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Question

How does Google Ads work for local businesses?

You choose which search terms your ad appears for, which area around your business and how much you spend per day, and you only pay when someone clicks or calls.

The choices you make, how Google decides who ranks first, and what ten enquiries a month cost when you work backwards.

How Google Ads works for local businesses: the team of an accounting firm in front of their office in Ghent

By , COO

3 min read

What it looks like for your business

  • If you are a tradesperson working within 20 kilometresSet a radius around your address, targeting people who are there, and show your phone number in the ad.
  • If customers come to your shop or premisesLink your Google Business Profile so the ad shows your address, a map and the distance.
  • If you mainly want to appear on Google MapsUse location assets; your ad then appears on the map too, marked Sponsored.
  • If you only have a few euro a dayThat works, as there is no minimum, but with too few clicks a month you learn little about what works.
  • If you have no website of your ownThe click lands nowhere that explains your offer; a profile alone is too thin to pay for clicks.
On this page
  1. 01The choices you set
  2. 02How Google decides who ranks first
  3. 03Your page weighs as much as your click price

The choices you set

ChoiceWhat you setLocal exampleWhat to watch
Search termsthe words you appear forroofer plus your townexclude what you do not do, such as jobs or free
Areaa radius of at least 1 km or a list of towns20 km around your addresspresence or interest
Budgetan amount per day, no minimumwhat you can sustain for thirty daysenough clicks to learn from
Assetsphone, address, links to pagescalling straight from the adthe hours someone answers

For search campaigns Google recommends targeting people who are in or interested in your area; if you only serve people on site, choose those physically there. A call from the ad costs the same as a click on the headline. On a busy day Google may spend up to twice your daily budget, but never more than 30.4 times it in a month. How to make that choice and the other settings is covered step by step in how to set up Google Ads.

How Google decides who ranks first

The highest bid does not simply win. Google ranks on your bid, the quality of your ad and of the page it leads to, thresholds per position, the competition, the search context and the expected impact of assets such as your phone number. A good ad with a page that answers the search exactly can rank higher for less than a bigger bid with a weak page. That page is the work of a landing page, not of the ad. How often people click is your click-through rate; what counts as good is in what is a good CTR in Google Ads.

Two changes to know about: Dynamic Search Ads are folding into AI Max, where Google picks more search terms itself, as the news on AI Max explains. And if you measure with Google's tag, your cookie banner decides what you see; see Consent Mode and Google Analytics.

Ten enquiries a month, worked backwards

Ten enquiries a month

Conversion of your page
5 percent
Clicks needed
200
Cost per click
2.50 euro
Per month
500 euro
Daily budget500 euro divided by 30.4
16.45 euro

Same goal, a weaker pageMonthly budget for ten enquiries

  • Page converting 2.5 percent1,000 euro
  • Page converting 5 percent500 euro
A roofer wants ten enquiries a month, his site converts 5 percent of visitors and a click costs 2.50 euro. Below, the same goal with a page that convinces half as well.

Your page weighs as much as your click price

In the example ten enquiries cost 500 euro a month, a daily budget of 16.45 euro. With a page that convinces half as well, the same enquiries cost twice that. Turn enquiries into work: if a job brings 2,000 euro of margin and one in three quotes is accepted, ten enquiries bring in well over 500 euro of clicks. Click prices vary widely per sector and country; in Belgium campaigns see 0.30 to 8 euro. Work out your own case with the Google Ads budget calculator and the ROAS calculator; full prices are in Google Ads cost. Whether the account itself costs anything is in is Google Ads free, and whether ads or organic search cost you less per customer, in SEO or Google Ads.

Check your local campaign before it goes live

  • The area targets presence if you only work on site.
  • Search terms such as jobs, free or do it yourself are excluded.
  • Every ad leads to a page about exactly that service, not your home page.
  • Your phone number is in the ad, with the hours someone answers.
  • Enquiries and calls are tracked, so you know what a customer costs.

Google Ads

How VBS sets up your local campaign

We start with the page, not the ad: a page per service that answers what your customer types, with a button to call or ask for a quote. For SN Group, a builder in Ghent, we built a cost calculator that lets a visitor assemble a price. Then we set up the campaign with the search terms and area that fit you, and link your Google Business Profile. That is Google Ads.

A campaign that starts with your page?

We build the page per service and set up the campaign with the area and search terms that fit your business.

Optional, if you prefer a call.

What do you want to achieve, and what is already there?

We only use your details to reply to you.