For businesses aiming to expand, both Google Local Services Ads and Google Ads present remarkable opportunities to generate high-quality leads. However, determining the more advantageous choice for your specific business depends on your objectives. Let’s look into the advantages and disadvantages of each platform, providing you with insights to make an informed decision on whether Google Local Services Ads or Google Ads represents a more favorable marketing investment for your enterprise.
Overview of Google’s Local Services Ads and PPC Ads
Google Local Services Ads facilitate connections with individuals searching for services on Google that align with what your business offers. These ads secure a prime position at the top of the search results for users in your geographical area. Notably, customers are exposed to your business name and Google Business Profile (formerly Google My Business) rating.
On the other hand, Google PPC Ads also target users seeking services on Google. These ads appear at the top of the search results, positioned below Local Services Ads. In contrast to Local Services Ads, PPC Ads grant you the ability to craft a concise description of your business and the services you provide.
Advantages of Google Local Services Ads
LEAD DISPUTES
Dissatisfied with an unqualified lead from Local Services Ads? No worries— you have the option to dispute it and receive a refund from Google. Utilizing the platform’s inherent features, you can systematically review each call and contest any call that aligns with Google’s specified dispute categories. To illustrate the significance of this advantage, Blue Corona, on average, successfully recovers 15% to 20% of our clients’ monthly Local Services budget through lead disputes, resulting in substantial annual savings amounting to hundreds of thousands of dollars.
Cost-Effective LEADS
A notable advantage of Local Services Ads is the adoption of a pay-per-lead model for charging. This translates to a reduced cost per lead when juxtaposed with the pay-per-click model employed by Google Ads. Although the specific cost per lead varies across industries, the general trend suggests that, on average, Local Services Ads enable the generation of more affordable qualified leads compared to Google Ads.
USER FRIENDLY
In the midst of a hectic schedule, finding the time required to optimize results can be challenging. Google has addressed this by designing Local Services Ads to be user-friendly and straightforward. While there are still essential tasks to monitor, once the initial setup is complete, there is less ongoing maintenance compared to Google PPC Ads. The latter demands constant attention to maximize performance and minimize unnecessary ad expenditures.
Disadvantages of Google Local Services Ads
FACTORS INFLUENCING RANKINGS
Achieving a position among the top three businesses prominently displayed is contingent upon key ranking factors, predominantly reviews and location. If your business lags in the number of reviews compared to competitors, you may struggle to generate sufficient qualified leads, hindered by being outranked. Similarly, in a large city, if a homeowner searches for your service from a distant location, your business may not be featured due to proximity, with closer competitors taking precedence.
CONTINUOUS OPTIMIZATION
Optimizing ads for optimal performance is pivotal in the realm of advertising. While Local Services Ads heavily rely on automation, certain desired features typically found in an advertising dashboard may be absent. This shortfall can result in a decrease in qualified leads or, potentially, a reduction in the customer base.
GOOGLE SCREENING
Commencing with Local Services Ads requires businesses to undergo rigorous background and license checks administered by the platform. This process, although essential, is time-consuming and may pose challenges for certain businesses, especially if their services are not already listed within Local Services Ads.
Advantages of Google PPC Ads
ADDRESSING CUSTOMER INTENT
Frequently, your ideal customer is actively searching for a specific service within your offerings. Google PPC Ads allow you to customize your ad copy to align with the user’s intent, complemented by the creation of a dedicated landing page on your website specifically tailored to that particular service.
EFFECTIVE BUDGET MANAGEMENT
For those concentrating on securing more of a particular type of job, the ability to allocate budgets for each service offered is a valuable feature. Additionally, you have the flexibility to exclude specific keywords or phrases that do not align with the objectives of your campaign and, by extension, your business goals.
UTILIZING ADVERTISING DATA
If you find yourself falling short of the desired lead generation numbers and are uncertain about the reasons, the Google Ads dashboard provides a comprehensive data analysis tool. This allows you to delve into the campaign data, identify areas for improvement, and implement changes that will enhance lead generation. Notably, such a data repository is not present within the Local Services platform.
Disadvantages of Google PPC Ads
REQUIRES TIME AND SKILL DEVELOPMENT
Mastering the nuances of running PPC ads through Google Ads demands a comprehensive understanding of key elements. Instances may arise where you find yourself puzzled, unsure of the next steps to take. In the absence of sufficient time and experience, navigating through potential learning curves may incur financial costs.
DIVERSE MARKETING APPROACHES
Given that this platform is not heavily automated, there exists a multitude of strategies available for experimentation within your campaigns. While this versatility is advantageous for optimizing your ads, it can, at times, present challenges in determining the most effective approaches for advancing your business goals.
COMPETITIVE DYNAMICS
While the ability to bid on competitors’ names is advantageous, it introduces a reciprocal scenario where competitors can bid on your business name as well. One drawback of Google PPC ads is the escalating costs driven by competitiveness. Whether it pertains to a generic search term or your brand name, the cost-per-click experiences a gradual increase year over year due to heightened competition.
In Summary, Google Local Services Ads vs. Google PPC Ads
Google Local Services Ads offer cost-effective leads and provide a mechanism to reclaim funds spent on unqualified leads. Nevertheless, the impact of Google’s ranking factors may limit lead generation for businesses, leaving minimal room for adjustments. On the other hand, Google PPC Ads excel in market domination and allow for the creation of tailored ads for your target audience. However, the learning curve associated with mastering the platform may lead to budgetary challenges as you navigate the intricacies of the system.
Conclusion: Determining the Better Option Is Better?
Opting for Local Services Ads is advisable if your Google Business Profile boasts a substantial number of positive reviews and a high ranking, and your primary objective is to acquire more leads at a reduced cost. On the other hand, if your goal is market dominance, greater advertising control, or if your business has fewer reviews compared to competitors, Google PPC Ads emerge as a more fitting choice.
In many instances, an optimal strategy for your business involves advertising on both platforms. Utilize Local Services Ads to generate cost-effective leads, leveraging the opportunity to dispute unqualified leads and maximize your budget. Simultaneously, employ Google PPC Ads to assert market dominance, targeting specific customer demographics for optimal results.