Local Services Ads (LSAs) are a high performance marketing tool offered by Google to local businesses looking to connect with local customers that need help reliably and quickly. In contrast to Pay Per Click (PPC), the LSA platform utilizes a pay-per-lead model, where businesses only pay for a lead if a call lasts for more than approximately 30 seconds or more. Messaging is also available (via email) which provides prospective customers with an instant communication method to contact a business without the need for a call. From the business-side, message leads are also a little more cost effective compared to their call-counterpart.

While both LSAs and PPC ads allow you to appear at the top of Google search results, LSAs offer a more targeted approach for local businesses and focus solely on delivering qualified leads – potential clients who are ready to call, message, or book your services. Another unique aspect of LSAs is the “Google Guaranteed” or “Google Screened” badge, which adds a layer of trust that PPC ads don’t provide, giving prospective clients more confidence in your business.

How Do LSAs Work?

Google’s Local Services Ads (LSAs) are designed to connect local businesses with potential clients precisely when they’re searching for specific services in their area. So, how does the platform work to drive qualified leads to your business?

Targeted Ad Placement at the Top of Search Results

When someone uses a very specific search for a service you offer (like: plumber near me), Google displays LSAs at the very top of the search results, making them the first ads that potential clients see. These ads are positioned above traditional Pay-Per-Click (PPC) ads and the organic search results, which provides your business with the maximum visibility in Google for that search. This visibility is important as users are often not inclined to scroll very far down a page and the position of your ad draws attention to  your business immediately. This increases the likelihood of a connection with high-intent clients.

Pay Per Lead, Not Per Click

One of the most important differences between LSAs and standard Google Ads is that LSAs work on a pay-per-lead model rather than a pay-per-click basis. This means you’re only charged when a potential client contacts you directly through the ad – whether they call or send a message.

Did you know – approximately 1 in every 3 LSA leads turns into a booked job?”

This billing method ensures that your marketing budget goes toward actual leads and not just clicks – making LSAs more cost-effective for local service providers looking to maximize their ad spend.

Google Guaranteed or Screened Badges for Added Trust

LSAs also feature “Google Guaranteed” or “Google Screened” badges, depending on the type of service your business provides. These badges help to build immediate trust with potential clients, as they signal that Google has verified your business as reputable and reliable, increasing the likelihood of client engagement. To qualify, your business undergoes Google’s verification process, including background checks and licensing validation. At Riley Summers Marketing Group, we have very detailed knowledge of these processes and can help to explain them to you in a thorough yet easy-to-understand way.

Local and Service-Specific Targeting

LSAs are tailored to your service area, showing ads to people located within your specified geographic range. The platform enables advertisers to define a service area based on zip codes, cities, or other location parameters like counties, to ensure you only attract local leads. You can also specify the specific the services you provide, such as “plumbing repair” or “personal injury law,” so your ads are displayed only to clients searching for those particular services.

What Are The Benefits of LSAs For Jupiter Businesses?

For local service providers, Google’s Local Services Ads (LSAs) offer a strategic advantage in reaching new clients. Unlike traditional advertising, LSAs are tailored to generate high-quality leads, connecting you with people in your area who need your services right now. There are many benefits to investing a percentage of your marketing budget into Local Services Ads:

1. Top-of-Page Visibility

LSAs are displayed at the very top of Google’s search results when a user enters a very specific search that is relevant to the services your business provides. This gives your business a prime location in those search results that prospects will see before any other search results or ads. For businesses that have been advertising for some time, think of this like the inside cover of the Yellow Pages! This positioning significantly increases visibility, putting your business front and center for potential clients with immediate service needs.

2. Cost-Effective Pay-Per-Lead Model

As referenced earlier, you only pay when a lead contacts you directly through the ad – whether it’s via call or message. This pay-per-lead model is more cost-efficient than traditional Pay-Per-Click (PPC) ads, where you pay per click without a guarantee of client interaction. With LSAs, your ad budget goes further, as you’re only investing in genuine client connections.

3. Enhanced Credibility with Google’s “Guaranteed” and “Screened” Badges

One of the standout features of LSAs is the option to earn a “Google Guaranteed” or “Google Screened” badge. This badge signals to clients that your business has been verified by Google, adding a layer of trust that regular ads can’t provide. Potential clients are more likely to engage with a business that has this endorsement, as it assures them of your reputation and reliability. It was initially made as a requirement by Google so that in the event of a service provider not providing quality service, customers had recourse with Google to potentially obtain a refund for the services that were performed improperly.

