A comparison guide between Google's Local Service Ads and Search Ads.
You may be familiar with Google advertising. But do you know the difference between Google Local Service Ads vs. Search Ads? With many types of Google ads available, navigating which ones are best for your business can be challenging.
Below is a comparison guide on LSAs and Search Ads and when to use each based on your advertising needs.
Google LSAs are ads specifically designed for local service-based companies or those with location-specific products. Previously known as Google Adwords, LSA ads promote your business to target audiences in your surrounding areas.
Local service-based industries, like landscaping, electricians, and HOA housing development fencing contractors, are examples of businesses that can use LSA ads.
On the other hand, Google Search Ads can be used for any business, not just local ones. Also known as paid search or pay-per-click (PPC), it’s a type of search engine marketing (SEM). They’re designed to advertise your website or specific web pages to your audiences with search queries they use that are relevant to your company.
While LSAs and Search Ads share some similarities, there are differences to understand before you invest in ad budgets.
Another key difference between LSAs and Search Ads is their ad locations. LSA ads are placed above the SERPs and in Google Maps. They align your SEM and local SEO marketing strategies to advertise your business and generate leads from hyper-local audiences.
Search Ads require keyword bidding for your ad to be placed at the top of the SERPs as a “Sponsored” search result. While they also align SEM and SEO, it’s not hyper-localized compared to LSA ads and is placed first in SERPs (with keyword bidding), not above them.
Since Search Ads require higher budgets for keyword bidding to outrank competitors and be in the first spot within the SERPs, it may not be practical for businesses with lower ad budgets and local search needs. They’re best if your ad campaign goals are to increase online visibility for broader audiences and can afford competitive keyword bidding.
LSA ads are best if you want a guaranteed above-SERP placement for local audiences only without the larger budget requirements for keyword bidding.
A main differentiating factor between Local Service Ads vs. Search Ads is their payment structures.
As mentioned above, Search Ads use a pay-per-click (PPC) model, where you’re charged each time a user clicks on your ads.
LSAs ads use a pay-per-lead model, where you’re charged each time someone contacts your business through your ad. LSAs are typically more affordable and generate greater ROI because many users can click on Search Ads and not contact you, and you still must pay for them.
Based on their different payment methods, choosing between LSAs and Search Ads depends on your ad budget and campaign goals.
If you’re a locally based service provider and want to attract customers in your area, LSA ads are more cost-effective. You only pay for the leads you acquire, and you can even set a weekly budget to stop showing your ads after reaching your limit.
Search Ads are the better option if you want to increase brand awareness for wider audiences outside your area, bigger ad budgets, and easier campaign scalability.
The Google Guarantee badge is an exclusive feature for LSA ads. When you display your LSAs, a green checkmark is displayed next to your business name. This feature is valuable for consumers because it shows that your company has passed Google’s screening and verification process.
If consumers aren’t satisfied with your localized services, they can submit a refund request, and Google will reimburse them based on potential factors. Service cancellations and delayed provider responsiveness are examples of when Google won’t reimburse consumers.
However, it gives your target audiences better peace of mind when your brand establishes its credibility and trust with Google.
When creating Local Service Ads vs. Search Ads, there are also exclusive automated keyword research features, depending on which one you choose. LSA ads do keyword research for you, while Search Ads require you to do it yourself.
For LSAs, Google will generate target keywords based on the information you enter upon setup. After you submit your business type and products/services from their list of options, they’ll prompt suggested keywords to use in your LSAs that you should rank for.
However, you must verify that the keywords Google provides for your LSA ads apply to your brand. If the search queries they automate have the wrong search intent or are irrelevant to your business, they may not generate the right ad results or qualified leads.
Because Search Ads require you to perform keyword research, you gain more control over which search queries you target in your campaigns. However, you must understand how to conduct keyword research the right way.
Again, if you use inapplicable search queries for your brand or keywords with the wrong search intent, you may not generate profitable ROI for your Search Ads.
Did you know LSA ads don’t require you to write copy? These types of Google ads only display your Google Business Profile name, contact information, business hours, review ratings, and image.
In contrast, Search Ads require copywriting. You’ll decide on the ad’s title, body text, visual creative, and call-to-action button.
If you prefer customized ad campaigns, Search Ads are the best option because you can control the copy’s quality and what’s displayed to your broader audiences. If you prefer simpler ad campaigns to local audiences and have a strong reputation management on your Google Business Profile, LSAs can be the better choice.
LSA ads are only available for specific local businesses, industries, and job roles. Not every company can access them due to Google’s specific LSA ad qualifications.
Examples of eligible businesses for LSA ads include:
Search Ads don’t require industry eligibility, allowing any business to access this ad platform.
Still can’t decide if Local Service Ads vs. Search Ads are better for your business? Don’t take a leap of faith with your ad budget. Let us help you navigate Google’s comprehensive ad platforms for you.
At Reach Marketing Pro, we have extensive experience with Google advertising, including LSAs, PPC, and SEM, and aligning these campaigns with your SEO for optimal results.
We also have in-house copywriting and graphic design services to create effective ad campaigns for you. Our team will continuously monitor your ads with monthly in-depth reporting to measure success with complete transparency from start to finish.
Ready to maximize your Google ad campaigns?
Learn more about our SEM/PPC services, or contact us for any questions today!
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