Cost of Local Service Ads (LSA)

[nixid]

Does the amount charged the advertiser vary like other Google products? Does someone with more reviews, more stars pay less than someone else? I have talked to people in the same area regarding the same professions and there seem to be a difference in cost per connection.

 

[zach.todd]

I'm also interested in how this is going to work. Google states on their support page that proximity, reviews, and responsiveness have an impact on whether your LSA is shown. They're also rolling out an auction model for LSA, instead of a flat rate, so I would have to assume that bidding higher could override those other factors.

This starts to sound a lot like traditional Google Ads and quality score, in that a higher quality score means lower bidding costs, but you can still shove your way to the top with more money.

 

[TomW]

This will depend on the business type and market. For some, a business will be charged the same amount as their competitors. In others, as Zach mentioned, some businesses may have a higher bid than others so the amount they're charged per lead will vary. I think it's safe to assume that a higher max bid could help make up for low scores in the other factors involved in determining placement.

 

[nixid]

I have seen a minimum bid of $150 per lead in LSA , which seems high.

 

[Contractor]

I have seen a minimum bid of $150 per lead in LSA , which seems high.

In which field?

 

[nixid]

Attorney - Bankruptcy

 

[JoyHawkins]

It's even higher than that for personal injury lawyers.

 

[nixid]

Leads charged
6
Phone: 6Message: 0
Average cost per lead: $225.00

 

[nixid]

Found this LSA cost calculator from Google, and it looks to be accurate for the cost per lead.Local Services Ads - Lead Generation for Local Customers

 

[Larry Linson]

It's even higher than that for personal injury lawyers.

My social security disability lawyer client was charged $131 for a lead and was not happy. That is well above typical adword charges even for popular keywords like "disability lawyer". Also well above rate that lead generating services charge lawyers for leads. He can make no more than $6K on a case but a good personal injury case can be worth tens of thousands. He gets lots of unproductive inquiries in his business. There is nothing that would indicate the possibility that LSA leads would be higher quality. Local Service Ads looks like another Google shakedown to me.

 

[Larry Linson]

I would like to add to my LSA experience on behalf of a social security disability attorney client. The setup for the ad was difficult - rejection after rejection of her picture, many times the same picture rejected for different reasons, other times no reason given. I called LSA several times for help, told someone would call back, and they never did. E-mails to LSA were ignored. Finally, by hook or crook on my part, a picture passed.

My attorney is in a major metro area, but he was shocked when the first worthless lead from the LSA (in his business its 10+ leads to get one good case) cost him $131. Partly my bad - I should have checked the cost estimator which did indicate that outrageous charge level in his metro area.

Next I decided to look into some surrounding areas. I found, a bit to my surprise, that I could add regional areas that did show much lower estimated charges. Wondering just how far google would let me stray from my client's metro location (it is "local" service ad, after all), I added a city 2000 miles away and was shocked to see google dutifully added that city to my areas of coverage. I of course deleted that distance area.

But when leads came in from the nearby rural areas I did add to the coverage area - areas with much lower estimated charges - I found they were charged at the very same rate that I had incurred with my initial listing in the major metro area!

This product is so not ready for our clients, and I am bit surprised I do not see here or in other locations more robust investigations and indeed warnings about this dicey product. This looks to me like an attempt to undercut and replace the non-revenue producing local pack. Meaningful antitrust action against Google cannot come soon enough for me!

 

[Contractor]

I am bit surprised I do not see here or in other locations more robust investigations and indeed warnings about this dicey product.

I figured there is not as much talk about LSA here and on other SEO websites/groups because it is something that is more suited for the end user to use directly, not so much for an agency to do.

 

[mblumenthal]

@Larry

I would like to add to my LSA experience on behalf of a social security disability attorney client. The setup for the ad was difficult - rejection after rejection of her picture, many times the same picture rejected for different reasons, other times no reason given. I called LSA several times for help, told someone would call back, and they never did. E-mails to LSA were ignored. Finally, by hook or crook on my part, a picture passed.

