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    SchoolGoogle Ads Without Wasting Money

    Chapter 8 of 10

    Local Services Ads and Google Maps

    Updated: · Leer este capítulo en español

    Local Services Ads are the boxes that can appear at the very top of Google for searches like "AC repair near me" or "dentist in Doral": a business name, a rating, sometimes a verification badge, and a button to call or message. They work differently from the Search ads in the rest of this book. You pay per lead instead of per click, Google screens the business first, and reviews and answering the phone matter as much as money. This chapter explains how they work at the time of writing, how they relate to Google Maps and your Business Profile, and how a local business can combine them without paying twice for the same customer.

    What Local Services Ads are

    Local Services Ads are a separate ad product from the Search campaigns covered in earlier chapters. According to Google's getting started guide, leads arrive as phone calls and messages sent through your ad, and in the US customers can also request a booking. You manage them from a leads inbox where you can reply to messages, track bookings and pause the ad when you are too busy.

    Three things make them different from everything else in Google Ads:

    • You pay per lead, not per click. Someone who looks at your profile and leaves costs nothing. Someone who calls or messages you does.
    • Google screens the business first. Before your ad runs with a badge, you go through checks that depend on your category and location.
    • There are no keywords. You choose your category, the job types you do and the areas you serve. Google decides which searches show your ad.

    They are only available for certain categories. At the time of writing, Google's US list includes many home services such as HVAC and plumbing, professional services such as lawyers and real estate, health categories such as dentists, and even several types of restaurant. Being on the list does not mean the product is available in your area, so check eligibility in Google's tool before planning around it. The list changes over time.

    The Google Verified badge and screening

    If you read older articles about Local Services Ads, you will see two badges: "Google Guaranteed" for home services and "Google Screened" for professional services. That has changed. Google's page About Google Verified badge explains that it simplified badging into a single Google Verified badge for all advertisers, and that it discontinued the Money Back Guarantee that came with the old Google Guarantee badge. So if a salesperson promises your customers a Google-backed money-back guarantee, ask them to show you the current terms.

    To earn the badge, a business passes Google's screening and verification. The checks vary by category and location and can include business registration or license, insurance, reviews and, in some categories, background checks of the owner and of the workers who go into customers' homes. Depending on the industry and location, Google also checks that your Google Business Profile is claimed by you and matched to the ad account.

    A few practical details from Google's help pages, as of this writing:

    • Pre-badge ads. In many categories you can start receiving leads after passing preliminary checks while you finish the rest. Those listings appear below providers who already have the badge.
    • Not every category gets the badge. Google notes that the badge is currently unavailable for auto, beauty and dining categories.
    • Health care has extra limits. Booking leads and pre-badge ads are not offered for health care verticals, and in the US call recordings and lead credits are not available for them either. For our example dental office in Doral, that changes how much it can rely on the product to sort good leads from bad ones.
    What pros do: they start the verification paperwork before anything else, and they gather license, insurance and worker information in one folder. Verification is where most new Local Services accounts stall, not the ads themselves. A business that has its documents ready can be live much sooner than one that searches for them when Google asks.

    How Local Services Ads rank: reviews and answering the phone

    Local Services Ads still use an auction, but money is only one part of it. Google's page About ad rankings lists three groups of factors:

    • Your bid. The most you are willing to pay for a lead. Google recommends letting it set bids automatically to get the most leads for your budget, and at the time of writing calls that mode "Maximize Leads."
    • How likely your ad is to produce a lead. This includes your responsiveness (missed calls can hurt), what the person is searching for, and how relevant your services and profile are.
    • Profile quality. Your rating, the number of reviews, your average response time, good photos and the verification checks you have completed.

    Two of those are things money cannot fix: reviews and answering. Google's getting started guide is direct about it: if you regularly fail to answer calls or respond to messages, your ranking may suffer. For our example HVAC company in Hialeah, that means the person who answers the phone on a July afternoon is as important to the ad as the budget. Turning on message leads also helps for the hours when nobody can pick up.

    Reviews for Local Services Ads are managed through your Google Business Profile, the same reviews people see on Maps. Asking every satisfied customer for a review is not a marketing extra; it is part of how this ad works.

    Which leads you pay for, and what happens with bad ones

    Google's page How leads work explains that you pay for valid leads, and describes what counts at the time of writing. Among them:

    • A call you answer, or a missed call you return and connect.
    • A missed call during your business hours where the customer stays on the line for more than 20 seconds.
    • A text message, email or voicemail from the customer.
    • A booking request, in the US and Canada.

    You set an average weekly budget, not a daily one. A single week can spend more than that average, but Google says you will never spend more than the monthly maximum (the weekly budget times the average number of weeks in a month). Once you reach it, the ad stops showing for the rest of the month unless you raise the budget. Follow-up calls from the same customer within 15 days are not charged again.

    What about bad leads: spam, wrong numbers, people looking for a job? Owners used to dispute them one by one. Today the process is largely automatic. Google says it filters out invalid activity before charging, then keeps reassessing charged leads and credits the ones its systems judge to be low quality. You can still rate each lead to give feedback. But there is an important change: at the time of writing, Google no longer gives credits for leads about a job type you do not do or an area you do not serve. That makes your settings the real protection. If the HVAC company does not install new systems, that job type should be off; if it does not go to Homestead, Homestead should not be in the service area.

    Local Services Ads vs Search ads

    Owners often ask which one to use. They answer different questions, and many local businesses that qualify run both.

