The Ultimate Guide to Google Ads for Local Businesses
- Jordan Brunelle
- Feb 17
- 11 min read
Quick Links
Key Takeaways
Google Ads provides instant visibility for local businesses, unlike SEO, which takes time to build traction.
Search Ads should be your main focus, with Local Services Ads (LSAs) as a secondary option if available in your industry.
Keyword research is essential—target high-intent local searches and filter out irrelevant traffic with negative keywords.
Strong ad copy and extensions improve performance—write compelling headlines, use clear CTAs, and take advantage of ad extensions like call, sitelink, and location.
Conversion tracking is critical—set up Google Tag Manager (GTM) and Google Forwarding Numbers to measure phone calls and form submissions accurately.
Start with Manual CPC bidding before switching to Smart Bidding once you have at least 15-20 conversions.
Regular campaign optimization is key—monitor search terms weekly, adjust bids, and refine landing pages for better conversion rates.
Scaling should be strategic—increase budget gradually, expand successful keywords, and optimize targeting based on performance data.
Avoid common mistakes like failing to use negative keywords, relying on smart bidding too soon, or neglecting mobile optimization.
A well-executed Google Ads strategy delivers real results, as seen in the AmishCo case study, where cost per lead dropped from $216 to $117, and conversions increased by 160%.
Introduction: Why Google Ads is a Must for Local Businesses
If you run a local business, you know how tough it can be to attract new customers. Traditional advertising—like direct mail, print ads, and radio spots—might still work, but they lack the precision and instant results that today’s digital world demands. That’s where Google Ads for local businesses comes in.
Google Ads allows businesses to instantly appear at the top of search results when potential customers are actively looking for services. Whether you're a plumber, lawyer, HVAC specialist, or tutor, Google Ads puts you in front of high-intent searchers who are ready to take action.
Why Local Businesses Should Use Google Ads
Immediate Visibility – Unlike SEO, which takes months to gain traction, Google Ads delivers leads right away.
Targeted Reach – Show ads only to people in your service area, reducing wasted ad spend.
Control Over Budget – Set a daily budget and adjust as needed.
Trackable ROI – See exactly how much you're spending per lead and conversion.
This guide will walk you through how to set up and optimize Google Ads for local businesses, from campaign creation to advanced bid strategies.
Step 1: Setting Up a High-Performing Google Ads Campaign
Define Your Goals
Before launching your Google Ads campaign, you need to define clear objectives:
Do you want more phone calls from potential customers?
Are you looking to increase form submissions?
Do you need to drive foot traffic to a physical location?
Your goals will determine your campaign structure and bidding strategy.
Choose the Right Google Ads Campaign Type
For local businesses, search ads should be your first priority, followed by local services ads (LSAs) if applicable. Avoid Display Ads, Performance Max, or YouTube campaigns until your search campaign is fully optimized.
1. Search Ads (Top Priority)
These are the text-based ads that appear at the top of search results when someone searches for your service. These ads are high-intent because they show up when people are actively looking for solutions.
✅ Best for: Service-based businesses like roofing, legal services, HVAC, and healthcare. ✅ Example search query: “best electrician near me”
2. Local Services Ads (If Applicable)
These ads show up above traditional search ads and are pay-per-lead, rather than pay-per-click. LSAs also display Google Guaranteed badges, which can increase trust and conversions.
✅ Best for: Home service businesses (e.g., plumbers, roofers, HVAC contractors).✅ Example search query: “emergency plumber near me”
📌 Important: LSAs are not available for every industry, so check Google’s Local Services Ads eligibility list before setting up.
Step 2: Keyword Research for Local Businesses
Choosing the right keywords is crucial for ensuring your Google Ads budget goes toward high-intent searches.
How to Find High-Intent Keywords
Use Google’s Keyword Planner to find relevant search terms:
Go to Google Ads → Tools & Settings → Keyword Planner.
Enter your industry and location (e.g., “roof repair in Dallas”).
Select high-intent keywords that show strong local search volume.
Examples of Effective Keywords for Local Businesses
“24/7 emergency plumbing near me”
“best HVAC contractor in [city]”
“local electrician free estimate”
Use Negative Keywords to Filter Out Irrelevant Clicks
Negative keywords help prevent wasted ad spend on irrelevant searches. Examples:
If you don’t offer DIY services, exclude terms like “how to fix my own AC.”
If you only serve commercial clients, exclude searches like “residential contractor.”
Step 3: Writing High-Converting Google Ads
Your ad copy needs to be compelling enough to drive clicks and conversions. Follow these best practices:
1. Craft Attention-Grabbing Headlines
Your headline should include your main keyword and a compelling offer. ✅ Example: “Affordable Roof Repair in Nashville – Call Now!”
2. Use Persuasive Descriptions
Explain why your business is the best choice and include a strong CTA (call-to-action). ✅ Example: “Fast, Reliable AC Repair | Free Estimates | Call Today!”
3. Add Ad Extensions for More Visibility
Extensions help increase ad performance by making your ad more informative and clickable:
Call Extensions – Let customers call directly from the ad.
Location Extensions – Show your business address and Google Maps link.