My attorney is in a major metro area, but he was shocked when the first worthless lead from the LSA (in his business its 10+ leads to get one good case) cost him $131. Partly my bad - I should have checked the cost estimator which did indicate that outrageous charge level in his metro area.

Next I decided to look into some surrounding areas. I found, a bit to my surprise, that I could add regional areas that did show much lower estimated charges. Wondering just how far google would let me stray from my client's metro location (it is "local" service ad, after all), I added a city 2000 miles away and was shocked to see google dutifully added that city to my areas of coverage. I of course deleted that distance area.

But when leads came in from the nearby rural areas I did add to the coverage area - areas with much lower estimated charges - I found they were charged at the very same rate that I had incurred with my initial listing in the major metro area!

This product is so not ready for our clients, and I am bit surprised I do not see here or in other locations more robust investigations and indeed warnings about this dicey product. This looks to me like an attempt to undercut and replace the non-revenue producing local pack. Meaningful antitrust action against Google cannot come soon enough for me!

larry
Any chance you can share the image(s) that was rejected?

 

[spadilla]

I would like to add to my LSA experience on behalf of a social security disability attorney client. The setup for the ad was difficult - rejection after rejection of her picture, many times the same picture rejected for different reasons, other times no reason given. I called LSA several times for help, told someone would call back, and they never did. E-mails to LSA were ignored. Finally, by hook or crook on my part, a picture passed.

My attorney is in a major metro area, but he was shocked when the first worthless lead from the LSA (in his business its 10+ leads to get one good case) cost him $131. Partly my bad - I should have checked the cost estimator which did indicate that outrageous charge level in his metro area.

Next I decided to look into some surrounding areas. I found, a bit to my surprise, that I could add regional areas that did show much lower estimated charges. Wondering just how far google would let me stray from my client's metro location (it is "local" service ad, after all), I added a city 2000 miles away and was shocked to see google dutifully added that city to my areas of coverage. I of course deleted that distance area.

But when leads came in from the nearby rural areas I did add to the coverage area - areas with much lower estimated charges - I found they were charged at the very same rate that I had incurred with my initial listing in the major metro area!

This product is so not ready for our clients, and I am bit surprised I do not see here or in other locations more robust investigations and indeed warnings about this dicey product. This looks to me like an attempt to undercut and replace the non-revenue producing local pack. Meaningful antitrust action against Google cannot come soon enough for me!

Darn, I wish I had seen this a few days ago. I just started down this road for a broker client of mine as well. So far the photo was accepted right away, but he has great headshots, so maybe that's why. I appreciate your input relating to the costs - we haven't gotten past verification yet, so I haven't seen what they charge. I know when they rolled this out, I kind of rolled my eyes knowing that it's a vanity placement and the leads will probably be all over the place in terms of quality. Real estate requires a lot of trust-building and I found it interesting that in the setup process they ask you what types of leads you want (buyer / seller / luxury / foreclosure) and leads me to think that perhaps there are certain queries being bid on behind the scenes.

 

[Wilsongs]

My social security disability lawyer client was charged $131 for a lead and was not happy. That is well above typical adword charges even for popular keywords like "disability lawyer". Also well above rate that lead generating services charge lawyers for leads. He can make no more than $6K on a case but a good personal injury case can be worth tens of thousands. He gets lots of unproductive inquiries in his business. There is nothing that would indicate the possibility that LSA leads would be higher quality. Local Service Ads looks like another Google shakedown to me.

Don't forget to dispute charges if warranted. I have a business attorney client who has yet to receive a quality lead through LSA. We've successfully disputed the majority of those calls.

 

[Larry Linson]

@Larry

larry
Any chance you can share the image(s) that was rejected?

I will take a look. I must say I have lost interest in using LSA for the reasons I set out in my post. I would be interested in responses to the substance of the issues I outlined.

Don't forget to dispute charges if warranted. I have a business attorney client who has yet to receive a quality lead through LSA. We've successfully disputed the majority of those calls.

Thanks for that info. I will do that.