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Google Home Service Ads - How Will It Change Adwords?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

So Google Home Service Ads is now expanding across the nation to many major cities by October 23 2017.

 

We have a lot of home service accounts running Adwords. Some of them have some very large budgets. So we're wondering how this will impact them as the HSA's (Home Service Ads) start moving into each city.

 

Search results would normally return 4 paid ads, then a local 3-pack, then organic, finally 2-3 paid ads at the bottom. In the test cities of CA, we're instead seeing the 3 HSA ads on top, followed by 2 legacy adwords ads, the rest is the same (organic with some ads on the bottom).

 

We're looking to hear from anyone who ran heavy Home Service related Adwords accounts in the test cities prior to the testing. And how the transition affected the client's results (lead volume, lead quality, sales amounts, cost per lead, etc). 

 

My thought it that small accounts will transition pretty easily. The client's avg sale amount will probably drop as each lead now goes to multiple contractors, and the user is never given a  chance to visit the client's website to differentiate themselves beforehand. So it then basically becomes a bidding war for the lowest price for the home service. But the lead volume should be about equal for small accounts.

 

My bigger concern is for large accounts that have heavy ad spend and always bid to the top positions 18 hours a day. These kind of accounts can really depend on their PPC accounts to drive their call volume. Organic and Local Organic have not cut it for quite some time, as they are already pushed so far down the page. So once Adwords goes to only 2 spots on top, those positions will get more expensive. And we expect CTR and overall clicks will drop as many clicks are lost to the HSA's right above them. 

 

So is there anyone with Home Service clients in these test cities? What are your observations thus far? I'd love to get some real world feedback! 

2 Expert replyverified_user

Google Home Service Ads - How Will It Change Adwords?

Top Contributor
# 2
Top Contributor

Hi @Adam M,

 

Sorry no one has been able to add any feedback, yet. 

 

Personally, my agency has not run any HSA product, but have been in advertising since the late 1980's and with digital promotion of various types since 1996. This leaves me with general experience in seeing disruptive actions that have come and gone more than once.

 

The latest thing that comes to mind is the shake up from Google removing the side ads from the SERPs (search engine results pages) to align a uniform look to their mobile and desktop user experience (and make room for the Google Knowledge Panel), which gives us the current layout. The digital world went abuzz for months before, during and after... with much FUD (fear, uncertainty and death) surrounding the change. Then it came and went with some anxiousness and concern but not to the level of the FUD. I think things will fall into place and those that are smart, such as yourself, are thinking it through now so that they can position themselves to remain relevant... and will adapt just fine.   

 

Yes, I do think it will be disruptive and bring about a change to CTR and costs for the SERPs with HSA products in use. From there, I am not too sure to what extent. I am still paying close attention to things out west, like you are, and do not have a definitive answer to your inquiry, but I wanted to post and bring this subject back up to see if anyone would find it and add to it.

 

Thanks for visiting Google Partners and sharing your insightful viewpoint on this intriguing subject. 

 

Kind Regards,

 

James

 

____________________________________________________________
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Google Home Service Ads - How Will It Change Adwords?

Top Contributor
# 3
Top Contributor

Hey @Adam M,

 

It is a bit to early to see how these ads will share real estate.

I wouldn't worry about the big advertisers taking over top position, rather I would optimize your smaller campaigns to have more pertinence and higher quality ads that drive through to a great user experience.

 

Like all other type of ads, Google will always show preference to quality over bids.

 

Good luck and let's see how HSA's fit into the SERP

Google Home Service Ads - How Will It Change Adwords?

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

I've been doing heavy online marketing and advertising for service companies since before Google was ever a search engine. Lol. We run some client PPC accounts that spend $20K a week, and are optimized through every step of the funnel, down to the amount of revenue produced by each click and call. So, I know how the digital search landscapes have changed. And I'm aware of how quality changes things. When running that kind of ad spend, each improvement makes a huge difference.

 

All indications are that this will disrupt home services online marketing more than anything we've ever seen. As a numbers guy, I just want to know to what extent it will change things. I want to be prepared in advance.

 

Some of our big clients may run 50 service trucks. Their organizations employ a lot or people. They depend on paid ads to drive a large part of their calls.

