We all know what to look at when we are managing a Google ads account in terms of analyzing performance data, but the LSA black box comes with another layer of deciphering. However at its core it’s actually quite simple to evaluate your Local Services Ads performance data. So in this article we will walk you through how to look at the data in Google Local Services Ads to see if this is a viable option for your local presence.
Like everything under the Google marketing umbrella, there are different strategies and layers of data to analyze depending on how deep down the rabbit hole you want to go.
The Reports Tab In The LSA Interface
Let’s start with the simplest way to check your LSA performance, the reports tab inside the Local Services Ads dashboard. You’re going to go to the hamburger menu on the left hand sign and go to the fourth thing down (reports) this view will show you your basic LSA performance for any range going back two years.
In this view you can see your basic data like , how many leads you received during a period, Your total cost during that period, your total impressions and your top of page rate and abs top of page rate.
So this information can tell you your overall cost per lead if you divide costs by total leads. In this case, $2,871.51 divided by 6 leads equals around $478.58 per call or lead. Oddly enough, the cost per conversion of LSA generally comes out to a similar cost per lead as Google Ads (this is NOT a coincidence!). Also, just for context, that lead cost is for personal injury law, which is why the CPL is so expensive.
Then, you will want to review your leads in the leads section and see how many of the leads that came in during this period resulted in actual clients. For some verticals this is easier than others. In home repair and other “Google guaranteed” LSA categories, it’s generally a little easier to calculate ROI, as there is a quicker turnaround time from lead to booked job, whereas in service based verticals this can take a little longer to suss out. But what you want to do in order to determine if LSA is a viable ad source for you is to calculate your ROI. You can put in a revenue figure or estimate in the leads section to determine this.
After that, you can use your top impression rate percentage and absolute top impression rate percentage to see how you are stacking up competition wise, kind of. Now, those metrics are slightly different from normal PPC data, because of how LSA shows differently than PPC ads across Google search results. Lets dive in!
How LSA Shows Up And Why That Matters For top impression rate and Absolute Top impression rate.
Local Services Ads have one spectacular benefit and that is that when they do show up, they show up at the very tippy top of search results. However, how they do show up can vary. Since I am a legal advertiser I am going to use examples for lawyer searches, but there are things here that apply to all LSA’s. On desktop currently, when LSA shows up it is generally a two pack that then expands to an 8 pack when clicked, before entering the 20 pack (note there are many more than 20 advertisers in each geo, and Google cycles new ones in per search and account settings)
Two Pack View (Desktop)
Expanded Into 8 Pack Drop Down (desktop)
Mobile Placements.
Now that is just the case for desktop! On mobile the views and spots change. On mobile, the view is a 3 pack and then expands to an eight pack and then to a 20 pack, but if you click into the local business finder map there is also a 3 pack that expands to an eight pack but you CANNOT go into the full 20 pack from the local business finder map placements.
LSA has also begun to appear as the top map ad on desktop and mobile and inside the local business finder. On both desktop and mobile, ad formats switch out between PPC and LSA depending on the time of day and search. On mobile LSA can serve on the Google maps app on iOS, and also we have seen LSA popping up in competitors’ Google Business Profiles on desktop and Mobile from time to time, this comes and goes.
With all that being said and knowing that you cannot view these placements or segment anything out, the impression share stats can give you a broad idea of how you’re stacking up. If you have a high number of impressions and a high top of page rate and absolute top of page rate, you’re doing good in how you show up. Remember that LSA works similar to PPC ads in that the top spot gets the most clicks and then decreases the further you are down the line (mostly, don’t forget I said this is a black box). Then your absolute top percentage is the real determination in how well you are doing show up-wise.
Managing LSAs Out Of Google Ads Accounts
Okay so now that I have thoroughly confused you all, lets keep going further down the rabbit hole! You may not know this, but Google Local Services Ads are run out of Google ads accounts with the same old school keyword technology as Google ads, just behind a curtain in a black box. What you may not know is that because of this, if you have a Google ads MCC, you can in some cases import those accounts into your MCC and see ALL the same data, or most of it, anyways. And yes, LSA even has a cost per click figure, because that’s how Google ads works, even though you’re not charged for clicks, you’re only charged for leads. So this is a way to supercharge your data analysis as you can change metrics in the chart and segment data in this view.
Managing LSA using Organic
There is another thing about LSA. While LSA does provide a place for people to easily contact you, another benefit is that it places you at the top and can be an entry point for relevant website traffic.
You can now update your URL on your LSA account easily in the platform and include a UTM term at the end of your URL. When you do this, you can then check your Google Analytics and see what happens to the sub segment of the LSA audience that bypasses LSA and goes directly to your site to take actions.
While LSA can be a very powerful tool for local advertisers and has many pros, there are still some flaws to this black box that it is. One is that the ad platform can sometimes lead to oversaturation in certain highly competitive verticals, which causes Google to rotate out advertisers randomly. The other is that it’s a black box that relies on full broad match and smart bidding, and Google is constantly tinkering with it and testing new keyword sets and Geo expansions. This can sometimes result in off-topic or lower quality leads that can be costly. Although Google has been doing better recently with making sure you dont show up in sub categories that you have turned off.
Another dowm side of LSA is that it does NOT show up all the time. What we know about LSA is that it serves more on local “near me” or geo-based searches. It serves slightly more on mobile than on desktop and it serves more frequently during high conversion times or normal business hours. So, because of this, if you are ONLY focusing on LSA, you’re missing out on a lot of traffic that is looking for what your business offers. That is why LSA is only one tool in the Google arsenal and should be managed in unison with Google ads as well as other branding ad formats in Google ads.
Conclusion
Google Local Services Ads can be a very powerful tool to add to your advertising arsenal and when it’s used in unison with Google PPC ads and other branding ads it can really increase your visibility on Google and get you a lot of leads for your local business. Just make sure that you are reviewing your leads that turned into customers and what your cost per lead and overall costs are so that you can make sure that this is a viable channel for your business.
