Local Service Ads vs. Google Service Ads: Which is Best For Your Business?

Entrepreneurship is hard, especially if you have newly launched your local business. You may find it hard to get new customers. While you are left wondering what went wrong, it’s probably the main thing that you have missed out on, i.e., advertising. As digitalization has taken over the business world, it is integral to focus on online advertising, especially the popular ones, i.e., Google ads and local service ads (LSA). 

The primary goal of online advertising is to increase the visibility of your business to the target audience. This helps to boost sales, thereby boosting profit margin. Hence, if you are a local business owner, you must have awareness of the LSA (Local Service Ads) and Google service ads. With this knowledge, you can outrun your competitors and stand out in the market. BrandLoom, the top online advertising agency, can help your business with that. 

Advertising is one of the key factors that enable a business to perform well in a highly competitive market. Hence, it is important to focus on this to ensure the overall growth of your business. If you find yourself torn between Google ads and LSA (Local Service Ads), this blog can help you demystify the theory behind choosing the most appropriate one for your business. But first, let’s learn more about these. 

Introduction To Local Service Ads (LSA)

Google has come up with a specialized advertising platform named Local Services Ads (LSA). This platform is designed specifically for serving the service-based businesses. Local Service Ads enable such businesses to create connections with the local customers so that they can utilize the services they are offering. 

The Local Service Ads are responsible for generating leads, increasing visibility, and building trust. As the LSAs help to create direct connections between the target customers and local businesses through messaging and calling, they enable organic lead generation where businesses have to pay for the actual leads. Moreover, Google search results showcase the local service ads at the top, enhancing their visibility to the target customers. With the increased visibility, it becomes easier for businesses to get located by the customers and boost sales. 

LSAs are cost-effective online advertising tools that follow a pay-per-lead (PPL) model. Here, the businesses are required to pay only for leads that showcase genuine interest in the services offered. Hence, it is a cost-efficient choice compared to the traditional pay-per-click (PPC) model. PPL model usually has a fixed pricing for each lead. Also, local service ads use this model to effectively turn these leads into paying customers. 

Introduction To Google Ads

Google AdWords, which is now known as Google Ads, is introduced by Google. This online advertising platform enables the businesses to promote their products and services through creating ads across Google search results. These ads also show up in YouTube and partner websites of Google. The best online advertising agency in India, BrandLoom, can help your business grow through the formulation of high-quality Google ads. 

The purpose of Google Ads involves targeted advertising, performance measurement, enhanced brand visibility, and efficient cost control. Google Ads uses targeted keywords to engage specific audiences. The features allow the ads to be showcased to certain audiences based on their interests and demographics, making the search more directed. It enables the customers, who are actively searching for the product, to view the ads and make the purchase.

Advantages & Disadvantages of Local Service Ads

LSA or Local Services Ads have certain pros and cons; let’s have a look at those,

Pros Of LSAs

1. High Brand Visibility

In Google search results, local service ads appear at the top, overlapping with other traditional ads. It enhances brand visibility to the target customers. It specifically helps to broaden the exposure of the service to the potential clients who are actively searching for the same around your area. 

2. Targeted Audiences

As the LSAs can be optimized according to the desired geographic location, it is a powerful tool for advertisers looking to connect with audiences from a specific area. The precise geographic targeting allows the ads to reach the intended target group, boosting the overall productivity of the same. 

3. Credibility And Trust

Google Guarantee badge is one of the key reflections of credibility and trust. The LSAs have this badge, which reflects that the businesses are verified. This badge helps the customers to trust the brand and choose it over the competitors who are not verified. Hence, local service ads can provide businesses with additional features to showcase their credibility to the target market. 

4. Simplicity

It is understandable that small, newly established businesses may lack marketing expertise. Marketing is one of the key aspects that distinguishes your business from others. Small vendors may not have dedicated marketing departments to manage the online advertising part. However, LSAs are simple and easy to operate. You can set and manage these ads easily on your own. 

