Google Ads, keyword research should be focused on finding the most relevant keywords for your business and industry. This includes both broad and specific keywords that will help you reach your target audience.

Proximity and Local Relevance

One of the main advantages of LSAs is their proximity targeting. LSAs are designed to help local businesses connect with customers in their local area. This means that proximity and local relevance are important factors to consider when optimizing LSAs.

For Google Ads, proximity targeting is still important, but it's not the only factor to consider. Google Ads also allows for targeting based on factors like demographics, interests, and behavior.

Building Credibility with Reviews

Reviews are an important factor in building credibility and trust with potential customers. For LSAs, Google My Business reviews are a crucial part of the optimization process. Having a high rating and positive reviews can help your LSA stand out from the competition.

For Google Ads, reviews are still important, but they are not as heavily weighted as they are for LSAs. However, having positive reviews and a high rating can still help your Google Ads perform better.

In summary, optimizing for target audience requires a tailored approach for both LSAs and Google Ads. For LSAs, proximity and local relevance are key, while for Google Ads, keyword research and targeting based on demographics, interests, and behavior are crucial. Building credibility through reviews is important for both types of ads, but is weighted more heavily for LSAs.

Strategic Considerations for Businesses

When it comes to advertising, businesses must determine their goals and select the right platform to achieve those goals. Local Service Ads and Google Ads are two different advertising approaches with their own pros and cons. In this section, we will explore some strategic considerations for businesses to keep in mind when deciding which platform to use.

Determining Advertising Goals

Before selecting an advertising platform, businesses must first determine their advertising goals. According to StructureM, Google Ads is a great option for businesses looking to generate leads and increase website traffic. On the other hand, Local Service Ads are ideal for businesses looking to generate phone calls and leads for local services. Therefore, businesses must choose the platform that aligns with their advertising goals.

Selecting the Right Platform

Once businesses have determined their advertising goals, they must select the right platform. According to Relentless Digital, businesses must consider their company needs and advertising tools when selecting an advertising platform. For example, if a business has a limited budget, Google Ads might be a better option as it allows businesses to set a daily budget. On the other hand, if a business is looking to generate phone calls, Local Service Ads might be a better option as it includes a click-to-call feature.

Pros and Cons of Each Advertising Approach

Both Local Service Ads and Google Ads have their own advantages and disadvantages. According to Smith.ai, Local Service Ads have a higher conversion rate as they are displayed at the top of the search results page. However, Google Ads offer more targeting options and allow businesses to display their ads on other websites. Therefore, businesses must weigh the pros and cons of each advertising approach before making a decision.

In summary, businesses must determine their advertising goals and select the right platform that aligns with those goals. They must also consider their company needs and advertising tools when selecting an advertising platform. Finally, businesses must weigh the pros and cons of each advertising approach before making a decision.