Octiv Digital
Display & Remarketing Ads Management

Why Google Local Service Ads is a Good Strategy for Small Businesses

by | Last updated Mar 7, 2024

What Are Google Local Service Ads?

Google Local Service Ads (LSAs) stand out as a revolutionary advertising platform specifically created for small businesses seeking to connect directly with local customers at the very moment they need the services offered. This distinctive approach to advertising transcends the traditional pay-per-click (PPC) model by emphasizing a pay-per-lead system, which aligns closely to secure genuine business opportunities over mere website traffic. If you’ve ever searched for a service yourself and have noticed a Google Guaranteed badge, that’s a local service ad.

Enhanced Features & Advantages of Local Service Ads

  • Prime Visibility: These ads are strategically placed at the top of Google search results, ensuring that businesses capture the attention of local customers precisely when they are searching for related services.
  • Trust and Credibility: The Google Guarantee badge, awarded to businesses that pass Google’s vetting process, serves as a mark of trust and reliability, encouraging potential customers to choose your services with confidence.
  • Cost-Effective Lead Generation: The pay-per-lead model is a game-changer, allowing businesses to invest in leads that have a higher likelihood of conversion rather than expending resources on clicks that may not result in tangible business.
  • Informative Business Profiles: Ads feature comprehensive business profiles using details from your Google Business Profile, including customer ratings and reviews, along with contact information, making it easier for customers to make informed decisions without having to leave the search results page.

What Businesses Can Use Local Service Ads?

Local service ads are a boon for service-oriented businesses aiming to enhance their local presence. This model is particularly effective for industries such as home services (like plumbing, electrical work, and HVAC services), professional services (including legal and accounting services), and personal services (such as tutoring and personal training).

Cost Considerations & Budget Management

The cost associated with local service ads can vary significantly based on factors like the type of business, its location, and the competitive landscape in that area. For example, a personal injury attorney should expect to pay more per lead versus a roofing contractor based on the type of business and the level of competition. Google’s bidding system plays a role in determining ad placement, but the flexibility to set a maximum weekly or monthly budget ensures that small businesses can maintain control over their advertising spend, optimizing visibility and lead generation within their financial comfort zone.

Local Service Ads Example


For example, one of our clients operating a pool repair business in Florida leverages LSAs to fill up the business’s appointment calendar for the month, then we simply reduce the budget to limit how many leads they’ll receive. The business sees a steady flow of customers while spending ad dollars that make the most sense. When they are ready to scale and grow, we increase the budget for local ads and resume the lead flow.

Integrating LSAs Into Your Marketing Strategy

Incorporating local service ads into your broader digital marketing strategy can significantly amplify your business’s online presence and customer engagement. By synergizing with other marketing efforts like local SEO, social media marketing, display ads, and email marketing campaigns, you can ensure a comprehensive approach to capturing a wide audience across various stages of the customer journey. Consider LSAs as one component of a larger, well-rounded strategy.

Getting Started with Local Service Ads

Starting out with local service ads is more than a marketing move; it’s a declaration of your presence and a commitment to serving your community. This platform isn’t just about reaching out; it’s about inviting people and creating a space where your local community knows they will find reliability, quality, and service just a click away. Are you ready to transition from being a choice to being the choice in your local market?

Launching Your Local Service Ads Campaign

Getting started with Google Local Service Ads involves a thorough verification process that includes background checks, license and insurance verification, and adherence to Google’s service standards. Post-approval, businesses can craft their profiles, designate their service areas, and fine-tune their ad preferences to best match their target audience. There can be some back and forth to the process of getting approved for the ads, but we work with you every step of the way.

Reach out anytime to get started with these ads and improve your lead flow.


About the Author

Jeff Romero

Founder of Octiv Digital, University of Utah alumni, drummer and digital marketer for local businesses, e-commerce organizations and more. I write on the Octiv Digital blog about SEO, paid search, web development and analytics.


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