Local Services Ads vs. Google Ads

Paid advertising is a must-have for any business that wants to expand their reach and scale their business. When you take a paid approach to your marketing initiatives, you can produce a significant ROI that positively impacts your bottom line.

While exploring your options, you’ve likely run into two different ad types: Local Services Ads and Google Ads. Both ad types have advantages and disadvantages, so you’ll want to weigh your pros and cons to decide which type will have the highest ROI for your company.

We put together a list of the benefits and differences of both types so you can decide which are the best for your business. Here is everything you need to know about Local Services Ads vs. Google Ads.

What are Local Services Ads?

Local Services Ads are a type of ad offered by Google that local businesses can use to target prospects in a specific location. These ads appear at the top of the search engine results page when web users make a local search for a product or service in their area. Google Local Services Ads are designed to help you increase your online visibility and help you stay connected to your community.

What are Google Ads?

Local Services Ads are just one type of advertising approach that Google offers. If you’d like to flesh out your strategy and grow your business outside your community, you may use Google’s suite of advertising tools.

Google offers everything from shopping to text and image ads. Each advertising type has a different purpose and placement. When building out a paid media strategy, you may add a mix of Local Services Ads and Google Ads, depending on your goals and needs.

The Benefits of Local Services Ads

There are many different brands and businesses that can benefit from incorporating Local Services Ads into their strategy. Whether you’re a nail salon, HVAC, or a restaurant, with the right keywords and strategic approach, you can get more worthwhile leads through the doors of your business.

Pay Per Lead Model

With Local Services Ads, you only pay for each lead you receive. You can tie an email or a phone number to your ads. Your business will only get charged for every text message, email, voicemail, or phone call you receive from the ads. These leads typically have a higher value than pay-per-click leads. This also means the cost per lead can be significantly higher than the average PPC. The average pay-per-lead is typically around $5 to $100, depending on your industry and location.

Earn a Google Guarantee Badges

Unlike traditional Google Ads, businesses that want to use Local Services Ads must complete a lengthy verification process. Businesses that are approved to use Local Services Ads receive a Google Guarantee badge. This badge can increase your credibility online and give you the upper hand against competitors.

Prime Placement

Local Services Ads always appear in the same place, at the top of the service results page. This is a prime placement that is sure to catch your prospect’s attention.

Optimized For Mobile Devices

All local search ads are optimized for mobile devices, so you don’t need to limit your marketing to desktop users. This is crucial because roughly 55% of web traffic comes from a mobile device.

Strategic Local Targeting

With the Local Services Ads, you can geotarget individuals and use keywords. For example, Google will help you reach individuals in Los Angeles looking for a plumber while also targeting keyword queries that are written like: “Plumber in Los Angeles.”

This will help you maximize your potential and ensure your ads are only being shown to individuals that your services would be relevant for.

Simple and Easy to Setup and Track

These ads have a user-friendly interface and can easily be set up, optimized, and tracked in one place. You don’t need to be familiar with the rest of the Google Ads platform to get these ads set up and running.

The Benefits of Google Ads

Local Services Ads are a great option for businesses that provide services in one area, but they aren’t beneficial for all businesses. If you’re an eCommerce or an online business, you may find more luck with other types of Google Ads.

Here’s why:

Pay-Per-Click Model

Most Google Ads are set up on a pay-per-click model. This means you pay for every click you receive on your ad. The average cost-per-click is $1 to $2. This can be an extremely cost-effective paid ads approach for many businesses.

No Verification Process

Unlike Local Services Ads, there is no verification process for businesses that want to get set up with Google Ads. Any business can easily create its own ads in a few simple steps.

Broader Targeting

With Google Ads, you don’t need to limit yourself to local targeting. While you can still include local targeting in your strategy, you don’t need to limit yourself.

Different Ad Types

Google Ads have various ad types you can choose from. The most popular options include search, display, discovery, and Gmail ads. While with local search ads, brands are limited to only the top of the Google search results.

Enhance Your Paid Ads Strategy

When deciding which is best for your business, you’ll want to consider your target audience and the products or services you offer. Local Services Ads are a more cost-effective solution that can generate a high ROI if you want to reach a niche audience in one specific location. While Google Ads may be more beneficial for an E-Commerce who can target a broader audience.

At Townsquare Interactive, we have hands-on experience helping businesses of every size fine-tune their approach to their paid advertising strategy. Our team can help you pick and choose which ad format and placement will have the highest ROI and help you develop a results-driven strategy. Click the button below to get started.