Google launches branded LSAs, will charge for new customers

Google is rolling out an update to Local Services Ads (LSA), called Direct Business Search, which will display LSAs when users perform brand searches.

Details: “When someone searches for your brand or business directly on Google, your Local Services Ad will be eligible to appear. Your ad will be the only Local Services ad to appear in the results, and you'll only be charged for leads from new customers,” says Google.

• “Google screens calls that are connected via this ad. Callers will be asked if they’re a returning customer. If they indicate they are a returning customer, you will not be charged for the lead.”

The big picture: “Google’s trying to capitalize on brand searches now. They realized there was an opportunity,” Josh Crouch, CEO of Relentless Digital, told Homepros.

• The update comes on the heels of a disappointing earnings report, ad revenue-wise. 

What they’re saying: Although Google says it’ll only charge for new customers, “Everybody needs to be monitoring that,” Crouch said, referring to the possibility of Google accidentally charging for existing customers.

• “My worry is those [contractors] who aren’t engaged because the feature will be automatically turned on, so they have to log in and turn it off if they don’t want it,” he added.

Even though new customers may be “acquired” through other branding efforts like radio, contractors who leave the feature on will incur an additional cost per lead if they convert via brand search.

• In a LinkedIn post, Crouch noted he hasn’t seen any evidence that the cost per lead will be any less than typical LSAs. 

The bottom line: The update should be live for everyone within the next two weeks, and contractors will have to manually opt out if they don’t plan on utilizing it.