4. Direct Access to Ready-to-Hire Clients

LSAs target high-intent searches, meaning your ad is shown to people specifically looking for your services in real-time. This results in more valuable leads, as clients who reach out are generally ready to hire. This targeted approach helps reduce time spent chasing low-quality leads, allowing you to focus on clients with a strong likelihood of conversion.

Factors Affecting Ad Ranking

Google uses several factors to determine the ranking of LSAs, such as your business’s proximity to the searcher, responsiveness to leads, customer ratings, and the completeness of your LSA profile.

Easy Lead Management through the LSA Dashboard

The LSA platform provides a convenient dashboard where you can manage all incoming leads. Here, you can track client inquiries, respond to messages, view call logs, and manage customer reviews. This dashboard simplifies the process of handling leads and allows you to keep all communications in one place for easy follow-up. At Riley Summers Marketing Group, we also include Local Services Ads data in our monthly marketing performance reports.

5. Increased Local Reach and Precision Geographic Targeting

With LSAs, you can tailor your service area to cover specific cities, neighborhoods, zip codes, counties and parishes – reaching only those clients within your defined target location (there is a map in the platform to visually demonstrate the coverage area). This precise targeting ensures you’re investing your ad budget locally, maximizing your reach among nearby clients who are more likely to convert into paying customers.

6. Simplified Lead Management

Google’s LSA platform includes a user-friendly dashboard where you can manage incoming leads, respond to messages, review call logs, and track your reviews. While calls are still directed to a predetermined number of your choice and messages are sent to the email address you would like them sent to – this centralized tool makes it easy to follow up with clients promptly, enhancing your responsiveness and improving client satisfaction.

7. Boosted Client Confidence Through Reviews

LSAs highlight your customer reviews and ratings directly within the ad, making it easy for potential clients to see feedback from others who have used your services. Positive reviews can be a powerful motivator for new clients, and the visibility of these ratings right on your LSA profile helps establish trust from the outset.

8. Reliable ROI Tracking

The LSA dashboard allows you to see the number of leads generated and the associated costs, making it simple to track your return on investment. By focusing on measurable leads and actual client interactions, LSAs provide a clear picture of the value your ad spend is generating.

How Hard is it to Set Up A Local Services Ads Account?

The process to set up an LSA account is not difficult however, it can take time, patience and an attention to detail. Some important factors include:

Step 1: Check Eligibility

Before starting, ensure that your business type is eligible for LSAs in your area. LSAs are available for various industries, including legal, home services, real estate, and financial services, but Google limits eligibility based on location and business type.

Step 2: Create a Google Business Profile (if you don’t have one)

If you don’t already have a Google Business Profile, you will need one to obtain an LSA account. A Google Business profile helps to verify your business and builds your credibility. It includes important details like your business name, address, phone number, and customer reviews, all of which strengthen your LSA presence.

Need some help with a Google Business profile? Learn more here!

Step 3: Apply for Background Checks

Google prioritizes trust and safety, so some industries (like home services and legal) require background checks. You and potentially other employees who will be represented in the ads may need to complete these checks. Google partners with third-party agencies to handle this securely, so you’ll receive instructions on completing the process. While it takes time, passing these checks is key to earning the Google Guaranteed badge, which boosts customer confidence in your ads.

Step 4: Enter Your Business Information

After verifying eligibility and passing the required background checks, now you can enter your business details into the profile. This step includes:

Service Areas: In this section, you can specify the geographical areas you serve. This is important as LSAs allow you to target customers in specific zip codes, cities, counties or DMA’s (Designated Market Areas), which is perfect for businesses that want to serve a particular Geographic region.

Services Offered: Next, you can select the specific services you provide from a pre-set list. For example, if you’re a law firm, you’ll see options tailored to legal services, and similarly for other industries.

Business Hours: This is self explanatory however, you can set accurate hours to ensure customers know when you’re available. For example – if you are closed on Sunday’s, the profile can display that information.

Step 5: Set Your Budget

LSAs use a pay-per-lead model, which means that you only pay when a potential customer contacts you through the ad. You can control costs by setting a weekly budget, which gives you flexibility based on your lead goals and, if leads exceed your budget, Google automatically pauses the ads until the next week, keeping you within your spending limits.

Step 6: Review and Launch

Once everything is set up, Google will review your account to ensure it meets their policies. This review process can take a few days, but once approved, your ads will start appearing in search results when customers in your area look for services you offer.

For industries requiring background checks, setting up an LSA profile can take time however, it’s manageable with a step-by-step approach. Once your ads are live, LSAs can be an effective way to connect with local customers ready to hire, offering a competitive edge in your service area.

