Are You OK with Commoditization?
At a recent chamber of commerce event, someone asked me about the difference between Google’s Local Services Ads (LSAs) and traditional Google Search Ads. More importantly, he wanted to know when it makes sense to use one versus the other.
That’s a great question, and I think the answer goes beyond advertising. It comes down to how you want to compete for customers.
What Are Local Services Ads?
Google’s Local Services Ads are a simplified way for service businesses to advertise. Instead of creating ads with headlines and descriptions, you create a profile that includes your business name, Google reviews, years in business, and contact information. And rather than paying for clicks, you pay for leads.
For someone searching for “plumbers near me,” Google may show several Local Services Ads at the top of the results.
Below the LSAs are the standard Google Ads. Can you see a difference? It has headlines, description (although their ad does not say much more than the LSAs), and sitelinks to other pages on their site. The difference may not seem significant, but I think it matters.
What Makes You Different?
With LSAs, prospective customers are presented with a handful of businesses that appear to offer the same services. They can compare reviews, ratings, and other basic information. But there is limited opportunity to explain why your business might be a better choice for them.
What if your plumbing company offers white-glove service, ensuring your technicians leave a home looking better than when they arrived? Or you have specialized equipment that allows you to locate leaks without opening walls? Those are meaningful differentiators, but they’re difficult to communicate through an LSA.
With traditional Google Search Ads, you have more control over your message. You can emphasize the things that matter to your ideal customers and then take them to a landing page that explains why they should choose you. You’re not just trying to get a lead. You’re trying to attract someone who appreciates what you do differently.
When LSAs Work… and When They Don’t
One of our home services clients has 38 locations along the East Coast. They’ve had success using Local Services Ads in the Northeast, where their pricing is competitive with other providers. But in Florida, the results have been very different.
The LSAs generate leads, but very few of those leads became customers. The company is less price competitive in those markets, and prospects aren’t seeing the reasons they might want to pay more. The ads were doing their job by generating inquiries. But those inquiries weren’t turning into much business.
That doesn’t mean LSAs are a bad advertising option. They can work very well for businesses with strong reviews, competitive pricing, and services that are relatively easy to compare. But they may be less effective when you need to explain why your services are worth paying more for.
How Do You Want to Compete?
If you’ve worked hard to build a business that offers something different, you want prospective customers to understand that difference. Otherwise, you risk becoming just another name in a list of businesses offering what appears to be the same service.
That’s the trade-off worth considering when deciding how to advertise.
Are your ads giving prospects a reason to choose you, or simply giving them another company to compare?
