Google Local Services Ads vs. Google Search Ads: Key Differences Every Business Must Know!

In this episode, we dive into the key differences between Google Local Service Ads and Google Search Ads, specifically for home service companies. Discover how Google Local Service Ads charge you per lead, connecting you directly with potential customers, versus Google Search Ads, which operate on a pay-per-click basis, charging you for every click without guaranteeing a call or form submission.

We’ll break down how each ad type works, their unique benefits, and why understanding these distinctions is crucial for optimizing your marketing strategy. Whether you're new to Google Ads or looking to refine your approach, this episode will help you make informed decisions to get the most out of your advertising investment. Tune in to learn more!

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If you're interested in taking your Home Services business to the next level, online, visit LeadNurtureClose.com today and learn more about our services, and download our free Internet Marketing Checklist for home service contractors, discover what you can improve for your business online.  Also checkout our Marketing & Automation CRM

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Episode Transcript

Speaker 1 (00:00):
Today I wanted to talk about the difference
between Google Local Service Adsand Google Search Ads,
specifically for the homeservice companies.
Google Local Service Ads chargeyou per lead, meaning you're
only billed when a potentialcustomer actually contacts your
business directly from theGoogle Local Service Ad.
In contrast, google Search Adsoperate on a pay-per-click basis

(00:23):
.
Google search ads operate on apay-per-click basis, so you're
charged for every click.
That happens on your ad Doesn'tguarantee a call or a form
submission, so it's literallyevery time somebody sees your ad
and clicks on your ad you getcharged.
Versus the Google local serviceads, you get charged when a
lead contacts you Two differentthings.
So the biggest advantage withthat Google local service ads is

(00:51):
they connect you directly witha potential customer, usually on
the phone.
There is an option for leads toreach out via messages,
essentially like receiving adirect text from someone when
they're interested in yourservice from your Google service
ad.
So there's two unique,different types of Google ads,
and understanding thesedifferences is crucial for
optimizing your marketingstrategy and ensuring that
you're getting the most out ofyour investment.
I'm going to show you here thedifference on my screen.
Let's go ahead and dive intothat.

(01:11):
So, in this particular scenariohere.
I have a Google pulled up and Ityped in landscape design
Inglewood, co, for Colorado, andyou can see right here the very
first result.
It says sponsored, so you knowit's an ad.
A lot of people consumers mightmiss that and that's what
Google wants, because they'retrying to drive revenue for
their business through the ads.
And this particular here ispart of the Google local service

(01:35):
ads, or Google guaranteed, asyou see right here, so that it
is a pay per lead, meaning if aconsumer does a search and this
shows up and they click on, getthe phone number or message
that's going to connect the leadwith the business and then the
business is then charged for thelead.
This is part of the pay perlead model.
You see, it looks a lot likethe Google Maps down here, so a

(01:55):
consumer might think it's a mapfor their local area and go
ahead and click on one of these.
And that's the whole point isGoogle's rewarding the
advertisers by putting them kindof first and foremost and
trying to entice the consumer togo to these.
So this is a great way to gettop of page.
It's a pay per lead basis, butit's a really good way to get

(02:18):
leads coming into your business.
And then, if you scroll down alittle further, you'll see these
are the three maps.
None of these are sponsored orpaid.
And then you have your organic.
So, on the contrary, we havethe other version, which is
Google pay-per-click.
So you see here plumber repairElk Grove.
So you see a sponsored still,but this one does not look like

(02:39):
a maps listing.
This is actually just looksmore like a Google organic
results.
So the end consumer a lot oftimes they may or may not know
this is an ad, but a lot oftimes they still.
As long as the ad is enticingand it speaks to them, they'll
go ahead and click on it.
And then the business will getcharged the minute somebody
clicks on it.
It's a charge to them.
They don't get charged theminute, but it counts as a

(03:00):
charge.
So it's pay-per-click Doesn'tguarantee that when I click this
ad that I'm actually going tofill out a form or place a call
to the business.
So it's a numbers game.
So many clicks before itactually converts to a lead.
And so pay-per-click is adifferent model and the
pay-per-click is also based offwhat other businesses are
willing to spend it's.

