Stop Burning Money on Google Ads: Why LSAs Are the Smarter Choice

It’s 2024 and if you’re still overlooking local service ads, then your business is already falling behind!

Right now, over a dozen of your competitors are taking up Google searches for the right keywords in your industry. They are getting all the customer attention and beating you before you have a chance.

But the good news is: that could be you.

Local services ads to rule local service market

Those competitors aren’t waving some sort of magical wand; they only know how to use local service ads (LSAs) to make this possible. But with this article, you can beat most local businesses at this game and be the front and center for eager, ready-to-book customers.

Here, we’ll give you all you need to know about how LSAs work, why they are a game changer, and how to set up and optimize them to undoubtedly crush your competition. You can also checkout this video to see them in action.

Table of Contents

What Are Local Service Ads (LSAs)?

Google local services ads

LSAs are a special type of Google ad that connects local businesses with people who are actively looking for their services.

LSAs are different from regular Google Ads because they are made to directly meet local needs. That means you’ll find it really useful if you’re a dentist, plumber, lawyer, or other service provider.

LSAs are pay-per-lead rather than pay-per-click (PPC), meaning you only pay when you receive a real, qualified lead. This targeted approach not only saves businesses money but also makes sure they get real questions from people who are truly interested in potentially using your service, not just clicks.

How Do Local Service Ads Work?

When people search for services “near me” in their city, LSAs are right at the top of the local search results. Customers who see your ad can click or tap on it to call you or send you a message.

The Local Services Ads app and email will let you know when they get in touch. From that point on, it is up to you to turn the lead into a customer.

The best thing about them is that they come with extra perks that will help you build trust, like the green “Google Guaranteed” badge from Google, customer reviews, and star ratings. These all help establish credibility right away.

Here’s how LSAs differ from regular ads:

  • Priority Placement: LSAs appear above organic search results and other types of paid ads to give your business the topmost visibility.
  • Better Engagement: They show important business details like location, phone number, reviews, and business hours. This way, potential customers can quickly and easily learn about your services before even clicking.
  • Pay-Per-Lead: LSAs let businesses avoid click-based costs. So you only get charged for valid leads (if you sponsor it).

The Pay-Per-Lead Model

Google local services ads return 10X more than traditional lead flow

Why pay for clicks when you can pay for leads? The brilliance of LSAs lies in their pay-per-lead model. With LSAs, you only pay when you get a real lead, not for every random visitor. This gives you total control over your ad spend and guarantees a better return on investment (ROI).

If you run a service-based business, LSAs deliver actual inquiries from people ready to take action. So every dollar you invest goes toward landing real customers.

Google’s Automated System for Handling Low-Quality Leads

If you’re sick of wasting money on bad leads, then Google’s got you covered!

One of the biggest frustrations with online ads? Paying for low-quality leads. But with LSAs, Google’s automated system now flags and disputes invalid leads in real time.

This tool has been made open to all LSA users since July 2024. That means you can say goodbye to manually disputing bad leads.

Instead of charging you for unqualified leads, Google will give you credit automatically. You can even see which leads Google returned to your account by looking at their report on disputed leads. This gives you a clear picture of how much you’ve spent on ads.

However, if Google’s system fails to catch an invalid lead, you can still dispute it manually! This way, you’ll always be in charge and never have to pay for leads that don’t meet your needs.

At the end of the day, it’ save you time and money in the long run. It’s a better and easier way to make sure you only pay for real customers.

Google’s Automated System for Handling Low-Quality Leads

Benefits of LSAs

1. LSAs put your business right at the top!

With LSAs, your business isn’t just another search result; it becomes the first thing potential customers see.

This top spot is a big advantage, especially if you’re a small business owner, where being seen first can mean the difference between getting a customer and losing them to a competitor.

2. Pay only for real leads!

Are you sick of shelling out cash for clicks that don’t turn into sales? Let’s just say that you’re only charged when there’s genuine engagement, that is, when someone calls or sends you a message.

3. Google’s ‘Guaranteed’ badge boosts credibility!

Nothing builds trust faster than Google’s green “Google Guaranteed” badge. This badge means Google has verified your business, which sends a message of credibility and security to your potential customers.

Knowing that they’re dealing with a trusted service provider makes them more likely to reach out. The guarantee that Google backs your business can tip the scale in your favor, especially in competitive markets.

4. Simplify customer contact

One of the best parts about LSAs is how easy they make it for customers to contact you.

