Google is currently testing a new type of ad for local businesses in the West Coast markets of San Francisco and San Diego. Unlike the auction bidding of Adwords, these Local Listing ads are sold at a flat monthly rate. The rate, which is determined by the niche and market area, is based on prevailing bids for those terms.

Google Local Listing Ads - Example

There are a lot of ins and outs that we will all have to learn and get used to, but here are the points I find most interesting:

  • You can’t use these ads unless you have a verified Local Business Listing. These ads are created in the Local Business Center and not in AdWords.
  • They’re really not ads, but factual listings with name, URL and phone number.
  • The phone numbers are free call tracking numbers supplied by Google. When you answer your phone, you’ll be told when the call is from Google.
  • Local ads are currently displayed in a group of 4 above the Google Local 7 Pack when it appears in the Universal results. If more than 4 businesses purchase advertising in a location and category, the ads will be rotated.
  • You can only have one ad for each listing. You can choose to have that ad appear in multiple categories, but the price will increase if you do.
  • Google suggests you point your ad at your Local Business Listing or Place Page. They state that all the information a prospect needs (and more) is available on that page, so why send them to your website?  Another reason to consider this tactic is that Place Pages are already optimized for Mobile Search, so it’s better to send searchers to that information rather than to a website that may not display well on web enabled phones.
  • As far as I can tell, you can still run your regular AdWords campaigns along with the new ads.

I suggest getting your listing in compliance with Google’s new Business Listing Quality Guidelines before signing up for an ad, just to make certain there aren’t any glitches.
Now, for the best part. Everyone with a Local listing can sign up for a free 30 day trial when the service comes to their area. If you’re in San Diego or San Francisco, give it a try now!