How to Get Immediate Leads with Google Local Service Ads

Today, we’re diving into Google’s Search Engine Results Page (SERP) and discussing how to get immediate leads through a Pay-Per-Lead (PPL) model. This strategy is just one “spoke” in the wheel of the comprehensive funnel we use to help home service businesses grow.

If you’re ready to learn more about this game-changing ad model—Google Local Service Ads (LSAs)—keep reading!

What Are Google Local Service Ads?

Google Local Service Ads are a relatively new advertising model rolled out by Google about a year ago. Unlike traditional Pay-Per-Click (PPC) ads, where businesses pay for each click on their ad, LSAs operate on a Pay-Per-Lead basis.

With LSAs:

• You only pay when a potential customer contacts you (via call or message).
• Leads are pre-screened, which improves lead quality.
• Google’s “Google Guarantee” badge builds trust with potential customers.

Example: Carpet Cleaning in Chantilly, VA

Let’s say someone searches for “Carpet Cleaning Chantilly Virginia.” At the top of the search results, you’ll see a section with LSAs. Businesses listed there don’t pay for views or clicks—they’re only charged if a customer takes action (e.g., calls or books a service).

This model ensures your ad dollars directly connect to potential customers, offering an immediate return on investment.

How Does the Traditional Bid Model Differ?

Before LSAs, businesses used PPC campaigns in Google Ads:

1. You bid on keywords to rank high on the SERP.
2. You pay each time someone clicks on your ad, even if they don’t convert into a lead.
3. Costs depend on competitive bidding and ad relevance.

While PPC can still work for some businesses, LSAs simplify the process by charging a flat fee per qualified lead.

Setting Up Google Local Service Ads

Prerequisites:

1. Google My Business (GMB):

• Create and verify your business listing.
• Make sure your contact details, service categories, and reviews are up-to-date.

1. Google Guarantee:

• Google conducts a background check on your business and employees.
• Once approved, your business earns a “Google Guaranteed” badge, which enhances customer trust.

Steps to Launch LSAs:

1. Visit ads.google.com/localservices.
2. Enter your ZIP code and service category.
3. Select your monthly budget and set the number of leads you want to generate.
4. Submit your application and wait for approval.

Understanding Lead Costs

Lead costs vary depending on your industry and location. You can calculate estimated lead prices for your area by visiting Google’s Local Service Ads Cost Tool.

For example:

• Carpet Cleaning in Chantilly, VA:
• Leads cost: $23–$35 per lead.
• Monthly budget: $230–$350 for 10 leads.

Cost-Effectiveness Analysis:

Let’s say:

• Your average job ticket is $500.
• Lead cost: $25.
• You close 50% of your leads.

With these numbers:

• You’re spending 5% of your revenue to acquire a lead.
• If you close half, you’re getting 2 clients for every 4 leads, translating into $1,000 in revenue for a $100 investment.

Key Benefits of LSAs

1. High-Quality Leads:
   Google’s pre-screening process ensures leads are relevant, improving your closing rate.
2. Call Tracking and Recording:
   All calls are recorded, so you can monitor quality, track ROI, and follow up on missed calls.
3. Simple Setup:
   Aside from a Google My Business profile and background check, setup is straightforward.

Real Results

At Phlash Consulting, our clients have seen fantastic results using LSAs. Closing rates range from 50% to 75%, and the cost per lead often falls well below traditional PPC campaigns. LSAs have quickly become a key part of our strategy for generating immediate and sustainable growth for local service businesses.

If you’re just starting out or looking for a cost-effective way to drive leads, Google Local Service Ads are an excellent option. Once set up, they provide a steady stream of qualified leads, ensuring your advertising dollars work hard for you.

See you in the next post!