Google Local Services Ads – Bye Bye lead gen

Recently I have heard more about Google’s latest move to kill off another part of the advertising world. This time they are taking down lead gen websites with Google Local Services Ads. Now instead of having to search google for a locksmith and then end up on a website that then reaches out to local locksmiths for a bid you will be able to go from Google to a local locksmith.

It is in pilot mode currently which is Google’s new way of saying beta I guess. The local business has to do a background check on the entity, owner, and all field techs in order to participate. You then give Google a budget and pay when you get a lead.

The critical piece to make this effective is to be sure the cost of the lead is less than your average customer profit. Remember there is more to cost that just the money you pay Google. Don’t get Grouponed.

None of my clients are on the pilot yet. Mainly cause they are geographically and industry constrained but as they works things out I see this becoming a new thing to add to your Google budget. You will possibly be able to move some AdWords budget over for this if you do any residential business. It will be interesting to see how it plays into B2B as well.