Prospective customers can call or text your business right from the ad with just one tap. Your potential customers will take a lot fewer steps between finding your website and getting in touch with you now that the process has been streamlined.

The easier it is to reach you, the faster you can close the deal.

5. Understand your customers better with valuable insights!

The first thing an LSA does is find new leads, but they also give you real insight. They allow you to see what demographic is responding to your ads, what services they’re interested in, and how they generally prefer to connect with you by keeping track of their interactions.

If you want to refine your marketing and make your services better fit the needs of your customers, these insights are like pure gold.

6. Flexible budgets, easy setup, and total control!

Worried about how to set up your ads? It’s easy with LSAs. In fact, it’s so fast and easy that you can start using them almost right away.

Also, if you have a flexible budget, you’ll find it easy to adjust how much you spend.

7. Target your neighborhood or the whole city

With LSAs, you can precisely target the places that are most relevant to your business.

They help you get in touch with local customers in places where you’re most wanted. You can also reach people in more than one area or zip code.

8. Mobile-first design

These days, everyone reaches for their cell phone when searching for services or handling everyday tasks.

How to See if a Local Service Ad Is Available

Before you start using LSAs, you should make sure they are available in your industry and area. Here’s how:

  1. Use Google’s LSA Availability Tool. Type in your business type and zip code to see if your area can have an LSA.
  2. Testing LSAs in Different Zip Codes: If your main zip code is not supported, try testing nearby zip codes to broaden your search. You can use this to widen your service area and capture leads from nearby locations to maximize your leads.

Setting Up Local Service Ads for Your Business

“Ready to get more leads now? Here’s how to set up LSAs in just a few key steps to bring in leads:

Google LSA set up page

1. Create an Account and Enter Business Details

Head to the Local Service Ads setup page, create an account, and fill in your basic business information.

2. Optimize Your Profile

Remember to keep it simple and strong. Simply put, you need to include the essentials, like the name of your business, its address, a phone number, and a detailed explanation of the services you offer. Do not stop until you have uploaded videos and photos that show off your work in the best way.

3. Encourage Customer Reviews

Positive reviews are like gold for your LSA rankings, so actively encourage satisfied customers to leave feedback.

4. Master the Art of Response

Set up instant notifications to quickly address customer inquiries. Since you don’t want to keep prospects waiting, you need to respond promptly, as that will improve your visibility and conversion rates. Then go further by showing genuine care and attention to each customer.

Understanding LSA Ranking Factors

Getting your local service ads (LSAs) to rank high on Google isn’t magic. You just have to manage a few key factors that can push your business to the top spot. Here’s what you need to pay attention to:

Local service ads ranking factors.

1. Customer Reviews and Ratings

The more positive reviews you get, the better!

2. Proximity to Searchers

LSAs are meant to connect customers with businesses in the area. You will rank higher if you are closer to the searcher. Just be sure that your location details are accurate!

3. Fast Response Time

Google really likes businesses that reply quickly. You’ll really be helping yourself by setting up real-time notifications. And since you get notifications, you can respond to inquiries as soon as they come in, which will in turn improve your ranking.

4. Complete Profile

Google rewards businesses that have complete profiles that list their services, hours, photos, and how to contact them.

How to Maximize ROI from Local Service Ads

To get the best return on your LSA investment, track and optimize performance metrics that matter:

  1. Track key performance metrics: Focus on cost per lead, conversion rate, and customer satisfaction. High ROI comes from closely monitoring these indicators and adjusting campaigns based on performance.
  2. Handling Disputes for Low-Quality Leads: If you receive unqualified leads, you can manually dispute them, ensuring you only pay for legitimate leads.
  3. Tips for Budgeting Your LSA Campaign: To get the most out of your advertising budget, plan how to spend it based on your service area, competition, and seasonal demand.

Bottom Line

You need local service ads more than anything else in your marketing arsenal if you want your business to stand out from the rest in 2024 and beyond. There’s almost no better way to rank high at the top of Google’s search results, especially if you don’t want to overspend.

The nicest thing about this is you are attracting “ready-to-purchase” prospects.

Think about it! You could be at the top of local search results, closing deals, and growing your business while your competitors are still spending money on old-fashioned ads or waiting months for SEO to work.

The question isn’t whether you should start using LSAs—the question is, how fast can you start?

Get ahead of your competitors now by setting up your profile and optimizing it for success. The earlier you start, the sooner you’ll see results.

For expert guidance in maximizing your LSA marketing efforts, your best and, we must say, only option is SEO Rank Media. Rest in the power of a supercharged team that lives and breathes LSAs!