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Are Google’s Local Services Ads Worth The Hassle?

More is better.

There’s a general rule of thumb that the more real estate you can claim on Google search engine results pages (SERPs), the better.

Generally, more real estate means more eyeballs – which could mean more clicks and sales. Local Service Ads are an underutilized way to claim more real estate on SERPs, especially when people search for your service. However, not everyone who’s eligible to use these ads is, in fact, using them.

Why not? Probably because these ads require the advertiser to do some upfront legwork. Which begs the question… are Local Service Ads worth the hassle of setting up?

Key Takeaways:

  • Local Service Ads are worth the effort: Despite the upfront legwork required to set up Local Service Ads, they offer a valuable way to claim more real estate on Google search engine results pages (SERPs), which can lead to more eyeballs, clicks, and sales.
  • Two types of Local Service Ads exist: Google Screened Ads are for professional service firms, while Google Guaranteed Ads are for home service providers. Both require background and license verification checks, but Google Guaranteed Ads also offer a money-back guarantee to customers.
  • Combine Local Service Ads with paid search text ads: Using both ad formats can help you claim even more real estate on SERPs, increasing your online visibility and potential for conversions.

What Are Local Service Ads?

Before we investigate the benefits and setup process of Local Service Ads, let’s first understand what they are and how they appear on search engine results pages (SERPs).

How They Appear on SERPs

On Google search results pages, Local Service Ads appear at the top, above both text ads and organic search results. They’re hard to miss, featuring a “Google Screened” or “Google Guaranteed” badge, headshots, ratings, hours, and number of years in business. This prime real estate on SERPs is what makes them so valuable.

Benefits of Using Local Service Ads

Any business that provides local services can benefit from using Local Service Ads. By showcasing your business’s reputation, expertise, and customer reviews, you can attract more customers and set yourself apart from competitors.

They offer a unique opportunity to build trust with potential customers by highlighting your business’s credentials, such as licenses, certifications, and insurance. Additionally, Local Service Ads provide a money-back guarantee to customers, which can give them peace of mind when choosing a service provider. By using Local Service Ads, you can increase your online visibility, drive more leads, and ultimately grow your business.

Getting Started with Local Service Ads

Even if you’re excited about the potential of Local Service Ads, you can’t just dive in without doing your homework. To get started, you’ll need to navigate the eligibility and approval process, which can be a bit of a hurdle.

Eligibility and Approval Process

Service providers must meet specific requirements to be eligible for Local Service Ads. These requirements vary depending on your business category and location. For example, family lawyers need to have professional liability insurance and a state bar license, while water damage service companies need to provide proof of IICRC certification. You’ll need to upload documentation to prove you’ve met these requirements, which Google will then verify.

Google Screened Ads vs. Google Guaranteed Ads

Screened and guaranteed ads are two types of Local Service Ads, each with its own set of requirements and benefits. Google Screened Ads are for professional service firms, such as law firms and financial planners, and require background checks and license verification. Google Guaranteed Ads, on the other hand, are for home service providers, like HVAC and locksmiths, and offer a money-back guarantee to customers.

Plus, Google Guaranteed Ads provide an added layer of protection for customers, who can request reimbursement if they’re unsatisfied with the work. This can be a major selling point for customers who are hesitant to try a new service provider. By choosing the right type of ad for your business, you can increase trust and credibility with potential customers.

Google Screened Ads

Despite the extra effort required to set up Local Service Ads, Google Screened Ads offer a unique opportunity for professional service firms to establish trust with potential clients and stand out in search engine results pages (SERPs).

Requirements for Professional Service Firms

An crucial step in getting started with Google Screened Ads is meeting the necessary requirements, which vary depending on the business category and location. For instance, family lawyers must have professional liability insurance and a state bar license, while childcare service providers need to undergo background checks and license verification.

Background Checks and License Verification

Professionally, Google Screened Ads require firms to undergo thorough background checks and license verification to ensure the highest level of trust and credibility with potential clients. This process helps to build confidence in the services offered, which can lead to increased conversions and revenue.

With Google Screened Ads, you can rest assured that your business has been thoroughly vetted, giving potential clients peace of mind when choosing a service provider. By meeting these requirements, you can demonstrate your commitment to excellence and differentiate your business from competitors.

