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Google Local Services Ads: The Complete UK Business Owner's Guide

Jessica Pridmore • December 20, 2024

At Social Media Time, we've helped countless local businesses improve their digital marketing strategy, and we're excited to share our expertise about one of the most effective tools for local service providers: Google Local Services Ads. If you're a UK business owner looking to attract more local customers, this comprehensive guide is exactly what you need.


Understanding Google Local Services Ads: The Basics

We've noticed that many local businesses struggle to stand out in Google search results. While traditional Google Ads and organic search optimisation are valuable, Google Local Services Ads (LSAs) offer a unique opportunity for service-based businesses to connect with local users more effectively.


What Are Local Service Ads?

Local Service Ads are specialised paid ads that appear at the top of Google search results, above both traditional Google Ads campaigns and organic search results. What makes these ads unique is their pay-per-lead model—you only pay when a potential customer contacts your business through the ad, whether through phone calls or message requests.


We've found that this approach is particularly beneficial for local service providers as it ensures your ad spend goes directly towards genuine leads rather than just website traffic.


Why Local Service Ads Work for UK Businesses

In our experience helping businesses across the UK, we've identified several key benefits that make Local Service Ads particularly effective:


The Google Guaranteed Badge

When you pass Google's screening process, your business receives the coveted Google Guaranteed badge. We've seen this badge significantly boost trust among potential customers. It shows that you're among the legitimate businesses that have undergone thorough background checks and met Google's strict verification requirements.


Prime Position in Search Results

Your ads are displayed at the very top of the search results page, giving you maximum visibility when local users search for the services you offer. We've observed that this premium positioning often leads to higher engagement rates compared to traditional search ads.


Pay Per Lead Model

Unlike traditional Google Ads that operate on a pay-per-click basis, Local Service Ads operate on a pay-per-lead model. This means you only pay when a potential customer contacts your business through the ad. We've found this particularly beneficial for managing your advertising budget effectively.


Setting Up Your Local Service Ads

We'll guide you through the process of getting started with Local Service Ads:


1. Business Registration and Verification

First, you'll need to create a Google Ads account specifically for Local Service Ads. We recommend having your business details ready, including:

- Complete business hours

- Service area coverage

- All the services you offer

- Business registration documents


2. Pass Google's Screening

To earn the Google Guaranteed badge, you'll need to:

- Complete background checks

- Provide proof of insurance

- Submit necessary licenses

- Verify business registration

- Pass Google's verification process


3. Configure Your Ad Settings

We recommend carefully setting up the following:

- Your weekly budget

- Service categories

- Business hours

- Service area

- Response time preferences


Managing Your Local Service Ads

Budget Control

We always advise our clients to start with a conservative weekly budget and adjust based on performance. The Google Ads dashboard makes it easy to monitor your ad spend and adjust as needed.


Lead Management

Through the Google Ads dashboard, you can:

- Track incoming leads

- Respond to potential customers

- Dispute leads that don't match your service criteria

- Monitor lead quality

- Track phone calls and messages


Building Trust Through Reviews

We've seen that satisfied customers' positive reviews significantly impact ad performance. We recommend:

- Actively requesting reviews from happy customers

- Responding to all reviews promptly

- Maintaining high service standards

- Building a strong reputation on your Google Business Profile


Key Differences from Traditional Google Ads

Understanding these distinctions helps optimise your digital marketing strategy:

Traditional Google Ads:

- Pay-per-click model

- Drives website traffic

- Requires ongoing keyword management

- Uses ad groups and campaigns

Local Service Ads:

- Pay per lead model

- Direct customer communication

- Location-based targeting

- Google Guaranteed badge

- Simpler setup and management


Costs and ROI

When it comes to Local Service Ads cost, we've observed that prices vary based on:

- Your service category

- Location competition

- Lead quality

- Service area size

While costs vary, we typically see leads ranging from £15-£50 each. The key advantage is that you only pay for qualified leads when potential customers actually contact you.


Maximising Your Success

Based on our experience helping many local businesses, here are our top tips:


1. Response Time Matters

We've found that quick response times to new customers significantly improve conversion rates. The faster you respond to leads, the more likely you are to win the business.


2. Service Area Optimisation

We recommend:

- Starting with a focused service area

- Gradually expanding based on performance

- Maintaining realistic coverage areas

- Considering seasonal adjustments


3. Lead Quality Management

To maintain good lead quality:

- Clearly specify your services

- Promptly dispute irrelevant leads

- Monitor lead patterns

- Adjust settings as needed


4. Integration with Other Marketing Channels

We suggest:

- Combining with traditional Google Ads when appropriate

- Maintaining your Google Business Profile

- Coordinating with other digital marketing efforts

- Leveraging Google Maps visibility


Industry-Specific Considerations

Different service categories have unique requirements and considerations. We've worked with various service professionals, including:

- Plumbers

- Electricians

- Legal services providers

- Home improvement contractors

- Cleaning services

- Property maintenance specialists

Each category has specific requirements for the Google Screened badge or Google Guaranteed status.


