What are Google's Local Services ads?

Google local services ads explained

Updated 08/12/2024

Google is continually iterating and designing effective solutions for businesses to reach potential customers and convert them through strategic ads. Local service ads are specifically designed to help local service providers identify and convert relevant customers. These ads appear above other pay-per-click ads on the search page, making them highly visible to people actively looking for specific services. High placements in searches have been shown to directly correlate with click-through rates, with an almost 50% decrease in the click-through rate between positions one and ten. Let's take a closer look at local service ads and see if they're right for your business.

What is Google Local Services?

Local services ads are a pay-per-click lead generation model from Google, available to a growing number of service businesses such as HVAC professionals, movers, electricians, real estate agents, photographers, tutors, and more.

Local services ads are based on search location

Local Services ads are triggered by location-based searches.

A unique feature of local service ads is their ability to function as a marketing funnel. Relevant business listings are displayed for customers at the top of their search. Potential customers are then prompted to confirm their geographic region, and once they’ve done so, they receive direct contact information for the corresponding business.

What makes Local Services ads so valuable?

Snaring a Local Services ad can be a profitable coup for any business that qualifies leads with a geographic service area. The ads - which come with a zip code clarification that filters out leads based on location before they can access your business' page - direct prospects from the awareness or research stage of the marketing funnel to the conversion stage in a single session.

The reason these regional advertisements are so valuable is their position. Search rankings have a direct correlation with click-through rates. The CTR for the first position was 39.8 percent in 2024, according to First Page Sage. And for the 10th position, the CTR was 1.6 percent. The higher your ranking in the search engine results, the more likely leads are to click through to your page rather than the competitor's site.

As if a CTR over 20 percent wasn't valuable enough, Google’s Local Services ads guide users from awareness to conversion through a contained series of actions. The listings are basically a funnel for leads. When homeowners come across these ads, they click one of the three boxes presented atop the search rankings. From there they’re prompted to provide their zip codes. Once they’re qualified as within the business’ geographic service area, they’re given access to contact information, reviews and more.

Local Services qualifies leads based on job type and location.

Local Services qualifies leads based on job type and location.

How to get a top Google Local Services listing: It all comes down to experiences

Local Services’ pay-for-performance model means that your business only pays for the leads that realistically have a chance at becoming paying customers. And the fact that they got to your listing through keywords such as HVAC or plumber means that these nearby leads are looking for your services. In fact, the ad service qualifies inbound leads right down to the job. For example, prospects searching for plumbers can check for the availability of services such as pipe repair, toilet installation, clogged drains and much more.

Prospects using their mobile devices are able to take the next step directly from Local Services Ads. The page dedicated to your business gives leads the option to call or send a text message directly from the listing.

However, it’s important to make sure your business is always available to respond to individuals seeking your business’ services. Customer satisfaction plays an important role in how often Google displays your business’ listing. Maintaining a 24-hour presence can help you ensure Google prioritizes your business in its Local Services ads. But the focus on customer service goes deeper than that for these valuable listings.

Google’s five-star rating system also plays a critical role in which business’ ads it prioritizes. Only home services providers with the best online reputations get the invaluable visibility Local Services ads offer.

What Factors Can Cause Google Local Services Ads to Be Paused?

To ensure your Google Local Services Ads run smoothly, it's vital to keep an eye on several key factors. Ignoring these can lead to your ads being paused unexpectedly.

Verification Failures

  • Business Owner Verification: If Google cannot verify that you are the legitimate business owner, your ads will be halted.
  • Employee Verification: Similarly, failure to confirm the identity of your employees can lead to a pause.

Account Issues

  • No Associated Business Owner: Your account must be clearly linked to a verified business owner. If this link is missing, your ads won't run.
  • Budget Constraints: Ensure your account has sufficient funds. Ads will be paused if your budget runs out or if there is a financial issue.

By closely monitoring these factors, you can prevent disruptions and keep your Local Services Ads active.

What is the 'Google Guarantee?'

Google's Local Services ads come with a guarantee from the search engine company itself. Businesses must participate in a background check to obtain a Local Services listing and qualify for the Google guarantee. This certificate of approval can mitigate customer service disasters, build trust and insulate your business from risk. If customers aren't satisfied with your business' work, the guarantee will refund the amount paid for jobs booked through Local Services ads. However, the refund plan has a lifetime cap of $2,000.