    Local Services AdsSearch ads
    You pay forValid leads (calls, messages, bookings)Clicks, including people who never contact you
    TargetingCategory, job types and service areas; no keywordsKeywords, match types and negatives you control (see Match Types and Negative Keywords)
    Where people landYour Local Services profile, then call or messageYour own landing page (see Before You Spend a Dollar)
    Trust signalGoogle Verified badge, rating and reviewsYour ad text, assets and your page
    Setup effortVerification paperwork up front, then little to manageLittle paperwork, but ongoing work on keywords, ads and bids
    ControlLow: Google matches searches to your profileHigh: you choose searches, text, schedule and bids
    Available toOnly certain categories and areasAlmost any legal business

    A common pattern for eligible service businesses: Local Services Ads catch the "I need someone now" searches with a verified profile, and Search ads cover services, neighborhoods and Spanish searches that need more control, sending people to pages built for them. Keep an eye on the total: if both show for the same search, you may be paying to compete with yourself, which is why the next chapter insists on measuring leads by source.

    Google Business Profile and the Maps results

    Below the ads, Google usually shows a map with a few local businesses. That map pack is not an ad, and it is where a lot of local customers make their choice, especially for restaurants. It is fed by your Google Business Profile, the free listing with your name, address, hours, photos and reviews.

    Google is unusually clear about how it ranks these results. Its page Tips to improve your local ranking names three main factors: relevance (how well your profile matches the search), distance (how far you are from the person searching) and prominence (how well known you are, including reviews and links from other websites). The same page states, "There's no way to request or pay for a better local ranking on Google."

    That sentence matters when someone calls offering to "put you first on Maps" for a fee. What you can do is give Google complete, accurate information and earn real reviews:

    1. Claim and verify the profile, and keep the owner login in your own hands, not only with a vendor.
    2. Choose the most specific primary category and add secondary ones that are true.
    3. Keep hours exact, including holidays and storm closures. A customer who drives to a closed door does not come back.
    4. Add photos of the work, the team and the place. For the Cuban restaurant, photos of the actual dishes and the dining room do more than any slogan.
    5. Ask for reviews and answer them, in the language the customer wrote in. A thoughtful reply to a bad review is read by every future customer.

    Distance is the factor you cannot change. A dental office in Doral will rarely appear in the map pack for someone searching from Aventura, however good its profile. That is one place where paid ads help: they can reach people the free listing will not.

    Location assets and Performance Max for local businesses

    Two more pieces connect your ads to the map.

    Location assets

    If you link your Business Profile to Google Ads, your Search ads can show your address, distance and a link to directions. These location assets take their data from your Business Profile, and they can also let your ads appear in Google Maps. For businesses that want people to walk in, such as the restaurant or the dental office, they are a simple addition. One rule follows: fix your address, phone and hours in the Business Profile, because that is where the ads read them from. Writing Ads That Get the Click covers the other assets.

    Performance Max, briefly

    Performance Max is a campaign type in which Google's automation decides where your ads appear across its properties. Google announced its launch to all advertisers in November 2021 and said the older Local campaigns would be upgraded to Performance Max in 2022, which is why it now shows up in conversations about local advertising.

    The trade-off is control. You give Google goals, a budget, creative and audience signals, and it decides the rest. For a local business, the honest list looks like this:

    • It can reach people beyond Search, on other Google properties, which a small Search campaign never will.
    • It depends completely on good conversion tracking. If it is told to find "conversions" and those are weak signals, it will find more weak signals.
    • You see less about where your money went than in a Search campaign, although Google has added reporting over time.
    • It can overlap with what you already get, such as people searching for your business name who would have found you anyway.

    For most small local businesses, Performance Max is something to test after Search is working and measured, not a first step.

    Putting it together for a Miami business

    Here is how our three example businesses might combine these tools. These are illustrations of the thinking, not recommendations for any specific company; eligibility and costs depend on the area and change over time.

    Business (example)Business Profile and MapsLocal Services AdsSearch ads
    HVAC repair, HialeahComplete profile, photos of jobs, steady reviewsStrong candidate if eligible: urgent searches, pay per lead, badgeSpecific services, Spanish searches, ZIP codes the LSA settings miss
    Dental office, DoralEssential: patients compare ratings and distancePossible if available in the area; note the health care limits on credits and recordingsHigh-value treatments with their own landing pages
    Cuban restaurant, Little HavanaThe main channel: photos, hours, reviews, menuCheck eligibility; the badge is not available for diningA small campaign with location assets, for visitors and special dates

    Whatever the mix, the order is the same: a solid Business Profile first, because it feeds everything else; then the paid tools that fit your category; then measurement, so you know which one actually brings customers. That last step is the subject of the next chapter, Measuring Calls, Leads and Sales. If you are still deciding between paying for visibility and earning it, our guide Google Ads vs SEO in Miami compares the two, and our PPC management in Miami page explains how we handle paid campaigns alongside the free listing.

    Sources and further reading

    1. Getting started with Local Services Ads (United States) — Local Services Help, Google
    2. How leads work — Local Services Help, Google
    3. About Google Verified badge — Local Services Help, Google
    4. About ad rankings — Local Services Help, Google
    5. Tips to improve your local ranking on Google — Google Business Profile Help
    6. Performance Max campaigns launch to all advertisers — Google blog

    Key takeaways

    • Local Services Ads charge for valid leads (calls, messages, bookings), not clicks, and Google decides what counts as valid.
    • At the time of writing, Google uses a single Google Verified badge; the old Money Back Guarantee has been discontinued.
    • Ranking depends on your bid, your reviews and how reliably you answer. Missed calls hurt.
    • There is no way to pay for a better position in the Maps results; that comes from a complete, active Business Profile and real reviews.
    • Set service areas and job types carefully: Google no longer credits leads for jobs or areas you do not serve.

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