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Complete Guide

Google Ads for Local Businesses

The Complete Geographic Domination System for Restaurants, Retail, Professional Services & Contractors

20 min readUpdated January 2026

Local businesses have a massive advantage in Google Ads: geography is your moat. A $500/month budget focused on a 10-mile radius can outperform a $5,000/month budget spread across an entire country.

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1Part 1: Geographic Targeting Strategy

Defining Your Service Area

Before launching any campaign, define your actual service area:

Business TypeTypical Service Area
Restaurant/Cafe5-10 mile radius
Retail Store10-15 mile radius
Professional ServicesCity/metro area
Home Services25-50 mile radius
Emergency Services15-30 mile radius

Key Questions:

  • How far do customers actually travel to reach you?
  • Where do your best customers come from?
  • Are there geographic barriers (rivers, highways, borders)?

Location Targeting Options

Option 1: Radius Targeting

Draw a circle around your business location:

  • 5 miles: High-frequency businesses (cafes, convenience)
  • 10 miles: Regular visits (restaurants, retail)
  • 15-25 miles: Considered purchases (professional services)
  • 25-50 miles: Specialty/destination businesses

Option 2: Location Lists

Target specific cities, postcodes, or regions for more precise control.

Option 3: Hybrid Approach

Combine radius + specific locations for complex service areas.

Critical Setting: People In vs. Interested In

OptionWhat It MeansWhen to Use
People in or regularly inOnly people physically in your areaMost local businesses
People in or interested inPeople in area OR searching about areaTourism, moving services

Default is "interested in"—change this for most local businesses!

2Part 2: Local Keyword Strategy

The Local Keyword Framework

Category 1: "[Service] Near Me" Keywords

Keyword StructureExamples
[service] near me"dentist near me", "plumber near me"
[service] nearby"restaurants nearby", "gym nearby"
[service] close to me"coffee shop close to me"

Volume: Very High | Intent: Very High | Competition: Medium-High

Category 2: "[Service] + [Location]" Keywords

Keyword StructureExamples
[service] [city]"accountant London", "hair salon Manchester"
[city] [service]"Leeds restaurant", "Bristol dentist"
[service] [postcode]"plumber SW1", "electrician EC2"

Category 3: Emergency/Urgent Keywords

Keyword StructureExamples
emergency [service]"emergency plumber", "emergency locksmith"
24 hour [service]"24 hour vet", "24 hour mechanic"
same day [service]"same day dry cleaning"

Volume: Lower | Intent: Extremely High | Value: High

Building Your Local Keyword List

  1. Core Services: List all services you offer
  2. Add Location Modifiers: [service] + [city], [service] + [suburb], [service] + near me
  3. Add Intent Modifiers: best [service], affordable [service], emergency [service]
  4. Problem Keywords: [problem] + [location] (e.g., "blocked drain London")

Match Type for Local

Keyword TypeRecommended Match
High-value service termsExact match
"Near me" termsExact match
Location + serviceExact or Phrase match

Why Tighter Match: Local budgets are limited—every click needs to count.

3Part 3: Google Business Profile Integration

Why GBP Matters for Ads

Your Google Business Profile directly impacts ad performance:

ImpactHow
Location extensionsShow address with ads
Call extensionsClick-to-call from listing
Map visibilityAppear in local pack
ReviewsBuild trust in ads
Business hoursShow when you're open

Connecting GBP to Google Ads

  1. Claim and verify your Google Business Profile
  2. Link to Google Ads (Tools → Linked accounts → Google Business Profile)
  3. Enable Location Assets in campaign settings

Optimizing GBP for Ads

ElementOptimization
Business nameInclude keyword if legitimate
CategoriesSelect all relevant categories
PhotosHigh-quality, recent, relevant
ReviewsRequest from happy customers
PostsRegular updates
Q&AAnswer common questions
HoursKeep accurate, especially holidays

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4Part 4: Local Service Ads

LSAs vs. Standard Google Ads

Local Service Ads:

  • Pay per lead (not per click)
  • Appear above standard search ads
  • Google Guaranteed badge
  • Limited to specific service categories

Standard Google Ads:

  • Pay per click
  • More control over targeting
  • Available for any business
  • More ad format options

When to Use Each

Choose LSAs IfChoose Standard Ads If
Eligible service categoryNot eligible for LSAs
Want pay-per-lead modelNeed more control
Can pass Google screeningQuick launch needed
Phone calls preferredWebsite traffic priority

Best Approach: Run both when possible. They show in different positions.

