Google tweaks Local Services Ads, will analyze calls to collect contractors’ pricing info

Google published a new set of terms for Local Services Ads (LSAs), giving it the right to analyze all data within LSA profiles, including phone calls, according to an email sent to advertisers this week.

Why it matters: The company set a six-week deadline for businesses to opt in, or else ads will no longer appear on Google Search or Maps. 

What’s happening: The terms allow Google to “modify, display, and use content” from LSAs, including pricing information and discounts gathered from phone calls and messages with potential customers, per the email. 

• “In effect, Google is positioned to create a comprehensive pricing map of LSA advertisers using inbound call data,” wrote search-focused news site Search Engine Land. 
• Though it’s speculative, gathering additional pricing info potentially allows Google to “influence bidding strategies based on advertiser revenue,” it added. 

Of note: While Google had already begun listening to phone calls last year, the new terms significantly widen its scope. 

What they’re saying: “There are serious privacy issues in shifting from simple call monitoring to full data synthesis,” Search Engine Land continued.

• “Even more concerning is the ability to build caller-level profiles — tracking someone through multiple calls and stitching together deeply personal context.”

Yes, but: Since Google feeds information across its products, contractors may gain visibility in other areas, including ‘AI Overviews’ — the quick answers that appear above typical search results — as Google’s technology builds richer business profiles.

• Think, in response to a search: “XYZ Heating & Air has been in business for over 50 years in the Tampa area. It has employees who speak fluent Spanish, is competitively priced, and is currently offering a financing special for new HVAC systems.”

What’s next: Contractors have until June 5 to opt in, which won’t affect existing budgets or campaigns. 

• While pushback is likely over the coming weeks, Google hasn’t indicated whether it’ll walk back any or all of the terms.
• Representatives for Google didn’t respond to requests for comment.