Episode 023: What is the Difference Between Google Guaranteed Ads and Paid Search?
Understanding Google Guaranteed Ads: A Complete Guide for Contractors
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!
Audio only version of the podcast here.
Podcast Transcript
Jack: Hey, everyone! I’m Jack Ankoviak, a PPC specialist here at Fat Cat Strategies.
Janet: What are we talking about today, Jack?
Jack: Today, we’re diving into Google Guaranteed Ads, also known as Local Service Ads, or LSA. Internally, we sometimes call them LSAs, but I’ve caught myself referring to them with clients, and they often have no idea what I mean. So, let’s define it first. Google Guaranteed, also called Local Service Ads (LSAs), is a type of search advertisement. Jack, what exactly are Google Guaranteed Ads?
Read MoreLess
Jack: Google LSA or Google Guaranteed ads are a fairly new form of search advertising, launched around 2022. They appear when people search for services like “plumbers near me,” “roofers near me,” or “siding services near me.” Google has created a structured program where service providers can submit their licenses, get verified, and have their ads shown when people search for these services. One major benefit of these ads is that you only pay when you receive a call or a message, unlike traditional pay-per-click ads.
Janet: So, the contractor or business running the ad is the one paying?
Jack: Exactly. The contractor, such as a plumber or roofer, pays per lead—hence, it’s a pay-per-lead platform.
Janet: Okay. So, if someone searches “roofers near me,” the contractor pays when they receive a call or a message?
Jack: Correct. You can test this out by doing a quick search for plumbers near you—just don’t do it while driving! You’ll likely see a green check mark next to “Google Guaranteed” at the top of the search results.
Janet: Why are they called “Guaranteed”?
Jack: The “Google Guarantee” is based on the verification process I mentioned earlier, where businesses submit their licensing information. Google guarantees the company is reputable, which helps build trust with potential customers.
Janet: So, the guarantee is for the customer?
Jack: Exactly. It assures the homeowner or buyer that the contractor is qualified, reputable, and insured. If something goes wrong, the homeowner can file a complaint with Google, and they may be eligible for a refund of up to $2,000.
Janet: That’s interesting. Have you ever heard of a homeowner actually doing that?
Jack: Honestly, I haven’t. Most homeowners don’t even realize it’s an option. The green checkmark tends to function more like a trust signal, giving a sense of reliability.
Janet: So, once a contractor is verified and ready to run Google Guaranteed Ads, how do they set their budget?
Jack: The budget is set within the ad management platform. Contractors set a weekly budget, which could range from $100 to $10,000. Google will stop showing ads once the budget is exhausted based on the cost per lead.
Janet: And the cost per lead can vary?
Jack: Yes, it fluctuates based on factors like location, time of day, and the device being used to search. It works like a dynamic auction system.
Janet: So, how are Google Guaranteed Ads different from regular paid search ads?
Jack: The main differences are control and destination. With regular paid search ads, you have more control over your ad copy, and the ad directs users to your website. Google Guaranteed Ads, on the other hand, only show your company name, reviews, and phone number—no website link. You lose some control over messaging, but you gain the trust factor with the Google Guarantee.
Janet: What about industries like bath contractors? Are there challenges when categorizing their services in LSAs?
Jack: Yes, it can be tricky. For one-day bath contractors, we often choose two parent categories: general contracting, with a subcategory of bath installation, and plumbing, with a subcategory of shower installation.
Janet: So, what are some of the cons of running Google Guaranteed Ads?
Jack: One big drawback is that the ads don’t drive traffic to your website, so customers won’t learn much about your brand or values. Another con is the limited control over messaging, and the potential for customers to file complaints for refunds through Google, even though it’s rare.
Janet: Makes sense. Any final thoughts on Google Guaranteed Ads vs. paid search ads?
Jack: Both have their strengths, but they serve different purposes. Google Guaranteed Ads build immediate trust and focus on generating direct leads, while paid search ads provide more control and drive traffic to your website.
Janet: Awesome. Thanks, Jack, for all your insights today!
Jack: My pleasure! Thanks for having me, Janet.
Janet: Thank you for listening to Digital Marketing for Contractors. If you’d like more information, check out our blog at fatcatstrategies.com. See you next time!