5. PPL Model

LSAs follow the PPL or pay-per-lead model, which requires advertisers to pay for actual leads. This can result in lower costs per acquisition than the usual PPC ads or campaigns. Therefore, this is a key advantage for the local service ads. 

Cons Of LSAs (Local Service Ads)

1. Lead Quality Concerns

The nature of the format of LSA is likely to attract spammy or poor-quality leads. This can make the overall process ineffective and waste resources. Due to no differentiation and lack of a landing page, leads may have lower intent, leading to increased bad leads. 

2. Less Control Over Optimization

The LSAs have lower customization options, affecting the overall efficiency of the ads. These ads cannot be optimized to make them more targeted, which reduces their overall capacity to attract potential customers. Hence, the less control over its optimization is a major drawback for local service ads. 

3. Limited Availability

The most important disadvantage of LSAs is their limited availability. There are specific service categories that are suitable for local service ads, while the rest of the businesses cannot opt for LSAs. This limited availability has negatively impacted their popularity as only the service-based businesses prefer to go with LSA.

4. Geographic Restrictions

If your business is trying to reach out to customers from various locations, then you might face challenges with LSAs. It has geographic restrictions that prevent it from reaching potential customers in a broader area. With the overall reach compromised, the leads are only generated from nearby areas, blocking your business from connecting with a broader audience. 

5. Complex Application Process

Here, it is important to acquire a Google Screened badge to showcase to your potential clients that your business is Google verified. However, the application process to obtain the same can be lengthy and time-consuming. Hence, it may discourage some business owners from continuing with LSA. 

6. Lack of Reviews

If your business is newly set up and has no existing reviews on Google, then it can be troublesome for you. Lack of reviews will make you stay behind the competitors with existing Google local services ads reviews. The potential customers will also skip your service for the competitor’s. 

Advantages & Disadvantages of Google Ads

Google Ads Services have specific pros and cons, which is discussed hereby,

Pros Of Google Ads

1. Vast Exposure

As Google is the most utilized search engine across the globe, opting for Google Ads automatically enables the advertisers to enter into a world of vast audience, i.e., the potential customers. Prospective buyers from all over the world use this popular search engine to actively look for their products and services. It allows numerous curious audiences to click over the ads and explore the product features or service offerings, exponentially boosting the brand visibility. 

2. Refined Targeting

Google Ads are more precise when it comes to targeting. The advertisers can tailor the ads as per the target market. While setting up the ads, the preferred customer demographics, such as age group, gender, geographic locations, interests, etc., can be included to ensure a more refined exposure. This helps the ads to target only the relevant audience, thereby resulting in more effective engagements. Refined targeting helps to reach more relevant customers and boost the overall sales of a business. 

3. Tangible And Instant Results

When it comes to performance measurement, Google Ads is most efficient. These ads come with metrics that help businesses to analyze how their ads are performing. These analytics provide detailed insights of the ad performance, making it easier for the advertisers to determine its overall effectiveness. This feature allows them to yield the most effective outcomes from their ads.

Traditional ad strategies can take time to showcase results. In the meantime, Google Ads is capable of generating instant leads and traffic as soon as the campaign goes live. So, instant outcome is another key advantage of Google Ads. 

4. Diverse Ad Formats

While looking to expand your customer base, it is integral to choose the best format according to the product or service your business is offering. The best aspect of Google Ads is that it supports different types of ad formats, making it easier for you to choose which one will complement your business the most. There are display ads, search ads, shopping ads, and video ads. The businesses can choose in accordance with their marketing goal to enable the best results. 

5. Maximized Return Potential

Google Ad has a high return potential on your investments, making it a better choice if you need fast results with a limited budget. If the ads can be managed efficiently, it can enable maximized ROI (Return on Investments). Hence, the ad spending is totally worth it. BrandLoom provides the most efficient paid search advertising services that can ensure 10X ROI for your business.

Cons Of Google Ads

1. CPC Model

The Cost-per-click (CPC) structure followed by Google Ads enables businesses to pay whenever their ads get clicks. Mismanagement of the same can cost the businesses a fortune, thereby emphasizing the importance of proper management while opting for these ads. In the competitive markets, the CPC cost can elevate, affecting the financial backbone of the businesses.