Common Challenges and Solutions

Based on our experience, here are some challenges you might face and how to address them:


1. Lead Quality Issues

Solution:

- Clearly define your services

- Promptly dispute inappropriate leads

- Monitor and adjust settings regularly


2. Budget Management

Solution:

- Start conservatively

- Track ROI carefully

- Adjust based on performance

- Monitor seasonal variations


3. Competition Management

Solution:

- Focus on service quality

- Maintain quick response times

- Build strong reviews

- Optimise service areas


Future of Local Service Ads

We're seeing Google constantly evolve its local ad offerings. Stay ahead by:

- Monitoring new features

- Adapting to changes

- Following Google partners' updates

- Maintaining verification standards


Making the Decision

Local Service Ads might be right for your business if:

- You're looking to attract more local customers

- You want qualified leads

- You prefer a pay-per-lead model

- You're willing to maintain high service standards

- You can respond quickly to new leads


Getting Started

Ready to explore Local Service Ads? We recommend:

1. Checking your eligibility

2. Preparing necessary documentation

3. Setting realistic budget expectations

4. Planning your response system

5. Establishing review collection processes


Conclusion

As experts in digital marketing strategy, we've seen Local Service Ads transform how many local businesses attract new customers. While they require initial setup effort and ongoing management, the pay-per-lead model and Google Guaranteed badge make them a valuable tool for service-based businesses in the UK.

Need help setting up or optimising your local service ads? Contact us at Social Media Time. We're here to help you attract more local customers and grow your business through effective digital marketing strategies.


Contact Us

Call Us: 07515880725

Email Us: info@socialmediatime.co.uk



Frequently Asked Questions About Local Service Ads

We've compiled answers to the most common questions we receive about Google Local Services Ads:

  • How much do Local Service Ads cost in the UK?

    We typically see costs varying between £15-£50 per lead, depending on your service category and location. Remember, you only pay when a potential customer contacts your business through the ad. Your ad spend is controlled by your weekly budget, which you can adjust based on your needs and lead volume.

  • Can I run Local Service Ads alongside traditional Google Ads?

    Yes! We often recommend running both. Local Service Ads excel at capturing immediate service needs, while traditional Google Ads campaigns can help build brand awareness and drive website traffic. They serve different purposes in your digital marketing strategy.

  • How do I know if my business qualifies for Local Service Ads?

    Google Local Services Ads are available for specific service-based businesses in the UK, including:


    • Plumbers
    • Electricians
    • HVAC services
    • House cleaning
    • Carpet Cleaning
    • Local shops 
    • Beauticians 
    • Moving services
    • Locksmiths
    • Home improvement contractors 
    • And much more 

    Contact us if you're unsure about your eligibility.

  • What's the difference between the Google Guaranteed badge and Google Screened badge?

    The Google Guaranteed badge is for home services businesses, while the Google Screened badge is typically for professional services. Both require passing Google's screening and verification process, but the Google Guaranteed badge offers additional protection for customers.

  • How long does the verification process take?

    In our experience, the verification process typically takes 2-3 weeks. This includes time for background checks, insurance verification, and business registration confirmation. We recommend starting the process early and having all documentation ready.

  • What happens if I dispute leads?

    When you dispute leads through your Google Ads dashboard, Google reviews each case. If approved, you'll receive a credit for the lead. We recommend disputing any leads that clearly don't match your service criteria or are outside your service area.

  • Can I control my service area?

    Yes! You can set and adjust your service area through the Google Ads dashboard. We recommend starting with a focused area and expanding based on performance and your capacity to serve local customers.

  • How do Local Service Ads appear on Google Maps?

    While Local Service Ads primarily appear at the top of Google search results, your Google Business Profile integration can help improve your visibility on Google Maps as well. This creates multiple touchpoints for potential customers to find your business.

  • What affects my ad's positioning?

    Several factors influence your position in local ads:


    • Proximity to local users
    • Number of positive reviews
    • Response time to leads
    • Business hours availability
    • Complaint history
    • Google Guaranteed status
  • Can I pause my Local Service Ads?

    Yes, you can pause and resume your ads anytime through the Google Ads dashboard. This is particularly useful for managing your advertising budget or during periods when you're at full capacity.


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