By following these steps and keeping an eye on your campaign, you can successfully use LSAs to generate quality leads while staying within your budget.

What Types of Businesses in Jupiter Benefit The Most from LSAs?

Businesses that rely on local customers that are looking to find a trustworthy business that can provide a service they need quickly are the best candidates to use local services ads. Some examples include:

Home Service Providers

Plumbers, electricians, HVAC technicians, landscapers, and cleaners benefit greatly from LSAs. When a homeowner needs urgent repairs or maintenance, they typically search for “near me” type of services and LSA’s are placed at the top of those search results in Google.

Legal Services

Law firms and individual attorneys specializing in personal injury, family law, criminal defense, and estate planning also see positive results with LSAs. 10X Marketing Groups’ founder Mark Riley onboarded with the people that BUILT LSA’s. When LSA’s were made available to law firms in mid-late 2020 (Mark has worked with dozens of personal injury law firms across North America), Mark was one of the first marketing professionals to have his client portfolio listed.

In the personal injury space, cost per lead from LSA’s averages around $280 per lead (some markets higher, some lower) where 2-3 out of every 10 LSA leads turn into a booked job.

Real Estate Professionals

Real estate agents and brokers also benefit from LSAs as clients searching for real estate help are typically looking for trusted local expertise. LSAs allow these professionals to appear in relevant local searches, enabling them to connect quickly with home buyers, sellers, or renters looking for guidance in a specific market.

Financial Advisors

Local financial advisors, tax preparers and insurance agents can find great success in the LSA platform by connecting with clients looking for trusted financial guidance within their community. As potential clients often seek personalized financial advice and will most likely not travel more than 25 miles from their location, LSA’s can be a great option and a responsible investment for your marketing budget.

Health and Wellness Services

Many health-related businesses – chiropractors, physical therapists, massage therapists, and dental clinics, can leverage LSAs to attract patients looking for local care. When customers search for nearby health services, seeing LSAs at the top can increase confidence in the business, as it signifies that the provider has been vetted by Google.

Pet Care Providers

Pet-related businesses, like groomers, veterinarians, and boarding services are great service-businesses are great to advertise in LSA’s. Pet owners often search for nearby services to care for their pets and are drawn to businesses that offer a “Google Guaranteed” badge, reassuring them that their pets are in good hands.

LSAs excel at connecting service-based businesses with customers who are ready to act. Unlike traditional ads, LSAs target customers based on proximity and service relevance. This combination, along with Google’s vetting process, establishes trust and credibility from the start.

How Can I Get My Local Services Ad To Be Shown More?

There are a number of factors that can help your Local Services Ads profile to be featured by Google more frequently. This is important as unlike Pay Per Click, you cannot “buy” the top position in LSA’s – it must be earned. Let’s take a look at the things that really matter in an LSA profile:

Step 1. Optimize Your Business Profile

Your business profile is the foundation of your LSA, and keeping it complete, accurate, and updated can improve its chances of being shown more frequently. Make sure to:

• List all services you provide to capture a wide range of relevant searches.
• Set precise service areas to reach the right customers.
• Keep your hours up to date, as customers often look for availability when searching.
• A detailed, accurate profile helps Google match your ad to the most relevant searches, increasing its likelihood of appearing more often.

Step 2. Collect Positive Reviews Regularly

Customer reviews are a major influence on how often your ad is shown. Businesses with higher ratings and more positive reviews tend to get more exposure. Encourage satisfied clients to leave feedback, and make it easy by sending follow-up emails with a direct link to review your services. Google values recent, high-quality reviews and uses them to rank ads, so a consistent review strategy can give you a competitive edge.

Step 3. Respond Quickly to Customer Inquiries

Google favors businesses that demonstrate responsiveness. When you receive a lead through your LSA, aim to respond promptly—this signals to Google that you’re actively engaging with customers. Regularly check your messages, answer calls, and follow up on inquiries as soon as possible to maintain a high response rate. Over time, a track record of fast responses can help your ad appear more frequently.

Step 4. Set a Competitive Budget

LSAs operate on a pay-per-lead model, meaning you pay only when a customer contacts you. Google considers your budget when deciding how often to show your ad, so setting a competitive weekly budget can increase its visibility. If you find you’re getting leads below your budget, consider raising it slightly to stay competitive. Remember, Google will pause your ad once you reach your weekly limit, so a higher budget can keep it active for longer.

