How Recent Changes to Local Service Ads Negatively Affect Small Businesses

Recent Changes to LSA

Google's recent update to the Local Services Ads (LSA) platform has introduced automated lead credits, marking a significant shift in how lead crediting is managed. This new system aims to automatically credit businesses for poor-quality leads, removing the need for manual disputes.

While the update promises time savings and operational efficiencies, it has sparked mixed reactions within the business community. Although the changes could potentially reduce costs and boost profits for Google, the overall impact has been largely negative, with only minimal positive outcomes for advertisers.

Pros:

• Time and Resource Savings: The primary advantage of automated lead credits is the reduction in time and effort spent disputing low-quality leads. For businesses heavily invested in LSAs, this change could lead to resource savings, allowing them to focus on other critical aspects of their operations.
• Decreased Costs and Increased Profits for Google: While not outright stated by the company, these updates enhance Google's profitability by decreasing operational costs and increasing revenue, as fewer refunds are issued and support costs are reduced.

Cons:

• Reliance on Google's Accuracy: The new system places substantial trust in Google's ability to automatically identify and credit low-quality leads. Given the platform's track record, some business owners are skeptical about Google's capacity to consistently deliver on this promise, fearing potential inaccuracies that could undermine their advertising efforts.
• Loss of Direct Support and Manual Corrections: A major concern with the recent LSA update is the removal of direct support from Google's team for lead disputes. Previously, businesses could correct errors or receive refunds for invalid leads through manual support. Now, they must rely solely on an automated system, increasing the risk of unresolved billing issues and putting pressure on small businesses, which could face financial strain due to inaccuracies in lead evaluation.
• Shift in Support Documentation and Feedback Focus: Google's support now focuses on advertiser feedback rather than resolving issues or disputes over invalid leads. Advertisers are expected to provide data to improve Google's systems without reimbursement or compensation. This can be tough for small business owners, who get less direct support and can only hope that this leads to improved lead quality in the future.
• Time and Resource Costs: Recent changes to the LSA platform, meant to save time, have ironically led to significant time and resource losses. Small businesses especially struggle with a flawed refund system, spending extra time to get credits. This inefficiency distracts them from growth and client services, increases costs, and may discourage them from using the platform as a cost-effective advertising option.

LSA Survival Guide for Small Businesses

To effectively navigate the recent Google Local Service Ads updates, small businesses should consider the following steps to maintain lead quality and optimize results amidst LSA changes:

• Consider Pausing LSA Campaigns: Seriously consider halting all Local Service Ads until the automated system is proven effective. This proactive pause can prevent wasted budget on unverified lead quality.
• Ensure LSA Profile Accuracy: Regularly review and update your LSA profile to accurately reflect only the services that your company genuinely offers within the specific areas you serve. This precision helps avoid confusion and reduces the risk of receiving irrelevant leads.
• Maximize Chances for Invalid Lead Credit: To increase the likelihood of receiving credits for invalid leads, Google agents recommend immediately asking for the caller's location and desired services to keep calls under 1 minute, including hold and call tree time. They noted that calls exceeding this duration are typically too long to be credited, and there is no current plan to adjust this metric.
• Diligently Monitor Lead Quality: Keep a close watch on lead quality by tracking instances where leads are not refunded and understanding the reasons. Identify any patterns and persistently pursue refunds for unsatisfactory leads.
• Document Every Lead Thoroughly: Maintain comprehensive records of every lead and do not solely rely on Google's platform for monitoring and reporting. This independent documentation ensures a clear understanding of lead performance.
• Stay in Regular Contact: Maintain consistent communication with Google support and other Local Service Ads professionals for updates and advice on recent changes. As Google frequently implements updates, staying informed is crucial to prevent negative impacts on your business.

By implementing these strategies, small businesses can effectively manage their investments in Google Local Service Ads and ensure that the leads they pay for remain valuable despite ongoing LSA changes.