Google Ads for Local Service Business: The Complete 2026 Guide

Why Google Ads Work for Local Services

Someone Googling "emergency plumber [city]" has a burst pipe RIGHT NOW. They're not comparison shopping for fun—they're hiring whoever answers first.

This is why Google Ads for local services can be incredibly profitable:

• High intent: Searchers are ready to buy, not just browsing
• Local targeting: Only pay for clicks from your service area
• Measurable: Track exactly which ads generate calls and revenue
• Scalable: Working? Increase budget. Getting 10 calls/day? Get 50.

The flip side: Google Ads can also burn money fast if done wrong. Average cost-per-click for "plumber near me" is $15-40. One bad campaign can waste hundreds with nothing to show.

Google Ads vs Google Local Service Ads

Confused about the difference? Here's the breakdown:

Google Local Service Ads (LSAs)

• Appear at very top of search results (above regular ads)
• Pay per lead, not per click ($15-75 per lead depending on industry)
• "Google Guaranteed" badge builds trust
• Only available for certain industries (home services, legal, etc.)
• Limited control over targeting and messaging

Google Search Ads

• Appear below LSAs but above organic results
• Pay per click (CPC)
• Full control over keywords, copy, landing pages
• Available for any business
• More complex to manage

Recommendation: If you're eligible for LSAs, run both. LSAs for easy leads; Search Ads for full control and additional volume.

Setting Up Google Ads: Step-by-Step

Step 1: Keyword Research

Start with the obvious searches your customers make:

• [your service] near me
• [your service] [city]
• emergency [your service]
• [specific problem] repair
• best [your service] [city]

Use Google Keyword Planner (free with Google Ads account) to find search volume and estimated costs.

Pro tip: Focus on "buyer intent" keywords. "HVAC repair" is buying intent. "How does an AC work" is educational—don't pay for those clicks.

Step 2: Location Targeting

Set your campaign to only show in your service area. Options:

• Radius around your office (e.g., 25 miles)
• Specific zip codes you serve
• Cities within your service territory

Critical: Set it to "Presence: People IN or regularly in your targeted locations" not "Presence or interest." Otherwise Google shows your ads to people researching your area from across the country.

Step 3: Write Your Ads

Google Ads have limited space. Make every word count:

Step 4: Landing Pages

Don't send ad clicks to your homepage. Create dedicated landing pages with:

• Headline matching the search intent
• Phone number prominent (click-to-call on mobile)
• Clear call-to-action
• Trust signals (reviews, licenses, badges)
• Fast load time (under 3 seconds)

Step 5: Conversion Tracking

Set up tracking for:

• Phone calls from ads
• Form submissions
• Chat conversations (if you have chat)

Without tracking, you can't know which keywords and ads make money. You're flying blind.

Bidding Strategies for Local Services

Starting Out: Manual CPC

When you're new, use manual bidding. Set a maximum you'll pay per click. Start conservative ($10-15 for most services), then adjust based on what converts.

With Data: Maximize Conversions

After 50+ conversions, switch to Google's automated bidding. It uses AI to optimize for leads. Set a target cost-per-acquisition (CPA) if you know what a lead is worth.

Bidding Example

Plumber in Denver:

• Average job: $400
• Close rate from ads: 30%
• Target: Spend max $120 to acquire a $400 job (30% of revenue)
• With 30% close rate, can afford $36 per lead
• With 10% click-to-lead rate, can afford $3.60 per click

Reality check: "Plumber Denver" costs $20-30/click. Either improve your conversion rates or accept lower margins from Google Ads.

Common Google Ads Mistakes

1. Broad Match Keywords

Broad match "plumber" will show your ad for "plumber salary," "plumber TV show," "Mario plumber costume." Use Phrase match or Exact match to control what triggers your ads.

2. No Negative Keywords

Add negative keywords like: free, jobs, salary, DIY, cheap, training, schools. These prevent wasted clicks from people who won't hire you.

3. Wrong Location Settings

As mentioned: use "Presence" not "Presence or interest." Check your search terms report for queries from outside your area.

4. Set and Forget

Google Ads require ongoing optimization. Review weekly: pause losing keywords, increase budget on winners, test new ad copy, refine targeting.

5. No Call Tracking

If you're not tracking which ads generate calls, you have no idea what's working. Use Google's call tracking or a third-party like CallRail.

Budget Guidelines

How much should you spend? Here's a framework:

Minimum Viable Budget

$500-1,000/month. Below this, you don't get enough data to optimize. You're essentially gambling.

Sweet Spot for Small Local Business

$1,500-3,000/month. Enough volume to optimize and scale what works.

Growing Aggressively

$5,000+/month. Only after you've proven ROI at lower budgets. Pouring money into unoptimized campaigns just wastes money faster.

Real Results: Local Google Ads Case Study

Here's what happened when a roofing company in Phoenix launched Google Ads:

Setup:

• Monthly budget: $3,000 ad spend + $1,000 management
• Keywords: roof repair, roofing contractor, roof replacement + [city] variants
• Landing page: Dedicated page for each service (repair vs replacement)

Results (after 90 days):

• Clicks: 180/month average
• Leads: 32/month (18% conversion rate)
• Cost per lead: $94
• Closed jobs: 8/month (25% close rate)
• Average job: $8,500
• Revenue: $68,000/month from $4,000 investment
• ROI: 17x

DIY vs Agency

DIY Google Ads

Pros: No management fees. Learn the platform. Full control.

Cons: 10-15 hours/month to do well. Expensive learning curve. Easy to waste money on mistakes.

Best for: Businesses with marketing-savvy owners and budgets under $2,000/month.

Agency Management

Pros: Professional optimization. Time savings. Better ROI (usually). Expertise across multiple campaigns.

Cons: Management fee ($800-2,500/month typically). Need to find a good agency.

Best for: Businesses serious about scaling and whose time is worth more than the management fee.

At Brandverse, we charge $1,000/month flat for managing Google, Meta, and TikTok ads. You pay ad spend directly to platforms. No percentage-of-spend gaming.