Navigating the world of online advertising can be overwhelming, especially when deciding between platforms like Google Ads and Local Service Ads (LSAs). As a Google Ads manager at Imprint Digital, I frequently assist clients in making informed decisions that align with their business goals. This article aims to clarify the differences between Google Ads and LSAs, highlighting the benefits of each to help you choose the best option for your marketing strategy.
The Short Answer: What’s the Difference Between Google Ads and Local Service Ads?
Google Ads charge per click and can appear anywhere on the search results page, while Local Service Ads charge per lead and always appear at the top of the page, providing a Google Guarantee for added trust.
What are Google Ads?
Google Ads, previously known as Google AdWords, is an expansive advertising platform that offers businesses and marketers numerous options to attract their next customers. While Google Ads offers multiple ways of advertising, for the sake of timeliness, in this blog post, we will describe Google Ads from the standpoint of its most bread-and-butter advertising option: pay-per-click advertising.
Pay-per-click (PPC) advertising is a method of advertising that enables businesses to bid on keywords and/or phrases that, after a user searches with said keywords, display their ads on Google’s search engine results pages (SERP) and/or across its advertising network. This system allows advertisers to target specific keywords that potential customers might use when searching for products or services.
Example: A business owner sells cat hats (yes, a hat for a feline) and they want their ads to appear when a user searches for “hat for cold-headed cat” on Google. If the business owner began bidding on “cat hat” correctly, their ad would appear after this search query; landing on the SERP as a sponsored result.
How Google Ads Work
Generally speaking, when you create a Google Ads campaign, you select keywords relevant to your business and set a bid for how much you’re willing to pay for each click. Your ads can then appear when users search for these keywords. Payment is only made when someone clicks on your ad, making it a cost-effective way to drive targeted traffic to your website.
Different Types of Google Ads
- Search Ads: These text ads appear at the top and bottom of Google search results, offering a direct way to reach users actively searching for specific terms.
- Display Ads: Visual ads that appear across Google’s network of over two million websites and apps, helping to build brand awareness.
- Shopping Ads: Product listings that include images, prices, and merchant information, ideal for e-commerce businesses.
- Video Ads: Ads shown on YouTube and other video partners, perfect for engaging users with compelling content.
Advantages
- Broad Reach: Google Ads can target users globally or locally, depending on the campaign settings, providing a flexible approach to reaching potential customers.
- Flexibility in Targeting: You can target ads based on a variety of criteria, including location, demographics, interests, and online behaviors, allowing for highly customized campaigns.
- Detailed Analytics: Google Ads provides robust tools to track and analyze ad performance, offering insights into clicks, impressions, conversions, and more, enabling continuous optimization.
What are Local Service Ads?
Local Service Ads (LSAs) are a specialized type of ad designed specifically for service-based businesses. These ads appear at the very top of Google search results and are charged on a pay-per-lead basis, meaning businesses only pay when they receive a direct inquiry through the ad.
How LSAs Work
To get started with LSAs, businesses must undergo a verification process that includes background checks and insurance verification. Once verified, LSAs prominently display business information, reviews, and the Google Guarantee badge, which enhances trust and credibility. These ads are shown to users searching for specific services in a defined local area, such as “plumbers near me.”
Industries Eligible for LSAs
LSAs are available for various service-based industries, including:
- Home services (e.g., plumbers, electricians, locksmiths)
- Professional services (e.g., lawyers, financial planners)
- Healthcare services (e.g., dentists, therapists)
Advantages
- Pay Per Lead: Unlike Google Ads, LSAs charge only for actual leads, such as phone calls or appointment bookings, making them cost-efficient and ensuring that the advertising budget is spent on genuine inquiries.
- Guaranteed Top Placement: LSAs always appear at the top of search results, ensuring maximum visibility and increasing the likelihood of attracting potential customers.
- Google Guarantee Badge: This badge adds a layer of trust, as Google backs the services offered by the business, which can significantly boost conversion rates.
Key Differences between Google Ads and Local Service Ads
Understanding the differences between Google Ads and Local Service Ads (LSAs) is crucial for making an informed decision on which platform best suits your business needs. Here’s a detailed comparison to help clarify these differences:
Cost Structure
- Google Ads (PPC): Advertisers pay each time a user clicks on their ad, regardless of whether the click results in a sale or conversion. This model requires careful budget management and bid strategies to ensure cost-effectiveness.
