By 2025, Google is poised to capture around 24.6% of the digital advertising market share, prompting over 80% of businesses to embrace Google Ads this year. Currently, Google commands over 83% of the global search engine market share, making the Google local service ads a prominent choice for local businesses eager to attract potential clients.
Google local service ads allow businesses to establish credibility and build their clientele with highly targeted audience segmentation. More than 45% of Google searches require local information, which makes Google local service ads a highly effective advertising medium for high advertising ROIs. Marketers often struggle to choose between Google Ads and local service ads, for each offer unique benefits and drawbacks.
In this guide, we will compare the two to gain a comprehensive understanding of how Google Ads and local service ads differ in terms of their advertising impact.
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How Google Ads Work?
Previously known as Google AdWords, Google Ads is a cutting-edge advertising dashboard that offers advertisers a plethora of tools to create, run and manage ads across multiple mediums. Google Ads feature a pay-per-click (PPC) model that allows advertisers to place bids on keywords relevant to their business. Payments are calculated for every click received on the ad.
Advertisers can explore an extensive array of formats, including Google display ads, search ads and video ads to interact with their target audience. Google Ads are versatile and ideal for brands operating across multiple industries and sectors. The targeting options are impressive, allowing businesses offering local services to reach their audience based on demographics, interests, and search patterns, among other metrics.
Why Choose Google Ads?
Advertisers choose Google Ads because of the highly precise targeting options that allow brands to establish awareness and credibility across their target audience. The Google MCC dashboard allows advertisers to manage multiple campaigns for different clients within one platform, offering separate billing options to eliminate chaos.
Let’s take a closer look at the features that make Google Ads a great instrument in your advertising arsenal.
Multiple Formats
Google Ads offers a wealth of formats for advertisers to get creative, such as text, images, videos, allowing them to tailor their advertisements to audience preferences.
Precision Targeting Options
Google ads offer various advanced tools to ensure highly accurate and precise targeting through optimizing Google ads headlines, allowing advertisers to target users based on specific keywords, location, devices, language, interests and more. These advanced targeting tools make ad campaigns much more effective and relevant to the target audience.
Data Driven Insights
Google Ads allow advertisers to make improvements with data-driven insights and analytical support. The dashboard is equipped with analytical tools that allow advertisers to track performance of their campaigns and examine metrics like conversion rates, clicks, views and impressions.
Verdict on Google Ads
Google Ads is a flexible and versatile platform that supports the advertising initiatives of businesses from a multitude of industries, allowing them to customize and tailor advertisements to boost audience engagement. The dashboard offers tools that ensure precise targeting and boost engagement by connecting ads with the right audience at the right time.
For advertisers eager to control spending, the PPC model is quite convenient and budget-friendly. However, businesses who seek to stand out in a local market and establish credibility for local services, the Google local service ads offer greater returns on advertising spending.
How Google Local Service Ads Work?
A recently introduced alternative to Google Ads, Google local service ads are a dynamic advertising medium for any business looking to promote local services and establish trust in their local market. The Google local ads are aimed at supporting businesses that sell services and aim to create awareness and leads from clients within their local market.
Google local service ads are placed at the top of search results when users make search queries regarding auto services, cleaners, contractors, plumbers or other service providers operating within their immediate area. Google local ads provide prominence and visibility, allowing businesses providing local services to stand out – providing a higher Google ad conversion rate!
How Much Do Google Local Service Ads Cost?
In order to determine how much do Google local service ads cost, it’s pertinent to understand the pay-per-lead model. Unlike Google Ads that charge for every click a user makes on an ad, Google local service ads are more effective and targeted. Basically, an advertiser only has to pay the platform when a potential customer contacts the business after interacting with the ad.
Why Choose Google Local Service Ads?
Service providers rely on Google local service ads to generate high-quality leads and pay only for conversions, when a user directly contacts them to engage their services. This advertising medium is much more precise and effective, as businesses aren’t paying for advertising but rather conversions.
Let’s examine some features that make Google local services ads a must-have platform for businesses promoting local services.
Google Guarantee Badge
The Google Guarantee Badge is the most coveted feature of Google Local Service Ads, as it elevates a brand’s market positioning with a seal of credibility. This badge is a seal of approval from Google, awarded to a company after thoroughly examining its background, licensing and track record. It assures potential customers that the business is a trusted and safe choice offering quality services.
Cost Effective Advertising
Google local service ads cost considerably less than most other advertising platforms, including Google Ads. Since advertisers pay on a pay-per-lead model, they don’t have to pay to run ad campaigns but rather, only for the potential customers who directly engage with their business.
Integration with Google My Business
Google local service ads are fully integrated with a business’s Google My Business (GMB) profile, supporting an increase in organic traffic and paid lead generation efforts. If you have a well-optimized GMB profile, running Google local service ads can boost your visibility in location-specific searches. Google local service ads run by businesses with a GMB profile typically appear on the top of local search results.
The Advantage of Local SEO
For businesses promoting local services within a specific market, local SEO is of the utmost significance to connect with their target audience. Google local service ads capitalized on local SEO, allowing advertisers to combine adwords local keywords with location-specific targeting. This combination allows local service providers to boost their visibility and enjoy higher lead conversions.
