Local Services Ads vs Google Ads: which one do I pay for?
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Founder, ProveWorth
No, they are different products. Local Services Ads charge for valid leads, and Google Ads Search campaigns charge for clicks. Compare what each costs you per customer won, not per lead, because the two bills are not alike.
Google says Local Services Ads charge for each valid lead, and lead prices vary by location, job type, lead type and bidding mode. With Search Ads you set a maximum cost per click. Google prints no typical price for either.
The catch is who can use them. Local Services Ads are open only to certain categories by location. Google tells everyone else to try Google Ads, so check eligibility first.
How does each one bill?
Local Services Ads bill per valid lead. A valid lead includes a phone call you answer, a text or email, a voicemail, or a booking request. A missed call can count too, which the Local Services Ads guide covers.
Google Ads Search campaigns bill per click, and your bid is the most you will pay for one. Neither Google page lists a typical price, so I will not guess at one.
Who can use Local Services Ads?
Only businesses in categories and places Google covers. Lawn care, junk removal, house cleaning, pest control, carpet cleaning, tree services, plumbers and landscaping are on the list. Pet waste removal and pooper scooper were not when I checked it.
If your category is missing, Google's own line is to try Google Ads. Do not choose a nearby category to force eligibility.
How do I stop paying for clicks outside my area?
Set your location options on purpose. Google Ads offers Presence or Interest, which also reaches people interested in your locations. Presence reaches only people in or regularly in them.
Location signals are imperfect, so read your real leads. A person searching from elsewhere may own a property in your area.
Which one costs less per customer?
Nobody can tell you from a price list, because Google publishes none. You find out by tracking each source separately.
Here is a made-up example. $400 of leads that become 4 customers is $100 a customer. $400 of clicks that become 2 customers is $200 a customer. Use what is CAC to work out your own.
What do I do next?
Check eligibility, then read what happened to the Google Guaranteed badge and ROAS vs ROI. The longer version is Google Local Services Ads.
Reviews on your own page work next to any ad, since a prospect can look you up before they call. You can get your free page or see how it works.
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Key takeaways
- 1Local Services Ads charge for valid leads, and Google Ads Search campaigns charge for clicks.
- 2Google prints no typical price for either one.
- 3Local Services Ads are open only to certain categories by location, and Google says to try Google Ads if yours is missing.
- 4Google Ads lets you choose Presence or Interest, or Presence only, for location targeting.
- 5Compare the two by cost per customer won, not cost per lead.
Related questions
Are Local Services Ads and Google Ads the same?
No. Local Services Ads charge for valid leads. Google Ads Search campaigns charge for clicks.
How do Local Services Ads charge?
Google says you are charged for each valid lead. Lead prices vary by location, job type, lead type and bidding mode.
How does Google Ads charge?
Search campaigns bill on clicks. You set a maximum cost per click, the highest amount you will pay for one.
Can any business use Local Services Ads?
No. Google says the ads are available only for certain service categories. Check eligibility in Google's tool.
How do I avoid paying for people outside my area?
In Google Ads, choose Presence to reach people in or regularly in your locations. Presence or Interest also reaches people who showed interest.