Google Local Services Ads (LSA) and Google pay-per-click (PPC) ads are prevalent advertising formats for businesses seeking to engage their target audience, boost conversions, and expand their operations. This article delves into the nuanced differences between Google LSA and Google Ads to assist businesses in making informed decisions about their advertising strategies.
Understanding the distinctions between these two ad types is crucial for selecting the most suitable option for your business. We will dissect the characteristics of each ad format to provide you with a comprehensive overview:
– What Constitutes Local Service Ads?
– What Is Google Ads?
– Key Differences Between LSA and PPC Ads
– Which Option is Superior: LSA or Google Ads?
Continue reading to gain further insights!
Local service ads are designed to appear at the forefront of search results when users search for services based on their location. Similar to other ads, they carry a “Sponsored” label and are prominently featured on Google Maps. Consider the example of real estate agents in Harrisburg, PA:
[Image: Screenshot of LSA for “real estate agent in Harrisburg”]
Google Ads, on the other hand, is a versatile advertising platform that enables businesses to position their websites at the top of search results. These PPC ads can be found at the top of search engine results pages (SERPs), within Google Maps, at the bottom of pages, and in various other locations.
[Image: Table comparing LSAs and PPC ads]
LSA and PPC ads differ in their approach and execution. Below, we explore the primary differences between the two.
One of the first distinctions to consider is the payment model and cost associated with each ad type.
– Bidding Strategy: PPC ads are charged per click, whereas LSAs operate on a pay-per-lead (PPL) basis, meaning you only pay when a lead converts.
– Cost: LSAs tend to be more expensive, with an average cost-per-lead (CPL) of $87.36 in the real estate sector, compared to a cost-per-click (CPC) of $2.10 for PPC ads. However, this higher cost reflects the higher conversion readiness of leads acquired through LSAs.
Keyword targeting also varies between the two ad types.
– Keyword Research: For Google Ads, businesses must conduct their own keyword research, while Google handles the keyword research for LSAs, which are primarily location-based.
– Customization: Google Ads offers more customization in keyword targeting, with variations in cost, traffic, volume, and number of keywords compared to LSA.
LSAs are tailored to target local buyers with immediate service needs, placing your business in front of potential customers in your area. Conversely, Google Ads has a broader reach, catering to a wider audience and needs, such as advertising shoes in various locations and targeting different stages of the buyer’s journey.
Placement options for Google Ads include:
– Search ads
– Display ads
– Shopping ads
– YouTube ads
LSAs, however, are exclusive to the top of search results, relying on location-based keywords and appearing for users researching companies within their area.
LSAs also offer unique verification badges, such as “Google Guaranteed” and “Google Screened,” which enhance credibility and provide users with additional security.
LSAs are ideal for local service providers, while Google Ads is better suited for creating a diverse range of advertising options. Both can benefit your business and increase traffic, but they serve different purposes.
To determine the best option for your business, consider your target audience and location. If you cater to a local clientele, LSA may be the ideal choice, while businesses without a strict location focus can stick to Google Ads.
With a thorough understanding of both ad types, you can evaluate your business needs and choose the most effective advertising strategy. If you require assistance, WebFX can help you select the right ad campaign and provide a team of professionals to guide you through the process.
Our team of 150+ Google Ads-certified experts can help you achieve your business goals, whether through PPC ads or local service ads. Contact us online today to receive a free, no-obligation quote and take the first step towards improving your ROI!
