How to Run Google Ads for a Local Business
How to Run Google Ads for a Local Business
Local businesses can run Google Ads effectively using Local Service Ads (pay-per-lead), location-targeted Search campaigns, and Google Maps ads. Local Search campaigns typically deliver leads at $15–$50 per inquiry with 5–15% conversion rates on location-specific keywords like “plumber near me” or “dentist downtown.” Google Ads captures high-intent local searches — people actively looking for services in your area.
What Google Ads Campaign Types Work for Local Businesses?
| Campaign Type | How It Works | Cost Model | Best For |
|---|---|---|---|
| Local Service Ads | Google-verified badge, pay per lead | $15–$75 per lead | Home services, legal, healthcare |
| Search (location-targeted) | Text ads on location keywords | CPC ($2–$15) | All local businesses |
| Performance Max (local) | Automated across Search, Maps, Display | CPC/CPA | Multi-location businesses |
| Google Maps ads | Promoted pin in Maps results | CPC ($1–$5) | Retail, restaurants, walk-in businesses |
| Call-only ads | Direct phone call from search | Cost per call ($5–$30) | Emergency services, appointments |
Local Service Ads offer the best value for eligible businesses (home services, legal, healthcare, real estate) because you only pay for actual leads, not clicks. Search campaigns provide more control and work for any business type.
How Do I Set Up Location Targeting for Local Ads?
Target by radius (5–25 miles around your business address) or by specific cities and zip codes. Use “Presence: People in or regularly in your targeted locations” rather than “Presence or interest” to avoid showing ads to people who searched about your area but do not live there. For service-area businesses, target the entire service radius. For storefront businesses, target the realistic drive time radius. Add location extensions to show your address, phone number, and distance from the searcher directly in the ad.
What Keywords Should Local Businesses Target?
Focus on three keyword categories: service + location keywords (“plumber Austin TX,” “dentist near downtown Portland”), service + intent keywords (“emergency plumber,” “same day dentist appointment”), and service + modifier keywords (“best plumber in Austin,” “affordable dentist Portland”). Use Google’s Keyword Planner to find local search volume. Most local businesses need only 20–50 carefully selected keywords across 3–5 ad groups. Add negative keywords aggressively — exclude “free,” “DIY,” “jobs,” “salary,” and competitor brand names unless you deliberately want to bid on competitor terms.
What Budget Do Local Businesses Need for Google Ads?
Most local businesses can start seeing results with $500–$2,000 per month on Google Ads. The minimum depends on your market’s competitiveness and average CPC. Highly competitive markets (legal, insurance, home services in major metros) require higher budgets due to CPCs of $10–$50. Less competitive markets (restaurants, retail, services in smaller cities) work with lower budgets at $2–$8 CPC. Use Google’s Keyword Planner to estimate costs for your specific keywords and location. Budget 80% for Search campaigns and 20% for local retargeting.
How Do I Track Local Business Google Ads Performance?
Track phone calls (using Google’s call tracking number), form submissions, direction requests, and store visits (available for businesses with high enough foot traffic). Set up conversion tracking for all lead types and assign values — a phone call from Google Ads may be worth $50 on average based on your close rate and average deal value. Review search terms reports weekly to find irrelevant queries eating your budget. Compare Google Ads cost per lead against your other marketing channels to ensure optimal budget allocation. Leo helps local businesses optimize across Google Ads and Facebook Ads simultaneously.
Should Local Businesses Use Google Ads or Facebook Ads?
Use both for different purposes. Google Ads captures people actively searching for your service — these are the highest-intent leads. Facebook Ads builds awareness and stays top-of-mind with potential customers in your area. Start with Google Search campaigns to capture existing demand, then add Facebook Ads to generate new demand. A typical local business split: 60–70% Google Ads (capturing active searchers) and 30–40% Facebook Ads (building awareness and retargeting). Leo optimizes budget allocation between both platforms for local businesses based on real-time cost per lead data.