Digital advertising can be overwhelming and a little confusing, especially with all the different platforms available. In this blog, we are going to break down two major platforms, Google Ads and Google Local Service Ads, and the differences between them. 

In short, Google Ads primarily operates on a Pay-Per-Click (PPC) model, where advertisers pay based on the number of clicks their advertisements receive. On the other hand, Google Local Service Ads, often referred to simply as LSAs, utilize a Pay-Per-Lead (PPL) model, meaning advertisers pay when they receive leads, such as calls or messages, from potential customers.

Google Ads

Pay-Per-Click

Google Ads is a Pay-Per-Click (PPC) platform. PPC is a digital advertising model used to direct traffic to websites, in which an advertiser pays when the ad is clicked. Here’s how it generally works:

Campaign Creation: Advertisers choose a campaign type based on their goals, like increasing website visits, generating leads, or driving sales.

Targeting: Advertisers can target specific audiences based on demographics, interests, search behaviors, and more. Location targeting allows ads to be shown in specific regions, countries, or even within a certain distance from a business.

Bidding: Advertisers set bids for how much they’re willing to pay per click on each ad. This can be done manually or automatically with Google’s AI-driven algorithms that optimize bids for the best possible results.

Ad Creation: Advertisers create ads that include text, images, or both, depending on the ad format. These ads can also include enhancements like additional links, phone numbers, or location information.

Performance Tracking: Google Ads offers comprehensive tools to track how your ads are performing. You can see how many people see your ads, click on them, and take action on your website.

Benefits of Google Ads

Using Google Ads can provide several benefits:

Extensive Reach: Google’s vast network allows advertisers to reach a broad audience across the globe or target very specific niche markets.

Flexibility: Campaigns can be tailored with various ad formats and targeting options to meet specific business needs.

Measurable ROI: Detailed analytics help measure the effectiveness of each ad and campaign, allowing for better decision-making and budget allocation.

Control Over Costs: Google Ads allows you to control how much you spend by setting daily maximums for your campaigns.

 

Google Ads is a powerful tool for businesses looking to enhance their digital marketing efforts, providing flexibility, extensive reach, and effective targeting options to maximize return on investment.

Types of Ads

With Google Ads, advertisers can display ads, product listings, and service offerings across Google’s vast network, including its search engine, mobile apps, videos, and other websites. 

Search Ads: These are text ads that appear on Google search result pages. For example, when someone searches for a specific product or service, your text ad can appear above or below the organic search results.

Display Ads: Display ads appear on a vast network of websites across the internet, not just Google-owned properties. These can be in the form of images, banners, and more, and are targeted based on user behavior, demographics, and content of the website.

Video Ads: These ads appear before or during YouTube videos. They can also be displayed on other video partner sites within the Google Display Network.

Shopping Ads: Shopping ads display and promote specific products, including their prices. These ads appear in Google Shopping (in select countries), next to search results, and near text and responsive ads.

App Ads: These are ads that promote apps across Google’s entire suite of services like Google Search, Google Play, YouTube, etc. They are designed to drive app installations and engagements.

Google Local Service Ads

Pay-Per-Lead

Google Local Service Ads (LSAs) are a type of advertising designed specifically for local service providers to connect directly with customers in their area. LSAs are a pay-per-lead (PPL) platform. PPL is an online advertising pricing model where the advertiser pays a set fee for each lead generated from their advertisements. A “lead” typically refers to the collection of contact information from a potential customer who has expressed interest in the advertiser’s product or service. Here is how LSAs work:

Verification and Setup: Businesses must undergo a verification process to participate in LSAs. This includes background checks, license checks, and insurance checks, depending on the industry and location.

Ad Display: Once verified, businesses can create a profile that includes details about their services, business hours, and service areas. These ads appear at the top of Google Search results when people search for relevant local services. For instance, if someone searches for “emergency plumber near me,” a local service ad for plumbers in that geographic area might appear.

Pay-Per-Lead: Unlike traditional pay-per-click models, LSAs operate on a pay-per-lead basis. Businesses are charged not for clicks but for direct leads such as phone calls or messages through the ad.

Benefits of Google Local Service Ads

This platform is particularly beneficial for businesses such as plumbers, electricians, locksmiths, HVAC technicians, and other similar services. Here are some of those benefits:

Visibility: LSAs appear above traditional Google Ads and organic search results, giving businesses prominent visibility in Google Search.

Trust: The Google Guarantee associated with LSAs can significantly enhance trust and credibility among potential customers.

Cost Efficiency: Paying only for leads rather than clicks ensures that the advertising spend is directly tied to potential customer engagement.

Key Features of Google Local Service Ads

Google Local Service Ads offer a unique opportunity for local service providers to effectively reach their target audience, manage leads, and build their business reputation with the backing of Google’s trust signals. 

Google Guarantee: Businesses that pass Google’s screening process receive a Google Guarantee badge, which appears on their ad. This badge helps build trust with potential customers, as it indicates that Google backs the services provided, offering to refund customers up to a project limit if they aren’t satisfied with the quality of work.

Local Targeting: LSAs are highly targeted to the service area of the business, making them more relevant to search users who are looking for specific services in their local area. This targeting helps increase the likelihood of conversions.

Ranking Factors: The ranking of LSAs is determined by a combination of factors including proximity to the user’s location, review score and the number of reviews, responsiveness to customer inquiries and requests, and the business hours.

Simplified Management: Google provides a streamlined dashboard for managing leads, tracking performance, and adjusting advertising spend.

Both Google Ads and Google Local Service Ads offer distinct advantages depending on your business type and objectives. By understanding the key features of each, you can better align your advertising strategy with your overall business goals, ensuring that every dollar spent on advertising is an investment towards your business growth. Whether you choose Google Ads for its versatility and global reach or opt for Local Service Ads for its local specificity and direct leads, both platforms provide powerful tools to enhance your online presence and drive business success.