Local service ads (LSA) are ads that appear at the top of Google search results when users search for services that businesses like yours offer in a specific area. By appearing in this prime real estate, businesses can increase their visibility and drive more direct leads.
However, many businesses struggle to fully optimize LSA campaigns for maximum performance.
In this article, let's learn the strategies and best practices for improving Local Services Ads (LSA) performance to ensure your business stands out. It also attracts the right leads and converts them into loyal customers.
What are Local Services Ads (LSA)?
Local Services Ads (LSA) are a specialized ad format offered by Google that allows businesses to promote their services directly to local customers. Unlike traditional Google Ads, LSAs are designed to feature service-based businesses such as plumbers, electricians, locksmiths, home cleaning services, and more.
The ads typically appear at the top of Google search results with a "Google Guaranteed" or "Google Screened" badge (depending on the service category), giving your business added credibility and trustworthiness.
LSA ads provide a streamlined process for users to directly connect with businesses through calls or message options. Customers can book appointments or request quotes with a single click, and businesses only pay when they receive a lead.
Learn more: What Is Local Service Ads (LSA)?
Why Local Services Ads Matter for Businesses
Local Services Ads offer several advantages for businesses looking to attract nearby customers such as high visibility, credibility, generating leads, and cost effective.
- High Visibility: LSAs appear at the very top of search results, often above organic listings and standard Google Ads.
- Credibility: The “Google Guaranteed” badge builds trust with potential customers, increasing conversion rates.
- Lead Generation: LSAs are designed to generate qualified leads, as users are directly looking for the services you offer.
- Cost Efficiency: You only pay for qualified leads, so your ad spend is more efficient compared to traditional PPC campaigns.
To ensure that your LSA campaign delivers the best possible results, there are several strategies to focus on. Below, we’ll walk through expert recommendations for improving LSA performance.
How To Improve Your LSA Performance
1. Ensure Profile Completeness and Accuracy
A fully completed and accurate LSA profile is crucial for success. Google uses the information in your profile to match your business with relevant searches, so everything must be accurate and up-to-date. Make sure your business name, address, and phone number (NAP) are consistent across all platforms. Google values consistency for local SEO and LSA performance.
Here’s how to optimize your profile:
- Business Information: Make sure your business name, address, phone number, and service areas are correct. This is the foundation of your LSA profile.
- Business Hours: Indicate your business hours to ensure customers can reach you at the right time.
- Services and Categories: Select the most relevant services and categories for your business. Google’s algorithm uses these selections to match your business with users who are searching for specific services.
- Photos and Reviews: Add high-quality images of your business, your team, or your work, and encourage customers to leave reviews. Positive reviews and visuals enhance your trustworthiness and appeal.
- Licensing and Certifications: If your business requires any specific licensing or certifications (such as for electricians or contractors), ensure these are listed in your profile.
2. Focus on High-Quality Customer Reviews
Customer reviews are a critical element of Local Services Ads. Google uses reviews to assess the credibility of your business, and positive reviews can significantly improve your LSA performance. Not only do they help boost your credibility, but they also increase the likelihood that potential customers will click on your ad.
Here’s how to manage and improve your reviews:
- Request Reviews: Actively encourage satisfied customers to leave reviews through email follow-ups or in-person requests. The more positive reviews you have, the better. Be proactive in following up with clients after a job is completed to ensure they are satisfied and encourage them to leave a review.
- Respond to Reviews: Always respond to customer reviews, whether they are positive or negative. Acknowledging reviews shows potential customers that you value feedback and are engaged with your clientele.
- Solve Negative Feedback: If you receive negative reviews, address them promptly and professionally. Offer solutions or apologize, which can mitigate the impact of bad feedback and show your willingness to improve.
- Keep an Eye on Quality: Google prefers businesses that maintain high ratings. Aim for a high star rating (typically 4.5 stars or higher) to increase the chances of your ad being clicked by potential customers.
3. Optimize Your Budget and Bid Strategy
Managing your budget effectively is essential to maximize LSA results. LSAs use a “pay-per-lead” model, meaning you only pay when you receive a lead. However, it’s still important to allocate enough budget to ensure that you’re appearing in relevant searches.