IMPORTANT NOTE – in some markets, we are seeing a correlation of ad spend in Pay Per Click and visibility in Local Services Ads – in other words, businesses that are spending the most in PPC ads in their industry/market are getting favourable treatment by Google via more visibility in LSA’s. This is an internal observation by our team that have access to many businesses that are advertising in Local Services Ads therefore, your own mileage may vary however, it is a trend we have identified…

Step 5. Earn the “Google Guaranteed” Badge

The “Google Guaranteed” badge reassures customers that your business has been thoroughly vetted, and this trust factor increases the likelihood of your ad appearing. To earn the badge, your business may need to complete a background check and license verification, depending on your industry. Once you have the badge, customers and Google alike see you as a more reliable choice, which can positively impact your ad’s visibility.

Step 6. Focus on High-Quality Customer Service

Positive experiences and high customer satisfaction can indirectly boost your LSA performance. Satisfied clients may refer you to others, leave strong reviews, and be more likely to reach out again in the future. Additionally, Google uses customer satisfaction metrics to help rank ads, so high-quality service can lead to more frequent ad displays.

Focus on building trust, engaging with customers quickly, and keeping your profile regularly updated. With consistent reviews, prompt responses, and a well-managed budget, you can maximize your visibility and generate more leads, helping you stand out in a competitive market.

The Pay-Per-Lead Model

With LSAs, you pay only when a customer contacts you through the ad. Unlike traditional pay-per-click (PPC) models, which charge you every time someone clicks on your ad, LSAs charge only for qualified leads—meaning a direct contact, such as a call, email, or message from a potential customer. This model ensures that your budget goes toward real inquiries from customers seeking your services, offering a more direct path to potential conversions.

Cost Per Lead Variances by Industry

Costs for LSAs vary significantly depending on the industry. This variance is due to competition levels, the typical value of a customer in each industry, and customer demand. For example:

• Home Services (like plumbers, electricians, and HVAC technicians): These services are often lower-cost per lead, typically ranging from $10 to $30 per lead in smaller markets, though costs can be higher in larger, more competitive areas.
• Legal Services (like personal injury, family law, and criminal defense): Legal leads are generally higher in cost due to competitive demand and the high potential value per client. Here, costs can range from $50 to $300 per lead depending on the location.
• Real Estate and Financial Services: These leads often fall between home and legal services, with a typical range of $20 to $80 per lead, though larger markets may see higher costs for real estate agents or tax professionals.

Geographic Cost Differences: Jupiter, FL vs. Miami

Geography has a significant impact on LSA costs. In smaller cities or suburban areas like Jupiter, FL, costs per lead are typically lower due to reduced competition compared to larger urban centers. For example:

In Jupiter, FL, an LSA-generated lead for a local plumber may cost around $10 to $20, while a legal lead could range from $50 to $150, depending on the legal specialty. We can confirm that in larger markets – like West Palm Beach – LSA leads for personal injury law firms are over $275 per lead, with the national average in the injury-law vertical being around that same price (some markets are seeing cost per lead @ $480+ on the high side, compared to $165 in a market like Minneapolis).

In Miami, the same services may have much higher costs due to greater competition. For example, a lead for a plumber in Miami could cost $20 to $40, while a legal lead could easily range from $300 and up, depending on the practice area and customer demand. The higher costs in Miami reflect the city’s larger population and denser competition among service providers. LSAs in high-demand cities like Miami often need a higher weekly budget to maintain ad visibility compared to less competitive markets like Jupiter.

Setting and Adjusting Your Weekly Budget

With LSAs, you have control over your spending by setting a weekly budget that suits your business goals. Google will manage your ad display within this budget, showing it as often as possible until your weekly limit is reached. For example, if you set a weekly budget of $200 and each lead costs $25, you can expect up to 8 leads per week. However, in larger markets with higher costs per lead, you may need to set a higher budget to capture the same volume of leads.

Pro Tip: In markets like Jupiter, you can start with a lower budget while still achieving decent lead volume. In Miami, a higher budget may be necessary to maintain competitiveness and maximize visibility.”

Earning the “Google Guaranteed” Badge For Your Jupiter Business

For eligible businesses, completing the steps to earn the Google Guaranteed badge can enhance your ad’s value and potentially increase lead quality. This badge requires background checks and sometimes licensing verification, depending on your industry. While the process may involve some upfront time and cost, it builds customer trust and can lead to higher visibility in search results, ultimately making your ad spend more effective.

Industry, geography, and competition all influence your lead costs, therefore it is important to understand these variables to help you budget your LSA budget more effectively. By managing your budget based on local demand and reviewing lead performance regularly, you can optimize your LSA campaign to drive valuable leads in both smaller and larger markets.

Comparing LSAs to Google Ads and Other Ad Platforms