Sitelink Extensions – Direct users to key pages like “Contact Us” or “Services.”
Review Extensions – Display positive customer testimonials for credibility.
Step 4: Conversion Tracking – Measure What Matters
Without conversion tracking, you have no way of knowing if your Google Ads are actually generating leads. Setting this up ensures you can measure phone calls, form submissions, and other important actions.
How to Set Up Conversion Tracking in Google Ads
Go to Google Ads Dashboard → Tools & Settings → Conversions.
Choose the conversion action:
Phone calls (from call extensions or website calls).
Form submissions (lead forms on your site).
Store visits (for businesses with physical locations).
Use Google Tag Manager (GTM) or Google Analytics 4 for accurate tracking.
Enable Google Forwarding Numbers to track call conversions.
✅ Pro Tip: If most of your leads come from phone calls, enable call recording and duration tracking to evaluate lead quality.
Step 5: Choosing the Right Bidding Strategy
Your bidding strategy determines how much you’re willing to pay for clicks and conversions. For Google Ads for local businesses, using the right bidding approach can mean the difference between wasted spend and a profitable campaign.
Start with Manual CPC for Control
If you don’t have historical conversion data, start with Manual CPC (cost-per-click). This gives you full control over bids so you can gradually optimize for the best cost per lead.
Best for: New campaigns with no past conversion data.
How to use: Set a competitive max CPC bid and adjust weekly based on performance.
Goal: Keep cost per conversion within a profitable range while collecting enough data to switch to smart bidding.
Switch to Smart Bidding Once You Have Conversion Data
Once you’ve collected at least 15-20 conversions over a 30-45 day period, you can shift to Google’s automated bidding strategies. These use machine learning to maximize results based on historical data.
Recommended Smart Bidding Strategies for Local Businesses:
Maximize Conversions – Google will attempt to generate the most conversions within your budget.
Target CPA (Cost Per Acquisition) – If you have a specific cost per lead in mind, Google will adjust bids to stay within that target.
Enhanced CPC (ECPC) – Allows Google to adjust your manual CPC bids slightly to increase the chance of conversions.
📌 Pro Tip: For brand campaigns (bidding on your business name), manual CPC typically results in a lower cost per conversion than automated bidding.
Step 6: Optimizing Campaign Performance
Even with the right bidding strategy, your campaign needs continuous monitoring and adjustments to ensure you’re getting the best ROI. Here’s how to optimize your Google Ads for local businesses campaign.
1. Monitor & Adjust Search Terms Regularly
Check the Search Terms Report in Google Ads weekly.
Add irrelevant searches as negative keywords to prevent wasted spend.
Identify high-performing new terms and add them as exact or phrase match keywords.
2. Improve Your Quality Score
Google assigns a Quality Score (1-10) to your keywords based on three factors:
Expected CTR (Click-Through Rate) – The likelihood of your ad being clicked.
Ad Relevance – How well your ad copy matches the user’s search intent.
Landing Page Experience – How useful and relevant your landing page is.
✅ How to Improve Quality Score:
Match ad copy to keywords. If you're bidding on “roof repair in Austin,” ensure that phrase is in the ad.
Ensure landing pages are fast and mobile-friendly.
Improve ad relevance by testing different headlines and descriptions.
3. Optimize Ad Extensions to Increase Clicks
Google Ads extensions add extra information to your ad, making it more appealing and increasing click-through rates (CTR).
🚀 Best Extensions for Local Businesses:
Call Extensions – Let users call directly from the ad.
Location Extensions – Show your business address with Google Maps.
Sitelink Extensions – Direct users to key pages (e.g., “Schedule a Consultation,” “Get a Free Quote”).
Review Extensions – Showcase positive customer testimonials.
📌 Pro Tip: Ads with multiple extensions have a higher CTR and lower CPC, improving overall performance.
Step 7: Landing Page Optimization for Higher Conversions
A well-optimized landing page can significantly increase your conversion rate. Even if you’re getting great traffic, a poor landing page can cause potential leads to bounce without taking action.
1. Make the Landing Page Match Your Ad Copy
The headline should match the keyword and ad.
Reinforce the call-to-action (CTA) used in the ad (e.g., “Call Now for a Free Quote!”).
Keep the page focused on one goal (e.g., form submission, call, or booking).
2. Improve Page Load Speed & Mobile Experience
Google prioritizes fast-loading sites. Use Google PageSpeed Insights to check your speed.
Ensure the site is mobile-friendly, as most local searches happen on mobile.
Reduce unnecessary content or large images that slow down the page.
3. Use Trust Signals to Increase Conversions
Customer reviews & testimonials
“Google Guaranteed” badge (if applicable)
Badges for licensing, accreditations, or partnerships
Clear pricing (if possible) and no hidden fees
Step 8: Tracking Conversions & Analyzing Performance
If you’re not tracking conversions, you won’t know which ads are actually bringing in leads. Proper tracking allows you to refine your campaigns based on real data.
