Google Local Service Ads: A Game Changer for Contractors?


As a business owner, you may have come across various strategies to drive leads and generate revenue. One such innovative approach is Google Local Service Ads, which has emerged as a game changer for contractors. Let’s delve into how this new feature is changing the landscape of lead generation.

Google Local Service Ads, also known as Google Guaranteed Ads, appear at the top of search results for local services. For example, if you search for “kitchen remodeler near me in Los Angeles,” you’ll see these ads prominently displayed. Unlike traditional ads, Google Local Service Ads cut out the middleman, allowing contractors to buy phone calls directly from Google.

The unique aspect of these ads is the Google Guarantee, which ensures that businesses have passed background checks, possess valid licenses, and have the necessary insurance. Google even offers a limited money-back guarantee to customers if the contractor they recommended falls short of expectations. This provides customers with peace of mind and makes these ads more appealing.

By displaying only the call button and no website links, Google Local Service Ads aim to drive phone calls to businesses. Contractors pay for these calls, not clicks or impressions. Google records the calls, allowing businesses to monitor how their answering services are handling customer interactions.

Currently, Google Local Service Ads are available only in select areas and for specific services. However, they’re expected to expand over time. If you’re considering using Google or Facebook ads for your business, these local service ads may be worth exploring.

The minimum budget for these ads can be high, typically starting at $1,500. Nevertheless, contractors can pause or stop the ads whenever they want. The cost per call can range from $100 to $300, depending on the competition and market. It’s important to note that contractors pay per call, not per closed deal, making these ads comparable to services like Angie’s List.

The key advantage of Google Local Service Ads is that they deliver warmer leads. Unlike Angie’s List, where multiple contractors may call the same prospect, Google Local Service Ads connect customers directly to your business. As a result, these leads are more likely to convert.

In the future, we may see Google taking a more active role in the contracting process, potentially even acting as a general contractor and working directly with subcontractors. For now, Google Local Service Ads offer a promising lead generation strategy for contractors, providing an alternative to traditional ad campaigns.

What do you have to say about this?

Charles Kile

General Contractor at Kile Construction LLC
in Coeur d’Alene, Idaho.

Owner of Adapt Digital Solutions.

Charles Kile

Director of Marketing and Lead Gen at Adapt Digital Solutions.

Partner at NL Kile Construction LLC 

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