LSA-Eligible Categories

Currently eligible categories include: Plumbers, Electricians, HVAC, Locksmiths, Roofers, Cleaners, Lawyers, Financial planners, and many more. Check Google's current list for your service.

LSA Optimization

FactorHow to Optimize
Google GuaranteedComplete screening process
ReviewsMore reviews = better ranking
ResponsivenessAnswer calls quickly
Service areasDefine precisely
HoursAccurate availability

5Part 5: Call Tracking and Store Visits

Phone Call Tracking Setup

Option 1: Call Extensions

SettingRecommendation
Phone numberPrimary business line
Call reportingEnabled
Minimum duration60 seconds
Count as conversionYes

Option 2: Call-Only Ads

  • Entire ad designed for calls
  • No website click option
  • Shows phone number prominently
  • Best for emergency services

Option 3: Website Call Tracking

  • Track calls from your website
  • Dynamic number insertion
  • Connects ad click to call

Store Visit Tracking

For physical locations, Google can track store visits:

Requirements:

  • Linked Google Business Profile
  • Sufficient ad traffic
  • Location with foot traffic
  • Multiple store visits to measure

Conversion Values for Local

ConversionTypeSuggested Value
Phone call (60+ sec)Primary$50-100
Form submissionPrimary$30-50
Direction clicksSecondary$10-20
Store visitSecondary$20-50

6Part 6: Ad Copy for Local Businesses

Location in Headlines

Include location in ads to increase relevance, build local trust, and pre-qualify clicks:

GenericLocal-Focused
"Fast Plumbing Service""Fast Plumbing Service in Leeds"
"Expert Accountants""Leeds Accountants Since 1995"
"Best Italian Restaurant""Authentic Italian in Soho"

Trust Signals for Local

Trust SignalExample in Ad
Years in business"Serving Manchester Since 1990"
Local focus"Your Neighbourhood Electrician"
Reviews"500+ 5-Star Reviews"
Guarantees"100% Satisfaction Guaranteed"
Response time"Same Day Service Available"

Responsive Search Ad Structure

Headlines (15 options):

  • 3-4 with location name
  • 2-3 with "near me" relevance
  • 3-4 with key benefits
  • 2-3 with trust signals
  • 2-3 with call to action

Pin Strategy:

  • Pin location headline to Position 1
  • Pin CTA to Position 2 or 3

Ad Extensions for Local

ExtensionPurposeExample
LocationShow address123 High Street, London
CallClick to call020 1234 5678
SitelinksOther pagesMenu, Directions, Hours
CalloutsBenefitsFree Parking, Open Sundays

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7Part 7: Budget Strategy for Local

Calculating Local Budget

Start with your goals:

QuestionExample Answer
How many customers/month do you want?20
What's average customer value?$500
What can you afford per customer?$50
What's typical conversion rate?5%
What's typical CPC?$2.50

Budget Calculation:

20 customers ÷ 5% conversion = 400 clicks needed

400 clicks × $2.50 CPC = $1,000/month budget

Budget Allocation

For Single Location:

Campaign% of Budget
Core services (Search)60-70%
Brand terms10-15%
Remarketing15-20%
Testing5-10%

Small Budget Optimization

If budget is under $500/month:

StrategyImplementation
Narrow targetingTightest radius possible
Top services onlyBest-performing services
Exact matchMinimize waste
Peak hoursAd scheduling
Call focusCalls over website clicks

8Part 8: Multi-Location Management

Campaign Structure Options

Option 1: Single Campaign, Location Bid Adjustments

  • One campaign for all locations
  • Adjust bids by location performance
  • Simplest to manage
  • Best for: 2-5 similar locations