(03:20):
You know you're up againstother businesses and you're
doing it on a bid basis.
So versus, the pay per lead isjust, you know, an actual lead
charge.
So a little bit differentbetween the two.
Now, if I scroll down a littlefarther, you'll see there's
three sponsored pay-per-clickads here.
This one is an organic, thisone happens to be Yelp.
Sometimes there's an organiclisting here, sometimes there's

(03:41):
not.
And then we have our mapslisting and then, oh, look at
that, you see another sponsoredin the map.
So you have your three organicmaps, which is what you usually
expect to see.
But there's an ad one here andthis is a part of the
pay-per-click or the search, theGoogle search ads.
So this is a pay-per-click.
If I click this, then it'scharging the business for the

(04:01):
click.
It's not part of the localservice ads, although it kind of
looks similar.
You'll see this here is underthe Google guarantee.
This is a Google local servicead.
This is a pay per lead modelhere.
If you come back over here,this is part of the pay per
click, the Google search model,right here.
So Google again is trying toentice the consumer to oh, this

(04:22):
is a map and click on it becauseit's in the first position, but
this is a an advertiser that'spaying to be in that first
position.
So this is why it's reallyimportant for Google ads, google
local service ads, googlesearch ads, the pay-per-click
any of them for for you to bepart of your marketing strategy,
because it's a great way to getsome market share and getting

(04:43):
up there somewhat quickly.
Yes, it's pay to play, it is apaid advertising strategy, but
it is a great way to capture themarket share, depending upon
what your goals are.
If you scroll down here, you'llsee this is now part of the
organic listings, but there'susually ads sometimes presented
after all of the organiclistings, as you see right here
sponsored, sponsored, sponsored.

(05:03):
So, depending upon how yourcampaigns are structured and set
up and what you're willing tospend in your budget, and all
that because you're competingagainst everybody else that's
going after the same keywords aspart of the Google search ads
will depend on where you show up.
You do still get clicks fromhere.
You don't necessarily alwayshave to be in the first position
and in fact, sometimes there'sstrategies behind.

(05:24):
You know where consumers areclicking and so sometimes you
can put yourself in differentpositions and still get a pretty
good result by paying less.
But the point of this particularvideo here is to make sure that
you understand there is adifference between Google local
service ads and Google searchads or pay-per-click.
There's a difference in how theleads come to you and there's a

(05:45):
difference on how you'recharged.
Which one do you do?
I recommend both.
If you have the budget Again,it's putting yourself out in
front of the consumers that arelooking for you, and so if it's
matching your particularkeywords, that's going to
acquire the customers thatyou're wanting to get, then you
want to make sure you're puttingyourself everywhere.
Again, this is a pay per leadmodel, so it doesn't mean every

(06:07):
lead is going to convert into anactual customer, but you're
skipping a step by alreadygetting them as a lead, and so
you're paying a little bithigher of a price to get the
lead versus going through theclicks to try to get them to
convert to a lead.
So it's kind of very similar.
It's just like kind of you know, one's click to a lead and then
you're trying to convert somany clicks or click to a
pay-per-click.

(06:28):
Is that charge for a click?
And then you're trying toconvert so many clicks or click
to a pay-per-click.
Is it charged for a click andthen so many clicks to become a
lead versus a pay-per-lead.
You're already getting thatcall.
Now you know there's still anumbers game for converting
those to sales on both scenarios.
But again, as you see, theplacement is different and it's
to a consumer.
You know, maybe they're used toliking the maps and getting
from the maps and Google willvary this.

(06:52):
So it depends on the market.
So sometimes it may not pull upa Google local service ad like
this.
As you see here.
This one didn't.
There is no Google localservice ad here, but there is
here.
So, depending upon the market,depending upon a lot of
different factors, google willput things in different places
and they test things out indifferent markets.
So it's not always exactly thesame layout and look of this,
but the concept is the same.

(07:13):
Also, the Google Guaranteed orthe Google Local Service ads
have requirements behind it.
You have to become verifiedwith Google, meaning they do
like a background check and theydo a insurance check.
There's steps that you have todo in order to even become a
verified advertiser to be inpart of the pay-per-lead or
Google local service ads.
So my recommendation is, if youcan do both, get in the Google

(07:34):
local service ads because, again, it doesn't show up for every
keyword and so for thosekeywords you want to be as part
of the pay-per-click, like inthis.
So you want to be able to tryto be in both mediums and
capture as much market sharefrom both places as you can.
So it's important to make sureyou're taking your paid ads
budget and strategically puttingthem across the places and

(07:55):
again, it's going to depend onyour budget and your goals and
how much of a gap that you'retrying to get from point A to
point B, and these are just twodifferent ways in the Google ad
space to try to get there.
So hopefully this helps,hopefully this gives you an idea
between the two, and if you areinterested in how to even get
started on either one or both,we would love to help.
Feel free to reach out.
We can have a conversation andconnect.

(08:16):
Feel free to connect with ourYouTube channel or other
podcasts or wherever you'rewatching or listening to this.
We do put out a lot ofeducational content, not only
around Google ads and paid ads,but pretty much anything digital
marketing as well as businessand anything to kind of help
your home service company growand go to the next level.
Again, I'm Don Franklin withLeaner to Close Web Marketing.

(08:37):
Until next time, have a blessedday.