Have you ever wished running ads on Google Adwords were as simple as buying ads in the Yellow Pages? Or that you could easily tell how many phone calls and website visits your ads were generating? If so, you’re not alone, and Google has responded by launching new product called Local Listing Ads. This limited beta release probably doesn’t affect you right now, but it could easily turn local internet marketing on its head.
Local Listing Ads in a nutshell
Local Listing Ads, only available for now in San Francisco and San Diego, appear in the same places Adwords ads normally appear and they look similar, except they contain no ad copy. They just contain a simple listing with basic business information. The major differences between Local Listing Ads and Adwords ads are under the hood (video explanation here).
Unlike Adwords ads, which are keyword auction based and require active management of keywords, bids, ad copy, placements, etc., Local Listing Ads are flat-fee based, meaning you pay the same regardless of how many people click on them, and require no active management. You also don’t even need a website because you can direct the user to a Google hosted page. But most impressive of all, Local Listing Ads contain integrated phone tracking and analytics. This means you’ll know exactly how many people view your Local Listing Ads and then call your business.
Why is this a big deal?
Google Adwords, Google’s flagship pay-per-click (PPC) product, serves many advertisers well, but can be intimidating for small businesses because it’s complicated to manage and track return on investment. In fact, it’s so complicated that a cottage industry of PPC management firms has sprung up to help small businesses run their PPC campaigns. Businesses who don’t hire professionals or beef up their in-house skills can easily waste a ton of money. Because of the complications and potential to waste money, some businesses avoid Adwords altogether.
Google’s new Local Listing Ads are an improvement over Adwords ads because there is no management required and performance tracking is included. Advertisers can set their ads up easily, never have to manage or optimize them, pay a flat monthly fee, and then easily see how many calls those ads generate. Best of all, the advertiser can easily see whether the cost per lead makes sense.
Good news and bad news, depending on your business model
For PPC management services like Yodle and Reach Local, this has got be scary news – their business models are built upon simplifying the complexities of PPC advertising for local businesses, which Google seems determined to make unnecessary. If you can easily setup ads, not have to manage them, and see exactly how many people are calling you because of your ads, then why not just handle them yourself? If Google is truly serious about making local advertising simple, then it’s eventually going to render PPC management firms unnecessary middlemen.
For local advertisers, this is great news of what’s to come. If you’ve been waiting to jump into Adwords for fear it’s too complicated or expensive, this program could be just what you’re looking for. On the other hand, if you’re already doing Adwords yourself or through a third party, then this program could be a better, more cost-effective way of advertising.
What is Google’s master plan?
Questions still remain about the future of the program. For example, without an auction-based pricing system, how will Google decide who gets precious first page real estate? Will all advertisers be rotated so that they all share equal exposure? Or is Google going to sell exposure on a first come, first service basis and create a massive land rush? Or could there be other plans in the works?
Also, since these flat-fee ads are sharing real estate with Google’s traditional, auction-based PPC ads, Google is effectively competing with itself. One has to wonder whether sacrificing auction-based ads in favor of flat-fee ads make financial sense for Google. After all, in certain verticals like law, the auction system allows advertisers to bid up the cost per click of certain keywords to $100, creating a gold mine for Google and a giant, money-sucking black hole for some advertisers. Maybe Google thinks a simplified product will attract so many new advertisers that it’s worth it to lose a bit of revenue per advertiser in some cases.
Sign up now if you can
While we wait to see Google’s next move, grab your Local Listing Ads if you can. They are currently only available in San Francisco and San Diego, so if you’re in either of those two cities, then sign up. Google is giving away one month free, so there’s nothing to lose.