- Local Service Ads (PPL): Advertisers pay per lead, meaning costs are incurred only when a potential customer contacts the business through the ad. This can result in more predictable budgeting and a higher return on investment (ROI).
Ad Placement
- Google Ads: Ads can appear at the top or bottom of search results, on YouTube, and across Google’s Display Network. Placement is determined by the ad’s relevance and the advertiser’s bid.
- Local Service Ads: LSAs always appear at the top of Google search results, above other ads and organic listings, ensuring prime visibility and attracting more clicks.
Targeting and Reach
- Google Ads: Offers extensive targeting options based on keywords, location, demographics, interests, and behaviors. This allows for highly customized campaigns that can reach a broad or specific audience.
- Local Service Ads: Primarily targets local searches and service areas. This focus on geographic targeting makes LSAs ideal for businesses serving specific local communities.
Verification and Trust
- Google Ads: No special verification is required, but businesses can enhance their ads with extensions that display additional information, such as reviews and contact details.
- Local Service Ads: Requires a verification process that includes background checks and insurance verification. LSAs feature the Google Guarantee badge, which adds a layer of credibility and trust for potential customers.
Setup and Maintenance
- Google Ads: Requires ongoing management to optimize bids, keywords, and ad creatives. It’s a dynamic platform that demands regular adjustments to maintain performance and effectiveness.
- Local Service Ads: Simpler setup with fewer variables to manage. Once verified, businesses mainly focus on responding to leads and maintaining high service standards to attract more positive reviews.
Ad Copy Requirements
- Google Ads: Emphasizes creative ad copy to attract clicks. Advertisers need compelling headlines, descriptions, and calls-to-action (CTAs) to engage users effectively.
- Local Service Ads: Less emphasis on creative copy. Ads display business information, ratings, and reviews, which are automatically pulled from the business profile.
Choosing the Right Ad Type for Your Business
Deciding between Google Ads and Local Service Ads depends on various factors related to your business goals, industry, and budget. Here are key considerations to help you choose the right platform:
Business Goals: Evaluate what you aim to achieve with your advertising. If your goal is broad brand awareness and reaching a wide audience, Google Ads might be more suitable. Its diverse ad formats and extensive reach can help in building brand recognition. On the other hand, if your objective is to generate direct leads and conversions from local customers, and are in an accepted industry, LSAs are ideal due to their focus on local searches and pay-per-lead model.
Budget Constraints: Consider your budget and how you want to allocate your advertising spend. Google Ads require ongoing budget management and can be costly in competitive markets due to the pay-per-click model. LSAs offer a more predictable cost structure, as you pay only for leads. This can be more budget-friendly for businesses looking to ensure every dollar spent results in a potential customer inquiry.
Industry and Service Area: Determine if your business qualifies for LSAs. Industries such as home services, healthcare, and professional services often benefit from LSAs. If your business is eligible, LSAs can be a powerful tool for reaching local customers. If not, Google Ads offers versatile options to target your desired audience, regardless of industry.
Competitiveness of Keywords vs. Local Search Volume: Analyze the competitiveness of your target keywords. High competition in Google Ads can drive up costs and make it challenging to achieve a good ROI. LSAs, focusing on local search volume, may offer a more cost-effective alternative if there is sufficient local demand for your services. Conducting keyword research and assessing local search trends can help you decide which platform will be more effective.
Example Scenarios:
Example 1: A small law firm looking to attract clients in their local area might find LSAs more effective due to the Google Guarantee and top placement. This ensures their ads are seen by users searching for legal services nearby, leading to higher quality leads.
Example 2: An e-commerce store aiming for broader reach and brand awareness would benefit more from Google Ads. They can leverage various ad formats to target users across different stages of the buying journey, from awareness to conversion.
Google Ads vs. Local Service Ads: Final Thoughts
Google Ads and Local Service Ads each offer unique advantages that can significantly benefit businesses. Google Ads provide extensive reach and detailed targeting options, ideal for brand awareness and broad campaigns. Local Service Ads, with their cost-per-lead model and top-of-page placement, are perfect for service-based businesses looking to generate local leads.
Evaluate your marketing needs and consider implementing a balanced approach using both Google Ads and LSAs. This dual strategy can enhance your visibility, trust, and lead generation, ultimately driving business growth.
Reach out to Imprint Digital today to develop a tailored advertising strategy that leverages the strengths of both platforms.