2. Ad Burnout

Ad fatigue or ad burnout refers to a situation where an ad appears multiple times, making the viewers lose interest in the product or the brand. Without proper management, ads can run repeatedly, eventually making the audiences tired of it. It will reduce their interest in making a purchase, thereby lowering the click-through rates with the passing of time. This will have a direct impact on the business growth, reducing the overall sales. BrandLoom’s superior advertising services help you overcome the challenges related to ad burnout. 

3. Challenging Learning Process

The Google Ads services come with a difficult learning curve due to its numerous settings, which can be overwhelming for the newbies. If you do not have prior experience with PPC (pay per click), you might find it difficult to deal with all the settings that come with Google Ads. Hence, without experience, it is hard to manage these ads. Any error may lead to financial mismanagement, leading to losses. 

4. Budget-sensitive

The key disadvantage of Google Ads is that they are greatly dependent on the budget. The ads run in accordance with the Google ads account balance. Once this budget is exhausted, the ads will automatically stop running, thereby enabling no fruitful outcome for your business. Therefore, it is integral to keep an eye on the budget to make sure the ads continue to yield an effective outcome. Without monitoring, you can lose your valuable time to your competitors, who will attract your customers with their compelling ads.

5. Click Fraud Vulnerability

Click fraud is common nowadays, where a BOT or an individual repeatedly clicks over an ad to incur higher charges. Ads following a PPC model, such as Google Ads, are most vulnerable to these frauds. This can lead to higher costs, making a negative impact on your business. Hence, this con is to be kept in mind while opting for Google Ads to promote your products or services. 

Local Service Ads Vs Google Ads

Now that you have a solid understanding of LSA and Google Ads, the situation has become more complex. You are torn between two efficient options; both are capable of giving your business that much-needed push. It is integral to go through the key differences between Google Local Service Ads and Google Ads so that you can choose the one that will deliver the most impactful outcome for your business. 

What Is Google Guarantee?

Google Guarantee badge is one of the verification processes found in the local service ads. This helps in boosting credibility while encouraging the target market to opt for verified businesses. This badge is given to the businesses after successful verification of their documents. This badge allows your ads to get noticed by potential clients, as individuals have a tendency to opt for trusted providers. 

What is Google Screened?

Google screened is similar to Google Guarantee to some extent. Both of these badges reflect credibility and trust. However, there is a difference. Google Screened validates the authenticity of the professionals who are expected to provide the services. The screening process verifies whether the concerned professional has adequate expertise to provide the said service. It is more important for businesses that require high-level expertise, such as lawyers. 

How LSA & Google Ads Complement Each Other?

As both of these are unique in their own way, it is essential to understand that both are equally beneficial for your business if you can choose the one that is best for you. However, you can also combine local service ads and Google ads to leverage the best features of both to make your business grow. Here’s how,

• You can use both of these ads to expand your reach. You can use the LSAs to reach the local prospects. In the meantime, Google ads can be used to target the broader target audiences. With an efficient combination of both, you can witness a massive hike in your reach as well as your sales.
• You can enhance your brand visibility positively by using both of the ads. LSAs will make your brand visible by showing it at the top of local service searches. Whereas, Google ads will help your brand to introduce itself to the potential customers across the borders. An effective combination of these ads can ensure your loyal customer base is a mix of both local and global customers, highlighting your brand in the business map. 
• By leveraging the trust quotient from both of these ads, you can effortlessly turn into a trustworthy and credible business in no time. LSAs provide you with a Google Guarantee badge that is enough to catch the attention of local customers. Meanwhile, Google ads have reviews and case studies to prove their worth, which helps to further reinforce your credibility.

When You Should Not Use Google Ads?

Online advertising has become an eminent way to reach potential customers. Businesses are extensively using it to expand their business globally as Google ads allow them vast exposure. However, there are certain times when you should refrain from using Google ad service. Let’s have a look at them.

