Google Ads for Local Service Businesses: A Plain-English Guide
Google Ads can be the fastest way for a local service business to get more calls. It can also burn money fast if it's set up wrong. Here's how it works, in plain English.
By Eva Lockwood, Lockwood Marketing
How Google Ads works
When someone searches Google for something like "emergency plumber near me," the top results are often ads. Businesses bid on the searches they want to show up for, and Google decides which ads to show based on the bid and how relevant and useful the ad is. You pay when someone clicks your ad, not when it's shown.
For local businesses, the most valuable searches are the ones that show someone is ready to hire, like "roof leak repair" or "AC not cooling." Those are worth paying for. Searches like "how to fix a leaky faucet" usually aren't.
Search ads vs. Local Services Ads
Search ads are the regular text ads at the top of Google. You choose the keywords, write the ads, and pay per click.
Local Services Ads appear above search ads for many home service categories and show a "Google Guaranteed" or "Google Screened" badge. You pay per lead instead of per click, but you have less control over targeting. Many contractors run both.
What it costs
There are two costs: your ad spend, which you pay directly to Google, and any management fee if you hire someone to run the campaigns. Click prices depend on your trade and your market. Emergency services and competitive cities tend to cost more per click.
Most local service businesses start somewhere between $1,000 and $3,000 a month in ad spend. Starting with too small a budget makes it hard to collect enough data to tell what's working.
The mistakes that waste the most money
- Broad keywords with no negatives. Without a list of blocked searches, you'll pay for job seekers, DIYers, and people in other cities.
- Sending ads to your homepage. A focused page for the exact service converts much better.
- No call tracking. If you can't see which ads make your phone ring, you can't improve them.
- Set it and forget it. Campaigns need regular attention: new negative keywords, bid changes, and ad tests.
How to tell if it's working
Ignore clicks and impressions on their own. The numbers that matter are calls and form leads, cost per lead, and ultimately booked jobs. If you know roughly what a new customer is worth to you, you can tell quickly whether your ads are profitable.