Google’s Local Services Ads feature raises cost concerns
The "Request Competitive Quotes" button in Google Local Services Ads is cause for concern due to potential hidden costs and a lack of clarity.
A “Request Competitive Quotes” button in Google Local Services Ads is causing uncertainty among advertisers about potential hidden costs.
How it works:
- Users click the “Request Competitive Quotes” button.
- They select multiple businesses for quotes.
- Users enter a message and email address.
- Google sends the request to all selected businesses simultaneously.
Why we care. This feature could significantly impact advertisers’ cost per lead, potentially inflating expenses without their knowledge. The lack of transparency around how these charges are applied makes it harder for advertisers to calculate their true ROI, potentially skewing campaign performance metrics.
What we don’t know:
- Whether Google charges each business for these multi-quote requests.
- How this feature affects overall cost per lead calculations.
What they’re saying: We were alerted to this test by Nick Smith, Senior Digital Strategist at Riester who reported that this information is not available online or in Google’s documentation.
Google has yet to comment on this test.
Why it matters: If each business is charged for these multi-quote requests, it could:
- Artificially inflate lead costs.
- Reduce the effectiveness of advertising budgets.
- Impact ROI calculations for Local Services Ads campaigns.
The bottom line: Advertisers using Google Local Services Ads need clarity on how the “Request Competitive Quotes” feature affects their costs and lead attribution.