Verdict on Google Local Service Ads
Google local service ads empower businesses providing local services with a range of benefits, such as authenticity, credibility and higher visibility in area-specific search results. Advertisers who seek tangible returns will find the pay-lead-model of Google local service ads a budget-friendly strategy to generate high-quality leads.
For a company struggling to build a loyal clientele, the Google Guarantee Badge that comes with running Google local service ads can work wonders at establishing trust in the local market. Google local ads lead to greater conversions, and they are incredibly easy and simple to run and manage.
Companies with a meager market budget will be delighted to see that Google local services ads are effective and don’t require excessive spending.
Google Local Service Ads vs. Google Ads: What’s Better?
Advertisers running campaigns for multiple clients will find both Google local service ads and Google Ads dynamic tools to manage their workload and supercharge ROIs. But each tool serves a unique purpose and aligns with the marketing strategy of distinct businesses.
For instance, Google ads are ideal for businesses aiming to capture potential customers across multiple neighborhoods, cities or regions by broadening their horizons. In contrast, Google local service ads are shown to users based on the locations and zip codes added in their search queries.
Let’s compare the two options in more detail.
Audience Targeting Tools
Google local service ads are effective for businesses offering local services and eager to connect with potential customers within their area. While they are ideal for service providers aiming to grow their local clientele, ecommerce brands selling nationwide or globally will find the reach quite restrictive.
Google ads are a must-have tool for brands who want to amass a national or global audience, as it offers a broader reach with precision targeting features. In fact, Utilizing advanced audience targeting tools within Google shopping ads management allows for more precise segmentation and tailored ad delivery, optimizing engagement and boosting conversion rates.
Budgeting Concerns
Google local service ads and Google Ads have strikingly different payment models and budgeting concerns. For instance, Google local ads run on a pay-per-lead model, which means that brands are only charged when they directly engage from a potential client.
In contrast, Google Ads have a pay-per-click model that doesn’t account for actual conversions and charges the business every time a user clicks on the ad. Advertisers can expect a much controllable and predictable advertising budget with Google local service ads while Google Ads often lead to excessive spending on keyword bidding with no tangible results.
User Interaction
Google Ads is a highly effective tool to develop brand awareness and engage with the audience across multiple steps of the purchase cycle. Unlike Google local service ads, Google Ads generates brand awareness and continues interacting with the user throughout the decision-making process.
Google service ads are more effective at converting leads because they appear when a user is actively looking to connect with a business providing local services. The intent to convert and become a client is much higher with Google local service ads.
Google Local Services Ads (LSAs) help businesses connect with local customers through pay-per-lead ads at the top of search results, featuring “Google Guaranteed” or “Google Screened” badges for trust. Similarly, Google Merchant Center enables businesses to list products across Google, including Shopping ads and free listings, enhancing visibility and driving sales.
Ad Design & Placement
Google Ads offers a wealth of placement and formats to amplify your creative potential and tailor the ad experience to your audience’s preferences. These ads are placed in multiple placements, such as organic listings, result results and on websites affiliated with Google. Running local service ads offers the advantage of positioning your ad on the top of the search results – even above Google Ads and other listings.
In order to choose the right tool between Google Ads and Google local ads, you need to dig deep into your target audience, advertising goals and business strategy. Google local service ads are highly effective at boosting visibility for local service providers, while Google Ads offer a broader reach with multiple ad formats.
Businesses struggling to generate results despite spending uncontrollably on Google Ads will find our Google Agency Ad accounts a dynamic alternative for maximum impact. At GCG Media, our in-depth understanding of digital marketing and Google’s ever-changing algorithm has enabled us with cutting-edge techniques to fine tune campaigns and maximize conversions.
Final Thoughts
At GCG Media, we firmly believe that there are no one-fits-all solutions when it comes to raising brand awareness and establishing trust. Modern-day consumers are skeptical and turn to Google to conduct research and verify credibility for hiring a local service provider or shopping with an online brand.
Brands confused between Google Ads and local service ads need to assess their advertising needs and identify the right medium to connect with their target audience. If you’re struggling to generate leads and acquire new customers despite spending heavily on local and broad-reach advertisements, we suggest enlisting professional support.
Our Google Agency Ad Accounts come with specialized support, greater scalability, unlimited ad spending, and data-driven insights to boost ROIs and conversions. With highly targeted campaigns, our team will help you manipulate Google’s algorithm to expand your digital footprint and build esteem across your target audience.
Get in touch with our team today to learn more about our Google Agency Ad Accounts and how they can reduce spending while boosting conversions and revenues!
Frequently Asked Questions (FAQs)
What are Google Local Service Ads?
Google local service ads target users looking for a specific service within a local area. These ads typically appear when a user is actively seeking a service provider within a specific location.
Is Google Local Service Ads worth the spending?
Businesses looking to grow their clientele in a specific locale or neighborhood will find Google local service ads highly effective at establishing credibility and acquiring new clients.
How much do Google Local Service Ads Cost?
The cost varies, depending on your industry, location and conversions, but Google local service ads typically cost around $20-25 per lead.