 

Organic search just does not cut it anymore. Even with #1 organic rankings across the board, the organic results will not generate even 25% of what a paid ad in position 1-2 will produce. So Google owns these businesses with those tops paid positions.

HSA ads are a Google direct product. Agencies are not involved at all. Google will only work directly with the business. It is administered through Adwords Express. So, whatever shifts over to HSA, leaves our agencies.

 

Also, HSA ads are served up round-robin. There is no bidding, just a weekly budget that you set. Everyone is on equal footing. And if you look at current ads running in places like San Francisco, they all have review ratings of just a few decimals difference. 4.5, 4.6, 4.7 So no big quality differentiators here.

 

I have not found a real-life answer as to whether a business will be allowed to run both HSA and legacy Adwords ads on the same or similar search queries. But I've seen some internal notes that imply a business can only run one or the other, not both. I'm not sure how up-to-date that info is though.

 

I'm really surprised no agencies from CA has posted anything online mentioning the changes they've seen since HSA launched out there.

 

Google Home Service Ads - How Will It Change Adwords?

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

Hi! 

 

I am running campaigns for locksmith services and after HSA started, ads position shows from 3. Position 1 and 2 disappeared.

 

Do you know why? I have many scripts that change cpcs depending on position and now it cant work since I have campaigns in cities with HSA running (positions from 3) and other without (normal positions).

 

Thanks!!

Google Home Service Ads - How Will It Change Adwords?

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭

Federico,

 

In the cities where HSA started running, how has your volume of clicks and conversions changed in those areas?

On your script problem, I'd guess you need to break those campaigns up into separate campaigns (campaigns where HSA is active, campaign where there is no HSA). Then have two scripts, one for each type of campaign.

 

Thanks,

Adam

Google Home Service Ads - How Will It Change Adwords?

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭

I'm in South Florida. When is Home Service coming to my area and how do I get listed in the guaranteed program?

Google Home Service Ads - How Will It Change Adwords?

Visitor ✭ ✭ ✭
# 8
Visitor ✭ ✭ ✭

@Adam M

 

I have clients who have experience a loss in visibility for their legacy Adwords ads once they went live with HSA. They are 'Google Guaranteed' and consistently show in the HSA 3 tile ad spot atop the SERPs. I have done hundreds of searches and I have yet to see any of their legacy ads show at the same time as their HSA ads. When I do see a legacy ad, its when 1) nobody's HSA ads show, or 2) they simply don't show in the 3 tile HSA ads in the SERPs. Thus, my anecdotal evidence shows that they cannot get both the HSA and legacy Adwords ads to appear in the SERPs at the same time. 

 

Additionally, their cpc has gone through the roof trying to fight for the top 2 ad positions that show just below the HSA ads. 

 

I have received conflicting feedback from various Google reps. Some state it is "possible" they both can show and others state they cannot. 

 

Now that Google has expanded much of this nationwide, have you experience this same thing with any of your accounts?

Google Home Service Ads - How Will It Change Adwords?

Visitor ✭ ✭ ✭
# 9
Visitor ✭ ✭ ✭

@Nick B

 

We're currently onboarding a few HVAC clients into Local Ads. None are live yet.

These clients are out of their main season though, so traffic is limited at the moment to make a real comparison of legacy ads before and after. However we did see some big volume days during the cold snap that lead me to believe legacy ads were alive and well, even when appearing alongside Local Ads. CPC was no higher than normal. However competition is low right now (out of season). 

Are you clients seeing increased call volumes since adding (or more like moving) to Local Ads? 

Google Home Service Ads - How Will It Change Adwords?

Badged Google Partner
# 10
Badged Google Partner

@Adam M

Hi Adam,

I see this post was from a few months ago. However, Google Local Service Ads are just now coming to some of our areas we service. I have been working with an onboarding rep from Google for some of our clients. No one is live yet, but we have filled out the form for a few. My question was and still is, "Can agencies be involved / manage this process at all?" Our onboarding rep is new and literally did not have an answer for me. I am so confused. My gut feeling when they launched it was no, but then it seems like it's possible as the Google rep has been working with us, but even though I have given them my email to all of the accounts that we have filled the form out for, when I click the dashboard, it says,"This user isn't connected to any Google Local Service Ads accounts." 

I am also wondering how things have been going on the performance side of things since you last posted this thread? 

Thanks in advance!!