Google Local Service Ads (GLSA) Update: Key Impacts and Strategies for Businesses

Google Local Service Ads (GLSA) Update: Key Impacts and Strategies for Businesses

Google has recently updated its Local Services Ads (LSAs), introducing significant changes that are reshaping the digital advertising landscape. This update, affecting various industries in different ways, underscores the need for businesses to stay informed and adapt quickly. 

In this blog, we’ll dive into the specifics of these changes, their impact on different sectors, and how your business can effectively navigate this new terrain. Whether you’re in HVAC, plumbing, or any other service industry, understanding these shifts is crucial for optimizing your online presence and maintaining a competitive edge.

Key Changes in GLSAs

One of the pivotal changes Google has introduced is the reduction in the number of ads displayed on desktop searches. Previously, users could see three ads, but now, this number has been reduced to just two. 

This change contrasts with mobile searches, where three ads continue to be displayed 50% of the time. This alteration in desktop ad display could have significant implications for how businesses strategize their advertising, especially considering the different user behaviors on desktop versus mobile platforms.

Another crucial update from Google is the implementation of a more even ad rotation system. This development aims to create a fairer competitive environment by preventing a single advertiser from dominating the ad space. In the past, it was possible for certain businesses to consistently secure top ad positions, potentially overshadowing smaller or newer competitors.

The new rotation system is designed to level the playing field, giving various businesses, regardless of their size, a fair chance to appear in these coveted ad spots. This change is significant for businesses relying on Google LSAs as it means adapting to a more dynamic and competitive ad landscape.

When people use Google to search for services, the ads they see can vary depending on whether they’re using a mobile device (like a smartphone) or a desktop computer. Google’s algorithms decide which businesses to show in the Local Services Ads section based on various factors, including the device being used for the search.

In only about 11% of searches, the same top two businesses appear in the Local Services Ads section on both mobile and desktop searches. In other words, 89% of the time, the businesses advertised in these top two slots are different when someone searches from a mobile device compared to a desktop.

This disparity means that if you’re only optimizing your ad strategy for one type of device (either mobile or desktop), you might be missing out on reaching a large portion of your potential audience. Your business might show up as a top ad on desktop but not on mobile, or vice versa.

How It Impacts Various Home Services Industries

HVAC Industry

  • Significant Cost Reduction: The HVAC sector saw advertising costs drop by about 57.11%.
  • What It Means: This suggests a less competitive ad space or more effective ad spend. HVAC businesses may find it easier and more cost-effective to reach potential customers, potentially leading to higher ROI on ad spend.

Plumbing Industry

  • Moderate Cost Reduction: A modest decrease of 9.59% in advertising costs was observed.
  • What It Means: Plumbing businesses may not feel a drastic change, but the slight reduction indicates a more balanced ad environment. This could mean steadier lead generation without substantial increases in advertising costs.

Electrical Industry

  • Notable Cost Reduction: There was a 34.62% reduction in advertising costs.
  • What It Means: Electrical services may benefit from the new ad distribution, suggesting an opportunity to gain market visibility with reduced competition. It’s a good time for these businesses to reassess and possibly increase their ad spend for better market penetration.

Strategizing for Success

Businesses need to adapt to these changes by fine-tuning their advertising strategies to align with these new market dynamics to stay competitive and make the most of their advertising budget. Navigating these updates in Google’s Local Services Ads can be complex, but you don’t have to do it alone. 

The experts at CI Web Group are well-versed in these changes and equipped to help your business adjust its online advertising approach effectively. Contact us for a strategy session, and let’s work together to ensure your business remains at the forefront of your industry.

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