Google Local Services Ads Expanding Bid Mode in Home Services Categories

Google appears to be expanding auction-based pricing to Google Local Services Ads to many, if not all, businesses in home services verticals on November 16, 2020. Recenlty Google began testing the bid mode option for businesses in home services verticals in some markets in the U.S., Canada, and Europe, which allowed participating businesses to set the maximum amount they are willing to pay for a lead from Local Services Ads.

The minimum bid will be equal to the current rate Google set for a given vertical and market. For HVAC contractors in the Dallas, TX area, their minimum bid will be $25, which is the rate they have been paying currently. The maximum amount a business can bid is 2.5 times the minimum bid. So, the highest amount an HVAC contractor in Dallas can set their bid to is $63 ($25 x 2.5 = $62.50 which they round up to $63).

It appears they are rolling out to all verticals now. The settings won’t take effect until November 16 (except for businesses allowed to participate in the test that began October 8).

Check the post for more info.