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Adrythm
Ads and paid search

Local Services Ads

LSA / Google Local Services Ads / Google Verified ads

In short

Local Services Ads are Google ads for local service providers that charge for each valid lead, such as an answered call, a message or a booking request. How quickly the business responds affects where the ad ranks, and Google will not credit a valid lead that arrives outside the listed business hours.

Google builds a Local Services profile from the hours, service area and services a business gives at sign-up, and the ad shows a preview of it. The ad carries a tracking number that forwards calls to the business phone. It also shows a star rating that includes Google Business Profile reviews, and a Google Verified badge once Google has verified the business.

The advertiser sets an average weekly budget. One week can run over it, but spend never passes a monthly max equal to the weekly budget times the average number of weeks in a month. After that the ad stops appearing for the rest of the month unless the budget changes. Billing runs through Google Ads, and a suspended Google Ads account suspends the Local Services ads as well.

Google's list of valid leads includes an answered call, a voicemail, and in the United States and Canada, a text, an email or a booking request. A missed call with no voicemail joins the list once the business returns it and speaks with the customer or leaves a voicemail. Lead prices vary by location, job type, lead type and bidding mode, and message leads usually cost less than phone leads.

Leads judged invalid or low quality at first contact are not charged. Charged leads are reassessed over time and may be credited automatically, but only in the United States and Canada, and never for health care or tax specialists. Google's examples of leads it will not credit include one received outside business hours and a customer who was researching prices.

Ads are ordered by an auction that weighs the bid against profile quality. Google says missed calls may hurt responsiveness, one input to how likely the ad is to produce a lead. Profile quality counts the rating, number of reviews, average response time, photos and verification checks, and higher quality profiles may also pay less per lead.

In practice

A roofer's ad produces 12 leads in a week: 8 answered calls, 2 messages and 2 missed calls with no voicemail. The roofer returns one missed call and leaves a voicemail, which puts it on Google's list of valid leads. One answered caller was only checking prices, and one message arrived at 9 p.m., after the listed hours. Google's examples say neither of those two will be credited. The second missed call was never returned, and missed calls may weaken the responsiveness that feeds ranking. The figures are a worked example.

Why it matters to you

With these ads the phone matters as much as the bid. A price check still counts toward the budget, and slow or missed replies may lower where the ad ranks. Google says turning on message and booking leads can increase the likelihood of receiving a lead during nights and weekends, when nobody is free to answer. A business with several locations serving the same area gets only its highest ranking ad shown for a search.

What to ask or check

  1. 01Do the business hours on your Local Services profile match the hours someone answers calls and messages?
  2. 02How many leads last month were missed calls, and how many of those did the business return?
  3. 03Which charged leads has the business flagged as poor quality in the feedback survey, and were any credited?
  4. 04Are message and booking leads switched on for your profile?

What people get wrong

That Local Services Ads charge only for leads that turn into jobs. Google charges for each valid lead, and its examples of leads it will not credit include a customer researching prices, a canceled booking and a customer who never answers the return call.

Red flags

  • Missed calls in the leads inbox that nobody at the business returned.
  • Listed business hours that are longer than the hours anyone answers the phone or messages.

Google Business Profile

A Google Business Profile is the free listing that puts your business in Google Maps and in the local results beside search. Google's rule for qualifying is narrower than most people expect: the business must make in-person contact with customers during its stated hours, so online only businesses do not qualify.

Call tracking

Call tracking replaces the phone number shown to a visitor with a substitute number that routes to your real one. Only calls dialed through that substitute are measured. Google assigns a forwarding number when call reporting is on, and Microsoft requires an ad group to have reached 10 clicks and 10 dollars of spend in 30 days.

Cost per click

Cost per click is what you pay each time someone clicks your ad. You set a maximum you are willing to pay, and the auction usually charges less: Google says advertisers are often charged less, sometimes much less, than that maximum. It is the unit your ad invoice is built from.

Smart Bidding

Smart Bidding sets a bid for every individual auction rather than per keyword. Google calls this auction-time bidding and says some of its signals are exclusive to it. Microsoft is blunt about the trade: with auto-bidding you can only set a bid at campaign level, and the model computes the rest.

Quality Score

Quality Score is a 1 to 10 diagnostic number reported against each keyword, estimating how relevant your ad, keyword and landing page are. Both Google and Microsoft state plainly that the score itself is not used in the auction. Ad quality does affect what you pay. The number in your account does not.

Conversion rate

Conversion rate is the share of ad clicks that turned into something you count as a result, like a phone call or a filled in form. Google works it out as conversions divided by ad interactions. Microsoft divides by clicks. The two are not the same number, so compare platforms carefully.

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