Automated Lead Reviews for Local Services Ads: Progress or Problem?

Google recently announced that starting in July 2024, it will automate its processes for crediting back poor-quality leads from its Local Services Ads (LSA) paid ad program. On the surface, this seems like a positive change, with less leg work required for reviewing and disputing leads. That said, the automation comes with a caveat that dramatically changes that outlook. This article will take a look at Local Services Ads, the credit policy, and what this change means for advertisers.

What Are Local Services Ads?

Local Services Ads, or LSAs, are a type of paid ad on Google search and map results that display an image of the service provider, Google reviews, and a call button. Whereas traditional Google Ads work on a pay-per-click basis, LSAs only charge the advertiser when someone calls from the ad and stays on the line for more than 30 seconds. There are other key differences, but the important thing here is that the charges for calls could be disputed under specific circumstances.

How the Credit System Worked

Google stores all of the recorded calls from Local Services Ads in a lead inbox. From there, the advertiser can go into each lead and listen to the call, take notes on the caller and disposition, and then either archive, dispute, or mark the lead as booked. There were a number of reasons Google allowed for disputes, including but not limited to spam calls, wrong numbers, repeat callers, callers from outside the target location, and callers who simply called for something the company doesn’t offer. If the dispute was approved, the cost of that call would then be credited back to the account.

What Is Changing?

Under the new system, all calls will be checked and monitored for disputes automatically by AI. Manual disputes will be replaced by a feedback system that provides no credit. Additionally, they will no longer be crediting accounts for calls that were from wrong locations or for services that were not advertised.

Pros and Cons

The biggest pro would be the potential time saved from not having to manually review calls for disputes. Google also claims that their shift in focus will potentially lead to more credits from this automated system. On the flip side, removing the disputes for the wrong service or location seems like a major con. In our experience reviewing and disputing calls, wrong service/location was the second biggest reason for disputed calls behind spam. Additionally, the time saved is less impactful if calls still need to be reviewed for the new feedback system.

The Bottom Line

As with most changes we see from Google these days related to ads, the bottom line is their bottom line. Their claim that they will “credit more leads on average” is very suspect, as the most likely outcome is advertisers paying more while having less control and Google lining their coffers with more advertiser revenue. The best thing that the advertisers can do in response is continue to monitor leads, submit feedback as often as possible, and ensure that all settings for the LSAs are set optimally. For more information on how to start using LSAs or this change, contact the team at PaperStreet today.