Google Guaranteed Ads

Once again, the category you qualify for will depend on your business type. If you’re a home service provider, such as an HVAC technician, plumber, or house cleaner, you’ll need to apply for Google Guaranteed Ads.

Requirements for Home Service Providers

Any home service provider looking to use Google Guaranteed Ads must undergo a background and license verification check. This ensures that customers can trust the professionals they’re hiring through Local Service Ads.

Money-Back Guarantee for Customers

For customers who find a home service provider through a Local Services Ad, Google offers a money-back guarantee. If they’re not satisfied with the work, Google may reimburse them up to a certain lifetime limit (currently $2,000 in the U.S.).

Guaranteeing customer satisfaction is a big deal. It shows that Google is committed to connecting customers with trustworthy professionals. And for you, as a business owner, it means that you’ll need to meet certain standards to qualify for Google Guaranteed Ads. But the payoff can be huge – increased visibility, credibility, and a competitive edge in your market.

The Screening and Verification Process

Keep in mind that the screening and verification process for Local Service Ads is crucial to ensure that only trustworthy and qualified professionals can participate. This process varies depending on the business category and location.

Varying Requirements by Business Category and Location

Varying requirements apply to different business categories and locations. For instance, family lawyers don’t need to undergo a background check since they already have to pass one to obtain a license. On the other hand, water damage service companies require a background check, proof of insurance, licenses, and IICRC certification.

Examples of Requirements for Different Industries

Verification requirements differ across industries. For example, a family law firm must provide proof of professional liability insurance and state bar licenses for each lawyer in the firm. In contrast, a water damage service company needs to provide a background check, proof of insurance, licenses, and IICRC certification.

Location also plays a significant role in determining the specific requirements for each industry. Google ensures that businesses meet the necessary standards to provide a safe and trustworthy experience for customers. By understanding these requirements, you can prepare your business for the screening and verification process, increasing your chances of getting approved for Local Service Ads.

Review Requirements

To get started with Local Service Ads, you’ll need to meet certain review requirements. This is where the “hassle factor” kicks in, but trust us, it’s worth it.

Maintaining a 3.0 Rating or Higher

For your Local Service Ads to remain active, you’ll need to maintain a Google rating of 3.0 or higher. This ensures that only high-quality businesses are using this ad format, which is important for building trust with potential customers.

Number of Reviews Required

Rating-wise, you’ll need at least one review to get started with Local Service Ads. However, the number of reviews required can vary depending on your business category and location.

To give you a better idea, let’s take a look at the examples we mentioned earlier. For family law services, only one review is needed, while water damage services may require more. The key is to focus on providing excellent service to your customers, which will naturally lead to more reviews and a higher rating.

Combining Local Service Ads with Paid Search Text Ads

For businesses that want to dominate the search engine results page (SERP), combining Local Service Ads with paid search text ads is a winning strategy.

The One-Two Punch of Local Service Ads and Paid Search Text Ads

An effective way to claim more real estate on SERPs is to use both Local Service Ads and paid search text ads. By doing so, you can increase your visibility, drive more traffic to your website, and ultimately boost conversions.

Example of a Company Using Both Ad Formats

Local service providers, such as plumbers or electricians, can benefit greatly from using both ad formats. For instance, a company like “ABC Plumbing” can use Local Service Ads to showcase their Google Guaranteed badge and ratings, while also running paid search text ads to target specific keywords and demographics.

OneTwo punch approach can be particularly effective for businesses that offer emergency services, such as locksmiths or water damage restoration companies. By using both ad formats, they can reach customers in urgent need of their services and increase their chances of conversion.

According to Google, businesses that use both Local Service Ads and paid search text ads see an average increase of 25% in conversions compared to those that use only one ad format. By combining the two, you can create a powerful online presence that drives real results for your business.

Final Thoughts

With these considerations, you now have a solid understanding of Local Service Ads and their potential benefits for your business. While setting them up may require some upfront effort, the payoff can be significant, especially when combined with traditional paid search text ads. So, take the leap and explore Local Service Ads – you may find that they bring in a substantial return on your investment.


Cliff Tillery, MBA is the Chief Operating Officer and SEO Director at Make It Loud which is a digital marketing firm located outside of Atlanta Georgia. More than 14 years ago, he started search engine optimization at this award-winning agency and has taught digital marketing skills to business owners at the Gwinnett Chamber of Commerce, the Gwinnett Entrepreneur Center, and other groups.

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CliffTillery COO
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