New Google Local Services Ads: Are they Worth the Hype?

New Google Local Services Ads: Are they Worth the Hype?


Are you like me and think “What the…?” when ads started appearing above the traditional paid search ads on Google? I decided to dig a little deeper to find out what the heck these ads are. Here I’ll explain what they are and walk you through how we got our ads back on top.

So, What are those Ads Showing up First in the SERP?

They’re called Local Services Ads, formerly known as Home Service Ads. They connect trusted service professionals with local users.

For instance, a use that experienced a roof-damaging hail storm can now easily find a credible, local roofing company the moment they hit the search button. Even better, the roofing company isn’t paying for impressions, clicks or unqualified leads. Sounds too good to be true, right? I promise, it’s real!

How do I Pay for the Ads?

Unlike Google Ads, you don’t pay per click. You pay per Lead. Did your jaw just drop? Pick it back up and keep reading. Local Service advertisers are only charged for valid leads. If you receive a lead that is spam, someone calling about employment, a telemarketer, you can dispute the charge for credit.

Do I Qualify for Local Services Ads?

The first step is to find out if you’re business eligible for Google Local Services Ads. Google made it very easy to check your Local Services Ads eligibility. All you have to do is input your state, zip and job category and confirm insurance information to immediately find out if you are able to create an ad account. Easy peasy.

Note: Don’t panic if your job type or region isn’t supported yet. Google continues to expand this offering.

You’re Eligible! Now What?

Create your business profile. It’s important to fill this out accurately because the more specific you are, the more targeted your ads will be. This info will determine what locations are targeted, the specific type of lead you want, business hours and the phone number where leads can reach you. You’ll also be able to enter your weekly budget in the profile.

Google also requires license and insurance details and a background check through Pinkteron. There is no cost for the background check and Google is doing its due diligence and rewarding those who pass their screening and qualification process with the Google Guarantee badge.
If you’re backed by the Google Guarantee badge, you’ll notice a little green check mark next to your ad. It signifies to potential customers that you are trusted by Google. If a customer isn’t satisfied with the work you provided, Google may issue a refund up to $2,000.

But Does it Work?

As far as we’ve tested, yes.

Rocket Clicks has one client who started using this service in April 2020. Our ads are back on top, their phone is ringing and the initial results speak for themselves. While our Client, in the home improvement vertical has an average cost-per-lead (CPL) of $225 with Google Ads, early results for Local Services Ads are showing a 389% decrease in CPL. If this trend continues, we will continue to invest paid budget towards Local Services Ads.

If you are looking for a way to expand your reach in a specific area and get your ads back on top, why not test Local Services Ads?

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