Google recently announced that starting July 2024, Local Service Ads will roll out their Automated Lead Credit process. Since launching in 2017, LSA has functioned under a manual lead dispute system. The plan is to streamline this process due to a low percentage of advertisers initiating disputes on their end. Businesses and advertisers will start to see the changes happen over the next few months. This movement reflects Google’s expanding capability to incorporate AI into their quality control methods. Google made “lead dispute” a high selling point during the original LSA rollout, taking it away from users could prove to be a costly change in some cases if not managed properly.
Local Services Ads Set of Standards for Lead Credit
Google will proactively evaluate each lead separately as they are received; against a set of standards, then refund invalid leads. What standards they will use is yet to be disclosed. Assuming Google uses the same set of standards that are already in place, one may question what gray areas will arise. Google claims they will be crediting more leads on average overall, despite discontinuing credits for “job type not serviced” and “geo not serviced” leads. How precise will location disputes be? Will Google Local Services Ads still give lead credit for missed calls? Will the duration of a lead/call affect the automated decision on whether, or not, to give credit for this lead? Advertisers involved in the Service industry could question, “what if I do not receive credit for a refrigerator brand I do not service?”. Google is highly encouraging feedback and constructive criticism while these changes take place, so that they are able to adjust and improve.
Pros and Cons of LSA Automated Lead Crediting
Pros
- Time Saving – Arguably the most popular benefit, automated lead credits could save businesses and marketers time and resources by eliminating the need to manually dispute leads.
- Equitable Ad Credits – Google will aim to ensure a fair distribution of lead credits across the board, whether advertisers were previously proactive in disputing leads or not.
- Faster Credit Process – An automated review process should speed up how long it takes to receive credit for leads. Potentially leading to faster budget adjustments.
Cons
- Lead Value – With “job type not serviced” and “geo not serviced” leads no longer available and eligible for credits, will advertisers and businesses pay for leads that are not valid for their certain services?
- Automation – Automation itself can be a scary term for advertisers and businesses. With the lack of a manual touch from advertisers, the trust in Google’s machines handling lead value could take time getting used to.
- Budgeting – Lead cost can vary per market/service, with some being more expensive than others. Missed credits could potentially wreak havoc on marketing budgets. This may force businesses to invest less in LSA until the automated process has a more proven track record of being on point when it comes to lead credit.
Results Guaranteed Digital Marketing welcomes change. Although a lack of manual touch is to be expected, a lack of effort from us is not. Now is the time to be vigilant during this period of change. Staying active and providing Google with constructive criticism and feedback is highly important during this rollout. Because of the automated process potentially having a direct impact on how businesses manage their marketing budget, regular monitoring of lead metrics and quality will be crucial. The digital world is moving quickly toward Artificial Intelligence, being able to adapt and overcome will separate success and failure.