• If you have a low budget for online advertising, it is wise to avoid opting for Google ads services. These ads run on a higher budget and can drain your limited resources in no time, landing you a place from which you can neither return nor go ahead. 
• Business objectives change with time, and there are times when businesses want to focus on local customers. In such a scenario, it is wiser not to choose Google ads. It may bring you immediate results, but you have to spend a lot. In contrast, you can easily run a LSA at a lower cost and generate effective results. However, this is applicable only to service-based firms. 
• Google ad service is not for you if you do not like technology. Optimization of Google ads requires proper technical knowledge, and setting it up is not easy at all. You have to spend quite a lot of time with these ads to ensure they yield the best outcomes for your business. Also, keyword optimization is a must for these ads. So, if you do not like any of these, refrain from choosing Google service ads. BrandLoom’s the best search engine advertising services in India will ensure you get a maximized return on your Google ads.

Are Local Services Ads Worth Investing In?

In this digital era, online advertising is a key way to reach new-age customers who prefer to spend their time on the Internet. They go through social media and stay connected to their peers, learning about new things every day. Local service ads LSAS can be highly beneficial for your business if you know how to utilize them well.

Service-based businesses can maximize their profits through local ads services. The use of efficient local keywords can land them in front of the ideal prospects, eventually turning them into paying customers. LSAs are locality-specific and function around the chosen area only. Hence, these are expected to reach more potential customers who have a higher likelihood of choosing your service due to the geographical advantage. 

Local service ads typically follow a PPL or pay-per-lead model where the prime focus is to arrange leads for the advertiser. The best thing about these ads is that you only pay for the leads and not the clicks. Therefore, it is a cost-effective online marketing method where each of your penny counts. As these ads appear at the top of the Google search results, they grab most of the attention of the curious web surfers, eventually landing you a pool of clients. 

Imagine you have a small service-based business that is focused on local customers only. Now, you want to use the scope of online advertising to boost your business. You are running low on budget and want to settle for something that is worth investing in. Here, local service ads can do wonders for you! Investing in these ads can bring you more positive results than you can ever imagine, only if you follow the do’s and don’ts.

How To Know If Your Business Qualifies For Local Service Ads?

Before setting up a Google local services ad, you must check whether your business qualifies for the same or not. The primary requirement is a Google My Business account. Without this one, it is not possible to set up the LSA. Also, these ads are applicable only to service-based businesses. So, if you are a product-based firm, this ad is of no use to you. 

A background verification process will take place before the ad is live. For that, you must submit all the necessary documents to Google and wait for them to complete the process and give approval. Google’s local service ads need to get a Google Guarantee badge to reflect trust and credibility. Once Google confirms that you are licensed and insured, there is no turning back. You can start with your local service ads as soon as possible without any further obstacles coming your way.

Steps To Set Up Google Local Services Ads

There are certain steps to follow for setting up local services ads for your business.

1. Cross-check whether your business is eligible for LSAs in your location. Use information from the earlier section.
2. First timers must sign up for ads.google.com. You can sign in if you are an existing user.
3. Create your business profile by incorporating information like business name, contact details, offered services, and your service area. 
4. Upload relevant documents for verification to earn a Google Guarantee badge. 
5. Carefully set your ad budget
6. Write ad copies to resonate with the target audience and add high-quality pictures of your business
7. After it is approved and live, track the leads and manage accordingly.

Manage Your LSAs Like A Pro

There are different ways through which you can track your local service ads and get an idea of their performance.

• The ‘budget’ box below the ads helps you to manage various aspects associated with your ad budget so that you can manage them accordingly. The factors like bidding mode and weekly budget can be fixed in accordance with your expected outcomes. 
• Under the ‘job types’ section, you will find a list of services offered by your business. If you decide to introduce new services or discontinue any of the old ones, you can add or remove them by editing this particular section. 
• Under ‘settings’, there is an option called message leads. Turning this on allows your customers to contact your business through messages or calls. However, messaging is now available only for specific countries. You can also add the latest high-quality photos to the ‘photos’ section. Both of these sections are not part of the approval process. These steps are highly important in connecting with the right audience.
• You can check your leads via the ‘leads’ section here. It contains a summary of the leads; sometimes, you may get access to call recordings (only applicable to certain countries). You can save their calling number and approach them further to turn them into paying customers. From the details given to these leads, you can determine whether you are getting high-quality leads from the local service ads or not.