Option 2: Separate Campaigns Per Location

  • Individual campaign for each location
  • Complete control over budget allocation
  • More management effort
  • Best for: Different market sizes, varying competition

Option 3: Hybrid Approach

  • Group similar locations in campaigns
  • Separate campaigns for major markets
  • Balance control and efficiency
  • Best for: 5+ locations with variation

Naming Convention for Multi-Location

[Brand] - [Location] - [Campaign Type] - [Target]

Examples:

  • AcmePlumbing - London - Search - Emergency
  • AcmePlumbing - Manchester - Search - Core Services
  • AcmePlumbing - AllLocations - Brand

Performance Comparison Across Locations

Metrics to Compare:

  • CPC by location
  • Conversion rate by location
  • Cost per conversion by location
  • Impression share by location

Rebalancing Budget:

  • Monthly review of location performance
  • Shift budget to top performers
  • Investigate underperformers before cutting

9Part 9: Seasonal and Time-Based Strategies

Ad Scheduling for Local

Business TypeRecommended Schedule
RestaurantMeal times + 1 hour before
Professional servicesBusiness hours
Emergency services24/7
RetailStore hours + 1 hour

Setting Up Ad Schedules:

  1. Campaign settings → Ad schedule
  2. Set hours and days
  3. Consider bid adjustments for peak times

Seasonal Adjustments

SeasonAdjustments
SummerHVAC cooling, outdoor dining, landscaping
WinterHVAC heating, snow removal, indoor activities
HolidaysGift shopping, catering, travel
Back to schoolEducation, supplies, services

Implementation:

  • Adjust budgets seasonally
  • Update ad copy for season
  • Pause irrelevant services

Day-of-Week Patterns

Day TypeTypical Pattern
MondayBack to business, high B2B
MidweekSteady performance
FridayPlanning for weekend
WeekendConsumer services peak

Action: Review day-of-week data in reports, adjust bids accordingly.

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10Implementation Checklists

Local Campaign Launch Checklist

Pre-Launch:

  • ☐ Define service area (radius or locations)
  • ☐ Set up Google Business Profile
  • ☐ Link GBP to Google Ads
  • ☐ Configure call tracking
  • ☐ Set up form conversion tracking
  • ☐ Build landing page with local focus

Keyword Setup:

  • ☐ List core services
  • ☐ Add location modifiers
  • ☐ Add intent modifiers (near me, best, etc.)
  • ☐ Format as exact match
  • ☐ Create negative keyword list
  • ☐ Include other cities/areas you don't serve

Campaign Configuration:

  • ☐ Set geographic targeting (people IN location)
  • ☐ Configure ad schedule
  • ☐ Enable location extensions
  • ☐ Enable call extensions
  • ☐ Set bidding strategy (Maximize Conversions)
  • ☐ Set daily budget

Weekly Optimization Checklist

  • ☐ Review search terms for local relevance
  • ☐ Add negative keywords (other locations, etc.)
  • ☐ Check call conversion data
  • ☐ Review geographic performance
  • ☐ Assess ad schedule performance
  • ☐ Monitor competitor activity
  • ☐ Respond to GBP reviews

Monthly Review Checklist

  • ☐ Compare month-over-month performance
  • ☐ Analyze conversion by location
  • ☐ Review and update ad copy
  • ☐ Assess bid strategy performance
  • ☐ Evaluate budget allocation
  • ☐ Plan seasonal adjustments
  • ☐ Update GBP with new photos/posts

Key Takeaways

Define service area precisely—don't waste budget outside your zone.

Use "people in" targeting—not "interested in" for most local businesses.

"Near me" keywords are gold—high intent, high value, prioritize these.

Location + service keyword combinations—build comprehensive lists.

Google Business Profile is essential—link it and optimize it.

Consider Local Service Ads—if eligible, run alongside standard ads.

Track phone calls—often your best leads with 60+ second duration filter.

Small budgets can win—with tight targeting and focused strategy.

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Frequently Asked Questions

It depends on your business type. Restaurants typically use 5-10 miles, retail stores 10-15 miles, professional services can cover the entire metro area, and home services often extend 25-50 miles. Start with where your best customers currently come from.