Ultimately, this will protect your business form dissatisfied customers seeking refunds. And it can blunt negative reactions to any job with an unfortunate outcome. The stamp of approval, coming from a brand that consumers already trust, could make the lead conversion process easier. Certainly, a guarantee from Google couldn't hurt your business. Unless the lead is a vengeful Bing user.

What to Do if an Employee or Business Owner Fails a Background Check for Google Local Services Ads

If an employee or business owner fails a background check for your Google Local Services Ads (LSAs), you will receive a notification detailing the part of the background check that failed.

Steps to Take for a Failed Employee Background Check

  1. Appeal the Background Check:

    • Access the background check details by clicking on "Go To Evident."
    • Review the reasons for the failure and file an appeal if necessary.
  2. Remove the Failed Employee:

    • Select the trash icon next to the employee's name to remove them from your business profile.

Steps to Take for a Failed Business Owner Background Check

  1. Appeal the Background Check:

    • Again, click on "Go To Evident" to review why the background check failed.
    • File an appeal if appropriate.
  2. Replace the Failed Business Owner:

    • Click the trash icon next to the business owner's name to remove them from your profile.
    • It's crucial to always have an active, verified business owner listed to maintain eligibility.

Important Note:
Your business must always have an active, verified business owner. If the verification fails for the sole owner, your business will become ineligible to run Google Local Services Ads until a new, verified business owner is added.

Impact on Existing Ads

  • Pending Verification:

    • If the background check for the business owner is still pending, your ads will be on hold.
  • Failed Verification During Ad Campaigns:

    • Any ongoing ads will be paused automatically if a business owner fails the verification.

In both cases, your ads will only resume once the verification passes or a new verified business owner is added.

By following these steps promptly, you can minimize disruptions to your Google Local Services Ads and ensure your business remains compliant.

What Does the "Google Screened" Label Mean?

The "Google Screened" label signifies that a business has successfully completed a rigorous background check and qualification process conducted by Google.

Key Points:

  • Background Check: The process involves thorough checks on the business, ensuring legitimacy and adherence to industry standards.
  • Qualification Criteria: Businesses must meet specific qualifications, including proper licensing and insurance requirements.
  • Verification: This label indicates that professionals, such as lawyers or real estate agents, have been vetted for their expertise.

However, it's important to note that while this badge showcases a stringent screening process, it does not imply any form of monetary guarantee or warranty by Google.

How to sign up for Local Services listings

Getting a Local Services ad is as simple as signing up. For all the value they offer businesses, they're surprisingly easy to obtain. The first step is to confirm your business' eligibility. This requires a background check. All of your employees who service customers' homes will have to participate in the verification process. Google will also authenticate your insurance and licenses. Once that is completed your business' listing will be eligible to begin appearing atop the search engine rankings for local, home services queries. From there, prospects can reach you directly from these top-ranked listings.

However, to ensure your ad is one of the three that appears' in prospects' searches you'll have to maintain a focus on customer satisfaction. If your business can sustain fast response times and strong customer ratings, you'll lock down a spot among Google's top Local Services ads. And that sort of visibility will pay off. In fact, the average share of traffic links in the top capture is nearly 1/3 Google's organic search traffic, according to Chitika. Ultimately, Local Services offers the combined power of visibility and lead qualification.

Google's Local Services ads are yet another opportunity to capture better leads more often. Furthermore, they're an affirmation of your online reputation management strategy. And above all, these listings will help your business grow. Seems like an investment worth considering.

What Are the Next Steps After Passing Background Checks for Local Services Ads?

Once your background checks are complete, you'll need to proceed with a few crucial steps to get your Local Services Ads up and running:

  1. Team Contact: Expect to be contacted by a team member to guide you through the following stages.

  2. Preparation: Save time by completing any required checklists that provide important details to the ad specialists. For instance, filling out a comprehensive Google Local Services Ads (LSA) checklist can streamline this process.

  3. Setting Up Your Campaign: Work with the team to set up your Local Services Ads program effectively. This will involve configuring your ad settings, targeting options, and any specific details relevant to your business.