How to Set Up Conversion Tracking in Google Ads
Go to Google Ads Dashboard → Tools & Settings → Conversions
Click New Conversion Action and choose your goal:
Phone calls (track calls from ads or landing pages)
Form submissions (track contact form completions)
Store visits (for businesses with physical locations)
Use Google Tag Manager (GTM) or Google Analytics 4 to track website conversions.
Enable Google Forwarding Numbers for tracking call conversions.
📌 Pro Tip: If your business relies on phone calls, enable call recording and call duration tracking to measure lead quality.
Step 9: Scaling Your Google Ads Campaign
Once your Google Ads campaign is running efficiently and generating leads at a profitable cost-per-acquisition (CPA), it’s time to scale up. Scaling isn’t just about increasing your budget—it’s about making strategic adjustments to expand your reach while maintaining a strong return on investment (ROI).
1. Increase Your Budget Gradually
Don’t double your budget overnight—increase it by 10-20% per week to ensure consistent performance.
Watch for increases in cost per lead (CPL)—if your CPL spikes, you may need to adjust keyword bids or optimize ad copy.
Ensure your impression share is not maxed out before increasing the budget.
2. Expand Your Keyword Targeting
Analyze Search Term Reports to find high-performing keywords that you can add as exact match or phrase match.
Consider adding geo-modified keywords (e.g., “best electrician in Dallas” instead of just “best electrician”).
Test long-tail keywords with lower competition but high conversion potential.
3. Optimize for High-Performing Locations
Use location bid adjustments to increase bids in cities or zip codes where leads are converting best.
Lower bids or exclude underperforming locations that drive clicks but don’t generate conversions.
4. Implement Retargeting Strategies
Even the best search campaigns won’t convert every visitor on the first click. Retargeting helps bring back potential leads who have previously visited your site.
Set up remarketing lists for search ads (RLSA) to adjust bids for users who have already interacted with your business.
Run display remarketing ads to remind past visitors about your services.
Test offering discounts or limited-time offers to encourage conversions from returning visitors.
5. Test Ad Variations & Landing Pages
Scaling means optimizing every aspect of your campaign. A/B testing different versions of your ads and landing pages can significantly impact performance.
Test new ad headlines, descriptions, and CTAs to improve click-through rates (CTR).
Try different offers (e.g., “$50 Off First Service” vs. “Free Consultation”).
Run A/B tests on landing pages to find layouts and messaging that lead to higher conversion rates.
Step 10: Avoiding Common Pitfalls
Even experienced advertisers make mistakes that can waste budget and lower ROI. Here are some common pitfalls and how to avoid them.
1. Ignoring Search Term Reports
If you’re not reviewing your search term report weekly, you’re likely wasting money on irrelevant clicks.
Fix: Regularly add negative keywords to filter out searches that don’t align with your services.
2. Using the Wrong Bidding Strategy Too Early
Many businesses switch to Maximize Conversions or Target CPA too soon, leading to erratic costs.
Fix: Stay with Manual CPC until you have at least 15-20 conversions before testing smart bidding.
3. Not Optimizing for Mobile Users
More than 60% of local searches happen on mobile devices. If your landing page is slow or difficult to navigate, you’re losing leads.
Fix: Use Google’s PageSpeed Insights to check load times and optimize for mobile responsiveness.
4. Neglecting Ad Extensions
Without call extensions, sitelinks, and location extensions, your ad is less visible and engaging.
Fix: Add all relevant extensions to increase CTR and improve ad relevance.
5. Not Adjusting for Seasonality
Many industries have seasonal fluctuations that impact search volume and cost per lead.
Fix: Increase budgets during peak seasons and adjust messaging for timely offers.
Case Study: How AmishCo Scaled to 160% Higher Conversions
The Challenge:
AmishCo, a seller of Amish-built barns, sheds, and garages, was struggling to generate high-quality leads. With no prior brand awareness or word-of-mouth referrals, they needed Google Ads to be their primary driver of business.
The Strategy:
Built Product-Specific Landing Pages – Instead of sending traffic to a generic homepage, we created optimized landing pages for each product type.
Targeted “Amish-built” Keywords – Since buyers specifically searched for Amish-built sheds and barns, we structured campaigns around these high-intent terms.
Bid Strategy Optimization – We started with Manual CPC, then switched to Maximize Conversions once we had enough data.
The Results:
Conversion rate increased by 160% due to A/B testing different calls-to-action.
Cost per lead dropped from $216 to $117 within four months.
Google Ads drove 90% of new business inquiries, proving that PPC was essential for growth.
📌 Key Takeaway: A well-structured Google Ads campaign can significantly reduce cost per lead and drive consistent, high-quality inquiries.
Final Takeaways & Next Steps
Running Google Ads for local businesses successfully requires ongoing optimization, testing, and adjustments. Here’s a summary of the key steps:
✅ Start with Manual CPC, then shift to Smart Bidding once you have conversion data.
✅ Monitor search terms weekly and add negative keywords to eliminate wasted spend.
✅ Optimize landing pages for speed, mobile-friendliness, and clear CTAs.
✅ Use ad extensions to improve click-through rates and engagement.
✅ Scale gradually by increasing budget, adding high-performing keywords, and testing new ad variations.
✅ Track conversions accurately to measure success and adjust your strategy accordingly.
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