LSAs Moving to Auction

[awfoste]

Hi Everyone,

(This is my first post!)

Saw that LSAs are moving to Google's auction. Is anyone currently using the auction instead of paying a fixed rate per call? If so, can you offer any insight?

It's hard not to be pessimistic about the affects this will have on the cost per call. I'm hoping some early adopters can share recommended tactics, if this is already live for some businesses. But with this move, plus Google charging for GMB, feels like we're gonna need a bigger budget...

Google brings bidding to Local Services Ads

Only selected advertisers will get access to the auction during the beta period.

searchengineland.com

 

[Tony Wang]

I just came across this article myself just now. No surprise. In fact I'm surprised it didn't happen sooner. Paying $25/lead in some verticals was a steal, and it was only a matter of time...

I'd like to start a betting pool to see how long it will take for LSA bids to approach PPC bids in some of the high dollar verticals. Any takers?

 

[PKLilikoi]

I just came across this article myself just now. No surprise. In fact I'm surprised it didn't happen sooner. Paying $25/lead in some verticals was a steal, and it was only a matter of time...

I'd like to start a betting pool to see how long it will take for LSA bids to approach PPC bids in some of the high dollar verticals. Any takers?

It already has and businesses are taking advantage right off the bat. People are now able to get multiple listings via LSA bidding. Take a look at the snapshots. This is going to be one wild ride with the bidding. I've also noticed certain keyword search terms will apply a picture to the LSA which makes it even more visible.

 

[TomW]

It already has and businesses are taking advantage right off the bat. People are now able to get multiple listings via LSA bidding.

Having multiple listings for a business isn't new or related to the bidding feature though. I can't speak to lawyer and professional services LSAs but bidding is in beta for home services categories and doesn't take effect until Oct. 8 so this shouldn't be coming into play for the roofing example.

Three years ago I sent in an example of a result showing 3 LSA for one business so I know they are aware of this happening.

 

[PKLilikoi]

Having multiple listings for a business isn't new or related to the bidding feature though. I can't speak to lawyer and professional services LSAs but bidding is in beta for home services categories and doesn't take effect until Oct. 8 so this shouldn't be coming into play for the roofing example.

Three years ago I sent in an example of a result showing 3 LSA for one business so I know they are aware of this happening.

Thank you for confirming Tom!

 

[TomW]

Hi Everyone,

(This is my first post!)

Saw that LSAs are moving to Google's auction. Is anyone currently using the auction instead of paying a fixed rate per call? If so, can you offer any insight?

It's hard not to be pessimistic about the affects this will have on the cost per call. I'm hoping some early adopters can share recommended tactics, if this is already live for some businesses. But with this move, plus Google charging for GMB, feels like we're gonna need a bigger budget...

Google brings bidding to Local Services Ads

Only selected advertisers will get access to the auction during the beta period.

searchengineland.com

With so many vertical and markets I think it's really going to vary quite a bit. It's going to require a lot of testing and experimenting! And if you find something that seems to work well, plan on having to adjust again before too long, particularly since only a certain amount of advertisers may even have the bidding option due to it being a beta test.

 

[Contractor]

Since this thread is already here, I am just going to post this info here.

I received an email from LSA today and took screenshots of the email as well as the new dialog boxes in my LSA account. Mind you, I only use LSA right now for a few extra leads per week and only for 1 special service, so my spend is very low. My per lead rate has always been $18 since LSA first started.

 

[TomW]

It looks like they are expanding this quite a bit... possibly to all business types and markets for home services Local Services Ads.

 

[Contractor]

It looks like they are expanding this quite a bit... possibly to all business types and markets for home services Local Services Ads.

So can you tell me what this means for me, the end user? Will I not get any ads when mine are set to $18 and the other guys are set to $24?

How is this going to play out? What should I be looking out for? Thanks in advance.

 

[Tony Wang]

@DontBiteUrNails it'll be like most other forms of advertising, no doubt. You'll just have to test and see what works for you. Keep an eye on your bid, your spend, your leads, and adjust until you get what you want.

And once you settle on a satisfactory spend, don't worry, Google will push the new service even more to increase competition and make you spend even more

 

[Contractor]

Is there a way to see what my competition is bidding on ads? Or do I just have to keep raising my own bid if I don't get as many calls as I used to?

Will a company that spends $50 on each ad always show before the better companies (reviews, distance, etc.) that only spend $18?

 

[nixid]

Is there a way to see what my competition is bidding on ads? Or do I just have to keep raising my own bid if I don't get as many calls as I used to?

Will a company that spends $50 on each ad always show before the better companies (reviews, distance, etc.) that only spend $18?

I wonder if an auction format might have the opposite effect on categories where the minimum is currently $150 per lead, and drive prices down?

 

[TomW]

Is there a way to see what my competition is bidding on ads? Or do I just have to keep raising my own bid if I don't get as many calls as I used to?

Will a company that spends $50 on each ad always show before the better companies (reviews, distance, etc.) that only spend $18?

No, you won't be able to see the bids of your competitors. A business with the highest bid won't necessarily always have top placement but should expect better visibility and more leads. In your case, the maximum bid would be $45 because it's capped at 2.5x the minimum (at least for now).