23. What is the Difference Between Google Guaranteed Ads and Paid Search?

In this episode of Digital Marketing for Contractors, Janet and PPC specialist Jack Ankoviak discuss Google Guaranteed Ads, also known as Local Service Ads (LSAs). They explain how these ads work, how to set them up, and the benefits of using a pay-per-lead model for home improvement contractors. They also cover the differences between Google Guaranteed Ads and traditional paid search ads, the pros and cons of the platform, and practical tips for maximizing ad performance. Whether you're new to LSAs or looking to optimize your current campaigns, this episode provides valuable insights for contractors looking to grow their business.

Want to find out how we can create a custom digital marketing game plan for your contractor business? Schedule a call with us at fatcatstrategies.com.

Transcript

Janet: Welcome to Digital Marketing for Contractors, a podcast designed to help home improvement contractors crush their lead goals and elevate their businesses to the next level. Join us in each episode as we share powerful insights and practical tips on the best digital marketing strategies to help grow your business. Let's dive in! Hello, and welcome back to Digital Marketing for Contractors, a podcast hosted by Fat Cat Strategies. We’re a full-service digital marketing company based in Raleigh, North Carolina, specializing in driving leads, sales, and growth for home improvement contractors like you. I'm Janet, the founder of Fat Cat Strategies, and today, I’m super excited to have Jack with me. Jack, say hello!

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?

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!