Google Ads for Local Business: The Complete Guide

Running a local business today means competing both on the street and online. If you’re not showing up when people nearby search for your services, you’re leaving money on the table. That’s where Google Ads for local business comes in.

Whether you’re a dentist, plumber, boutique owner, or restaurant manager, Google Ads helps you reach customers right when they need you. And the best part? It doesn’t take a massive budget to get started.

This guide walks you through how to use Google local business ads to get more traffic, calls, and sales.

Why Google Ads Works for Local Businesses?

Google Ads offers a powerful way to get in front of people who are actively searching for what you offer. Unlike traditional ads, you’re not guessing who might be interested, you’re connecting with people who already are.

Benefits of Google Ads for local business:

Appear at the top of Google Search and Maps
Target customers by location, time, and device
Set flexible budgets to control ad spend
Track every click, call, and visit

When done right, local businesses can see measurable ROI even with modest budgets.

Types of Google Ads for Small Local Business

Not all ads are created equal. Google offers several formats tailored for local visibility.

1. Google Local Service Ads (LSAs)

These show up at the very top of search results and are perfect for service businesses like electricians, roofers, or HVAC pros.

Pay per lead, not per click
Only available in select industries and regions
Show your rating and “Google Guaranteed” badge

2. Google Search Ads

The classic text ads that appear above organic results. Great for targeting local keywords like “best bakery near me.”

Works well for promotions or time-sensitive offers
Customize with location extensions and call buttons

3. Google Maps Ads

These appear directly in Google Maps when users look for nearby businesses.

Ideal for foot traffic-focused businesses
Highlight open hours, directions, and reviews

4. Google Display Ads

Visual ads that show across the web. While not local by default, you can geo-target them to reach local audiences.

Good for brand awareness in your community
Affordable CPM for small budgets

Setting Up Google Ads for Your Local Business

Follow these steps to get your local ads up and running:

1. Define Your Goal

More calls? Store visits? Website bookings?
Choose a campaign type that matches your goal (see campaign types).

2. Set Your Budget

Start small (e.g., $10-$20/day) and scale up
Adjust based on performance and seasonality
Understand typical Google Ads budgets for small businesses

3. Choose the Right Keywords

Use tools like Google Keyword Planner
Include location-based terms (“near me,” city name, zip code)
Add negative keywords to avoid wasted clicks

4. Target the Right Audience

Focus on users within your service radius
Set up location targeting by zip code or city
Use ad scheduling to show ads during business hours

5. Write Compelling Ad Copy

Mention your USP (“24/7 Emergency Repairs,” “Locally Owned”)
Use call-to-action phrases like “Book Now” or “Call Today”
Match your copy up to your website;landing pages for better Quality Score (and lower cost per click)

How to Optimize Google Local Business Advertising?

Once your campaigns are live, continuous optimization is key.

Tips for better local ad performance:

Use call extensions and location extensions
Monitor search terms and add negatives for irrelevant searches
Pause keywords that aren’t converting well (driving sales or leads)
Test multiple ad variations with different headlines and descriptions
Review performance by device and location
Make sure to track conversions (form submissions, phone calls and sales)

Hiring a Google Ads agency can help you skip the learning curve and start seeing results faster.

Google Ads vs. Google Local Service Ads: Which Is Better?

Google offers two ad products that are ideal for local businesses.

Both options have their place. Here’s a quick comparison:

Google Search Ads:

Offers more control over copy and keywords
Better for time-sensitive offers
Works well for a broad range of industries

Google Local Service Ads:

Pay only for qualified leads
Limited to specific industries
Highly visible at the top of search results

If you’re eligible, run both and compare cost per lead.

Common Mistakes Local Businesses Make with Google Ads

Avoid these pitfalls that drain budgets and reduce ROI:

Targeting too broad an area or outside of your service area
Not adding negative keywords
Sending traffic to a poor or broken landing page
Ignoring mobile optimization
Forgetting to test ad copy and CTAs

Working with a partner for local PPC ads management can help you avoid these traps and stay on track.

Measuring Success: What to Track

Success in Google Ads isn’t just about clicks. Focus on:

Click-through rate (CTR)
Conversion rate (what % of clicks become calls, form fills, store visits & sales)
Cost per lead
Return on ad spend (ROAS)
Local impression share

Use Google Ads reports and dashboards to track performance over time.

Final Thoughts: Make Google Ads Work for Your Local Business

Google Ads is a game-changer for small and local businesses trying to get noticed online. With the right setup and ongoing optimization, it can drive qualified leads quickly and significantly boost your bottom line.

Whether you’re just starting out or want to refine an existing campaign, the above tips should help you maximize your local presence.

Looking to get expert help with your campaigns?

Contact Velocity for results-driven strategies built for local growth.