Managing your Google Local Services Ads (LSA) budget effectively is an important part of maximizing your business’s online presence and generating quality leads. A well-structured budget not only helps make sure you spend within your means but also guarantees that your investment translates into tangible results.
With an experienced team specializing in the intricacies of Google Guarantee and LSA, Real Time Marketing outlines how to allocate your budget wisely to minimize inefficiencies and drive sustainable growth for your business.
How LSAs Charge for Advertising
As opposed to pay-per-click (PPC) advertising, Google local campaigns utilize a cost-per-lead (CPL) pricing model. This means that you only pay when a potential customer contacts your business through the LSA platform, whether it be by phone or message. The cost per lead varies depending on your industry and location, but Google sets a maximum cap to ensure you don’t overspend.
Additionally, LSAs operate on a weekly budget system. Google will then divide the spending evenly throughout the seven-day period, so your ads are displayed for as much time as possible within your budget.
Set a Realistic Weekly Budget
As mentioned, LSAs allow businesses to set a weekly budget, which helps control spending. However, setting the budget too low can limit visibility, while setting it too high may cause unnecessary expenses. A realistic budget should be based on the average cost per lead and the number of leads a business wants to receive. Keep in mind that competition and seasonality can also impact local lead generation volume and cost.
One way to determine a suitable budget is by looking at your past advertising efforts and reviewing performance data. If you have previously invested in PPC or other forms of online advertising, use that as a baseline to estimate how much you would typically spend to get the desired number of leads. If this is your first time advertising online, however, it’s best to start with a conservative budget and increase it gradually based on your outcomes.
Use the Right Business Categories and Service Areas
Business categories help define what services you offer, making certain that your Google Guaranteed ads are shown to relevant prospects actively searching for those services. Selecting overly broad or unrelated categories can lead to wasted ad spend and low-quality leads. Instead, focus on precise, relevant categories that align with your core offerings. For example, if you’re a plumber, you might include subcategories such as “emergency plumbing” or “water heater repair” to target customers with specific needs.
Equally important is defining the correct service areas. The main purpose of LSAs is to connect businesses to local clients, so it’s essential to choose service areas that match where your potential customers are located. Overestimating your service range may result in leads that are too far to be practical, while underestimating can lead to missed opportunities. Consider current client distribution, travel distance, and resource availability when mapping out your service areas.
Manage and Dispute Invalid Leads
Despite Google’s efforts to validate leads, occasionally, you may receive ones that are not valuable or legitimate. These can be accidental clicks, spam inquiries, or unrelated service requests. It’s important to regularly monitor your local advertising activity and dispute any invalid leads through the Google Guarantee program. In cases where a dispute is successful, Google will credit back the cost to your account balance.
Optimize Your LSA Campaigns and Grow Your Business
Real Time Marketing offers comprehensive Google Ads management services to help businesses of all sizes gain an edge in the digital marketplace. If you’re looking to streamline your LSA budget and maximize your returns, our team can assist in crafting and executing an effective strategy tailored to your business needs.
Book a call with our specialists today to get started.
