Episode 023: What is the Difference Between Google Guaranteed Ads and Paid Search?

Google Guaranteed Ads, also known as Local Service Ads (LSAs), are a game-changing form of digital advertising for service providers like home improvement contractors, plumbers, and roofers. These ads help businesses reach local customers while building trust with the “Google Guarantee.” In this blog, we’ll explore what Google Guaranteed Ads are, how they work, and how they compare to traditional paid search ads.

What Are Google Guaranteed Ads?

Google Guaranteed Ads are a type of local search ad designed to connect customers with service providers in their area. When users search for services like “roofers near me” or “plumbers near me,” Google Guaranteed Ads appear at the top of the search results, often marked with a green checkmark that signifies the “Google Guarantee.”

How Does the Google Guarantee Work?

The Google Guarantee is a promise from Google that the business in question has been verified as reputable, licensed, and insured. Contractors must submit their licensing and other business credentials to Google, who then reviews and verifies them. This guarantee reassures customers that the business they’re contacting is trustworthy.

If a customer is dissatisfied with the service, they can request a refund of up to $2,000 through Google. However, this feature is rarely used, as most homeowners are unaware of its existence.

What Makes Google Guaranteed Ads Different?

Unlike traditional pay-per-click (PPC) search ads, which charge businesses for each click, Google Guaranteed Ads operate on a pay-per-lead basis. This means that contractors only pay when a potential customer calls or sends a message, making these ads an attractive option for businesses focused on generating qualified leads.

Setting Up Google Guaranteed Ads

To get started with Google Guaranteed Ads, contractors need to go through a verification process and set their weekly budget. Here’s how it works:

Verification Process

Before you can start running Google Guaranteed Ads, you need to submit your business information and relevant licenses. Google will review your application to ensure you are licensed and qualified to provide the services you’re advertising. This process can take some time but is essential to gaining the Google Guarantee.

Budget and Lead Costs

Once verified, you can set a weekly budget for your ads. This budget determines how much you’re willing to spend on leads each week. For example, if a lead costs $50 and your budget is $500, your ads will stop showing once you’ve received 10 leads.

Automated Lead Screening

Google Guaranteed Ads have an automated lead screening system, meaning you can’t manually dispute charges for bad leads anymore. Instead, Google automatically reviews calls and leads to ensure they match the services you offer.

Benefits of Google Guaranteed Ads

Google Guaranteed Ads provide several key benefits to home improvement contractors and service providers:

1. Build Instant Trust

The green “Google Guaranteed” checkmark next to your business name builds immediate trust with potential customers. This trust factor often leads to higher click-through rates and better-quality leads.

2. Pay Only for Leads

Unlike traditional PPC campaigns, you only pay when you receive a phone call or message from a customer. This pay-per-lead model ensures you’re only paying for direct interactions, not just clicks.

3. Simplified Ad Setup

Setting up Google Guaranteed Ads is straightforward. You don’t need to worry about crafting compelling ad copy or directing users to your website. The ad shows your business name, star rating, and phone number, making it easy for customers to contact you.

Drawbacks of Google Guaranteed Ads

While Google Guaranteed Ads offer several benefits, they do come with a few limitations.

1. Limited Control Over Messaging

With Google Guaranteed Ads, you have little control over the content of the ad itself. Unlike traditional search ads where you can customize headlines and descriptions, Google Guaranteed Ads only show your business name, star rating, and a contact option. This limits your ability to differentiate your brand.

2. No Traffic to Your Website

Google Guaranteed Ads do not drive traffic to your website. When someone clicks on your ad, they are directed to a simple page with your business information and an option to call or message you. This limits your ability to showcase your brand, past projects, or other important content.

3. Customer Refund Pathway

While rare, Google does offer customers a refund pathway if they are unsatisfied with the service they received. This could be a hassle for businesses, even if the feature is seldom used.

Comparing Google Guaranteed Ads to Traditional Paid Search Ads

Both Google Guaranteed Ads and traditional paid search ads have their place in a contractor’s digital marketing strategy. Here’s a comparison to help you decide which is right for you.

Google Guaranteed Ads

• Pay-per-lead model: You only pay when a customer calls or messages you.
• Trust factor: The Google Guarantee adds credibility and builds trust with customers.
• Simplified format: Ads are straightforward with limited customization options.
• No website traffic: Ads don’t direct users to your website.

Paid Search Ads

• Pay-per-click model: You pay for every click, whether or not it results in a lead.
• More control over messaging: You can fully customize your ad copy to highlight promotions, services, or awards.
• Website traffic: Paid search ads direct users to your website, giving you more opportunities to showcase your brand.

Should You Use Google Guaranteed Ads?

Google Guaranteed Ads can be a valuable addition to your digital marketing strategy, especially if you are looking for qualified leads in your local area. They are particularly useful for contractors who want to build trust quickly and streamline the lead generation process. However, if your goal is to drive traffic to your website and create a more customized ad experience, traditional paid search ads may be a better fit.

For contractors looking for a mix of both strategies, running Google Guaranteed Ads alongside paid search ads can provide the best of both worlds—building trust with the Google Guarantee while also driving traffic and showcasing your brand.

Conclusion

Google Guaranteed Ads offer a unique opportunity for contractors to generate leads while building immediate trust with potential customers. Although they come with some limitations, such as less control over messaging and no website traffic, their pay-per-lead model and credibility make them an appealing option for service providers.

If you’re ready to explore how Google Guaranteed Ads can help your business grow, reach out to a digital marketing expert to get started!