Here’s how to optimize your budget:
- Set Realistic Budgets: Be mindful of your budget allocation, especially in competitive industries. You want to ensure your business stays visible during peak times without overspending.
- Adjust Based on Performance: Monitor your lead volume and cost-per-lead (CPL). If you’re getting a lot of low-quality leads, consider adjusting your targeting or narrowing your service areas. If your ad performance is strong, increase your budget to capture more leads. You can use Google’s LSA platform to monitor performance regularly and make adjustments as necessary to maximize lead quality and minimize wasted spend.
- Review Cost Per Lead: Regularly check how much you are paying per lead. If your CPL is higher than expected, adjust your service area or re-evaluate your bids.
4. Use Specific and Relevant Service Areas
The more granular you can be with your service areas, the better. LSA ads rely on precise geographic targeting to connect businesses with customers who are close by and actively searching for services. Focusing on a specific service area can help ensure you’re not wasting your budget on irrelevant leads.
Here’s how to refine your service area targeting:
- Target the Right Radius: Be strategic about your location targeting. Focus on neighborhoods or areas where you know there is a high demand for your services. You can also keep track of which service areas generate the best leads and adjust accordingly over time to focus on the most profitable locations.
- Expand or Shrink Service Areas: If you’re receiving too many leads from a less relevant area, consider narrowing your service areas. Alternatively, if you're not getting enough leads, you might want to expand your radius.
- Monitor Competitor Activity: In highly competitive service areas, ensure your business is getting enough visibility. You might need to adjust your service area or bid more aggressively in areas where your competitors are also bidding.
5. Leverage the "Google Guaranteed" Badge
The Google Guaranteed badge is a trust signal that builds confidence in potential customers. This badge is only available to businesses that meet Google’s requirements for background checks, licensing, and insurance, and it is displayed on your LSA ads. So, remember to ensure all your necessary documentation is up-to-date and submit it to Google for verification to receive and maintain the Google Guaranteed badge. Businesses with this badge tend to get more clicks and higher-quality leads.
To obtain the Google Guaranteed badge:
- Complete Your Verification: Ensure your business passes the required background checks and certifications. This can include verifying your business license, insurance, and criminal background for service professionals.
- Maintain Compliance: Keep up-to-date with any certifications or licenses that are required to maintain the badge. Failure to comply could result in the badge being revoked, which could negatively affect performance.
6. Optimize for Mobile Search
Most users search for local services on their smartphones, so it’s essential to optimize your LSA campaign for mobile users. Google takes mobile-first indexing seriously, and your ad will perform better if your landing page and contact details are easily accessible on mobile devices.
Here’s how to optimize for mobile:
- Mobile-Friendly Website: If your LSA ad directs users to a website, ensure that it’s mobile-friendly. Google evaluates your website’s mobile experience when determining ad relevance. Review your LSA ad’s performance across both desktop and mobile devices. If you notice higher conversion rates on mobile, prioritize strategies to enhance your mobile experience.
- Mobile Call Extensions: Ensure that your business number is easy to click on, allowing users to contact you directly via phone from the ad.
7. Track and Analyze LSA Performance
To continuously improve your Local Services Ads, you need to actively track and analyze performance data. For example, you should set up goals in Google Analytics or your CRM system to track the true ROI of your LSA campaigns. Google also provides a dedicated LSA dashboard where you can see key metrics like lead volume, CPL, and customer feedback.
Here’s what to look at:
- Lead Quality: Monitor which types of leads are converting into actual customers. Adjust your targeting, keywords, and service areas based on lead quality.
- Conversion Metrics: Track how often your leads turn into booked appointments or actual sales, and use that data to fine-tune your campaigns.
Conclusion
Improving the performance of your Local Services Ads (LSA) requires a combination of strategic adjustments, diligent monitoring, and constant optimization. To succeed with LSA, it’s crucial to stay on top of your performance metrics, adjust based on data, and continuously provide great customer service. By doing so, your business will see improved visibility, higher-quality leads, and better overall campaign results.
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