Improve Your Local Service Ad’s Performance

The overall effectiveness of your ads lies in your own hands. You must complete your ad profile to ensure your local service ad yields the best results for you. A completed profile, along with high-quality pictures and current business hours, allows the target audience to have an interest in your services and transform them into efficient leads. A completed profile with verified data can bring you numerous customers. 

You must fix your budget and bidding mode in accordance with your needs. This will keep you from overspending and loss and ensure that your ads make the most of their initial spending. The budget should be calculated beforehand so that you avoid unwanted expenditures resulting from budget miscalculation. Another crucial factor that can enhance your ad efficiency is reviews.

It is known that positive reviews work as a customer magnet. Therefore, it is essential to ask satisfied customers to leave a review on Google. If you delay asking, the likelihood of getting reviews diminishes. Once you get a review, you have to reply to it promptly. Google ads local services require businesses to be responsive to emerge as successful ones. It is better to keep an average review of 4+ to get the attention of maximum audiences. 

Google Local Services Ads Cost

When it comes to the budget, Google’s local service ads are meant to give you some relief as these are not as costly as the Google ads. The smaller exposure compared to the Google ads can be the reason behind this cost differentiation. BrandLoom, the best online advertising agency in India, not only helps set up the ads but also ensures they give 10X ROAS. Let’s have an idea about the costs associated with local service ads by Google.

The average cost per lead ranges between $2 to $50, depending on the industry and type of service. For instance, a home cleaning service is not as expensive and complex as a legal service. Hence, the cost depends on the expertise level and knowledge base required to provide the concerned services. These costs may also vary based on the location preference. For instance, the cost of a home cleaning service in a city will be higher than that of the countryside.

How To Decide Which One Is Best For Your Business?

Choosing the best type of ad is similar to choosing a life partner for you. If you choose the right one, you will be on top of the world, but if you go with the wrong one, you are doomed for life! When it comes to deciding between local service ads and Google ads for your business, you should be careful, as the future of your business depends on it. You must focus on certain key factors, and an analysis of them can make the choice crystal clear for you. 

1. If your business offers a service, LSA would be a convenient choice. Meanwhile, if you are a product-based firm, you must not consider LSA, as Google ads can ensure better outcomes for you. Google ads cater to companies offering a product or a service. 
2. If you are a local service-based business, LSAs would yield better results for you at a lower cost. If you choose Google Ads for it, it will be like using a car to visit your next-door neighbor, whose place roughly takes five steps to reach. However, if you plan to take your business to the global market, you can always count on Google ads; they will serve the best results for you. 
3. If you are not tech-savvy, it is better for you to go with LSAs. This can be easily set up, making it an ideal choice for the newcomers. As for the Google ads, prior experience with the PPC model is a must, otherwise the growth of your business will be lost in the maze of numerous Google ads settings. So, choose wisely, or lose it all!

Conclusion

Online advertising is one of the key aspects that can take your business from zero to hero. Local service ads and Google ads are both effective tools to ensure your business has all that it takes to build a loyal customer base and maximize profit. This blog has covered all the relevant points that address the effectiveness of both in boosting the growth of your business. Still, the question remains: which is best?

It is difficult to choose the best one between Google ads and local services ads. You have to consider the aspects that are essential for your business while making a choice between these two. If you have a local business with limited budget and focusing on mainly local customers, then it is better to go with LSA that follows a cost-effective PPL model. However, it has to be a service business, not a product-based one.

In the meantime, if you are a growing firm with no budget constraints and looking forward to taking your business to the global corridors, Google Ads will be an appropriate choice. It will help you to connect with high-intend potential customers across the globe. However, it needs proper budget management due to its PPC model. Hence, both ads work in a favorable environment. With BrandLoom’s top-notch online display advertising services you will get compelling ad copy along with well-structured ad campaigns to make your business rule the market.

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