By following these steps, you'll be well on your way to launching a successful Local Services Ads campaign.

Steps to Take if Your Verification Status Shows an Error or Fails

If you encounter an error or your verification status fails, follow these steps to resolve the issue:

  1. Submit a Support Ticket:

    • Contact your platform's support team immediately. Send an email to their designated support address, typically found on their website.
    • Include all relevant details about the error or failure message for faster resolution.
  2. Review Requirements:

    • Double-check the verification requirements provided by the platform. Ensure that all necessary criteria are met.
  3. Troubleshoot Common Issues:

    • Incomplete Documentation: Ensure all required documents are fully completed and submitted.
    • Inaccurate Information: Verify that all information provided is accurate and up-to-date.
    • Expired Documents: Make sure none of the submitted documents are expired.
  4. Follow Platform-Specific Instructions:

    • Some platforms have dedicated troubleshooting guides. Refer to these in case specific instructions are provided for different types of errors.
  5. Seek Assistance from Forums or Community Support:

    • If initial support attempts fail, consider seeking advice from online forums or community support groups related to the platform.

Taking these steps should help you resolve verification issues efficiently.

When a Google Local Services Ads (LSA) verification fails, it's important to address the issue promptly to ensure your ads can continue running. Here’s a concise guide on troubleshooting a failed LSA verification:

Identifying the Issue

If a background check for you or your employees fails, you'll receive a notification detailing which part didn't pass.

Steps to Resolve Employee Background Check Failures

  1. Appeal the Decision:

    • Access the background check report to understand the failure.
    • If you believe there was a mistake, you can appeal to the background check provider (such as Evident).
    • Use the provided link or button to initiate the appeal process.
  2. Remove the Employee:

    • If an appeal isn't an option or isn't successful, you may need to remove the employee.
    • Do this by clicking the trash icon next to the employee’s name in your account dashboard.

Steps to Resolve Business Owner Background Check Failures

  1. Appeal the Decision:

    • Review why the verification failed.
    • Appeal to the background check provider if you think the result is incorrect.
  2. Replace the Business Owner:

    • If the sole business owner fails verification, your ads will be paused.
    • You must add a new verified business owner to maintain eligibility for running LSA ads.

Key Points to Keep in Mind

  • Continuous Verification: Always ensure you have an active, verified business owner. Without it, your ads will be ineligible.
  • Pending Verifications: Ads will be paused during any pending verifications.
  • Ad Pauses: Your ads will automatically pause if there's a failed verification for either employees or the business owner, or if there's no associated business owner.
  • Budget Checks: Ensure you maintain sufficient budget allocations to avoid ad pauses that aren't related to verification issues.

Common Triggers for Ad Pauses

  • Failed business owner verification.
  • Failed employee background checks.
  • Absence of a business owner on your account.
  • Insufficient budget for ad campaigns.

Need Assistance?

During this process, if you have any questions or face issues, don't hesitate to reach out to your support team.

By following these steps and keeping these points in mind, you can effectively troubleshoot and resolve verification failures, ensuring your Google Local Services Ads run smoothly.

What Are Effective Strategies for Converting Ad Traffic?

Getting a potential customer to click through is only half of the battle, they still need to book an appointment or make a purchase. 

Landing Page Optimization

A clean, well-designed and informative landing page with a call to action is key to converting. When potential customers arrive at your page, they should be able to clearly understand the services you provide. They should also be able to gain trust in your service through visible testimonials or reviews. Often, potential customers search via their phones, so ensuring your landing page is optimized for different devices is necessary to increase website engagement. Be sure to be specific in the call to action that you want customers to take, which could be to "book a call," "sign up" or "book an appointment." Our top tips for optimizing your landing page are suitable for all types of businesses.

Accurate Regional Expertise

The needs of homeowners can vary drastically by region. Having expertise in services that homeowners are looking for is necessary to help convert the right potential customers. In the Mid-Atlantic, for instance, customers might have more need for storm-proofing to combat severe winter weather. Customers in the South might need HVAC services to improve air circulation in their homes.

We recommend all service providers to test out local service ads. With the right strategy, it's possible to increase leads and turn them into customers.