Local PPC: A Comprehensive Guide

What is Local PPC advertising?

Local PPC (Pay Per Click) advertising is a targeted digital marketing strategy that allows businesses to reach potential customers within specific geographical areas. This tactic uses location targeting to help you increase lead generation, gain new customers and outperform your competition on the search engine results page (SERP’s) with local advertising campaigns.

This approach is particularly valuable for small to medium-sized businesses that depend on a local customer base, such as self storage, physiotherapists & RMT’s, towing companies, entertainment venues and many more.

Using platforms like Google Ads, Bing Ads, or social media networks, local PPC campaigns will help businesses maximize their advertising spend by focusing on audiences most likely to convert.

How does Local PPC work? 

Local PPC campaigns use geo-targeting, which allows advertisers to only show ads to users within a defined location, such as cities, neighborhoods, or a radius around your business’ specific address.

Local PPC also uses additional targeting parameters like location based keywords and location extensions to narrow down the audience to people in a particular geographic area.

Here is how it works:

1. Keyword Targeting:
   You create a list of keywords that are relevant to their business and location, for example; “Vancouver physiotherapist” or “towing company near me”
2. Location Targeting
   Ads are displayed only to users searching from your target location. You will select this location when you create your campaign. For example, a 10 mile radius around your business location.
   
   *Important note: when you select your location, it is automatically set to “People in, or who’ve shown interest in your locations”. We highly recommend changing this to “Presence” People in or regularly in your included locations”.
   
   Why? Let’s say I used to live in Michigan, but I have since moved to Vancouver. I have shown interest in, and probably will continue to show interest in Michigan. So now your ads will continue to get served to me in Vancouver. It is very unlikely that I will sign up for your services in Michigan, when I am now in Vancouver. So you could potentially waste hundreds of advertising dollars on low intent clicks by advertising to “People who’ve shown interest in your area”

3. Custom Ad Copy
   Ads should include location-specific details to attract local users, like “Comedy Clubs downtown houston”
4. Call-To-Action
   CTA’s are used to drive immediate action, such as visiting your store (Get Directions), calling your business (Call Now) or booking a service online (Book an appointment).
5. Ad Extensions
   Ad assets such as location extensions, phone number, and map directions will make ads more actionable for local users and lead to more conversions.

 

Benefits of Local PPC Advertising

1. Hyper-Targeted Reach
   Your ads will only show for users in your service area, this increases the potential for conversions. If you are a physiotherapist in Downtown Vancouver and you set your targeted radius to Vancouver, you could pay for clicks from people that are miles away, and will almost never travel that distance when there are clinics far closer to them.

2. Cost effective
   With PPC, you pay for every click regardless of if the traffic converts. With your hyper-targeted reach, you won’t waste money on clicks that are too far from you, and won’t convert. Now you will have less budget to bid on a potential click much closer to your clinic. So your budget will be used far more efficiently on high intent, local traffic.
3. Increased Visibility in Local Searches
   Local PPC ads can appear at the top of local search results, which will significantly increase your business’ visibility and make it easier for local customers to find your business. This prime placement ensures that your ads will be seen by users who are actively searching for relevant products and services in your local area. This can lead to a higher click-through rate, as users are more likely to click the top result.
   
   This increased visibility can also drive more traffic to your physical location as local customers are highly likely to visit a business that is easily found online. The enhanced exposure brings immediate engagement but also builds brand recognition and trust in your local community.

4. Immediate Impact
   Unlike organic SEO, which can take months to show results, local PPC ads give you the ability to generate traffic, and potential leads, almost instantly after your campaigns go live.
5. Quick & Measurable Results
   As mentioned above, PPC campaigns can drive traffic almost immediately after they go live. Businesses can quickly measure the effectiveness of their ads within the dashboard of the service you are using (Google Ads, Bing ads, Meta Ads). You’ll be able to look at metrics like CTR, conversion rates and cost per click (CPC), which allows you to make instant adjustments to optimize the campaigns for maximum ROI.
6. Flexibility & Control
   Unlike other forms of advertising, local PPC allows you to adapt and refine your strategy in real time based on performance, market conditions or business needs. You will be able to manage various aspects of your advertising efforts including ad scheduling, budget adjustments and targeting options. This allows you to allocate your advertising spend exactly where it is needed most. Ad scheduling gives you the option of displaying ads during peak times when your target audience is most active which will maximize engagement.
   
   Local PPC campaigns targeting options are highly customizable, giving businesses the opportunity to reach specific demographics, locations and even behaviours. This level of control ensures that your ads will be seen by the right audience at the right time, enhancing the effectiveness of the campaign.

Local PPC Advertising Platforms

1. Google Ads
   This is the most popular PPC platform for all advertisers. Google ads offers extensive reach across Google’s networks including Search, Display and Youtube. It is ideal for businesses looking to connect with potential customers in their local areas who are actively searching for their products and services.
   
   Important Features for Local PPC:

• Location Targeting: Google Ads allows advertisers to target specific areas with their ads for best results. Ensuring budget is used efficiently.
• Google Business Profile Integrations: Google ads can be linked to your GMB page, so that customers can see your location, phone number and map directions. Local businesses can take advantage of the highly effective map pack section.
• Ad Extensions: Call & location extensions can improve local performance.

2. Microsoft Advertising (Bing Ads)
   Using Microsoft advertising will allow you to reach customers who choose Bing, Yahoo and AOL search as their default search engine. While the audience is smaller than Google Ads, it is less saturated so there is lower competition and as a result the CPC is lower.
   
   Features for Local PPC
   Location Targeting: Target your country, city, or a radius around your business location.
   Demographics: According to User Testing , users aged between 45 and 64 were most likely to be using Bing, with usage being most common among the 55-64 age group.

3. Meta Ads (Facebook & Instagram)
   Meta ads are powerful PPC tools for local businesses looking to generate traffic, leads and awareness. Unlike search-based ads like Google and Bing ads, Meta advertising focuses on “interruptive” or “push” advertising. This means you target users before they search for a service or product based on their behaviors, interests and location.
   
   Features for Local PPC
   Highly targeted advertising: You can reach users in a specific radius whose interests and behaviors make them an ideal target for your service.
   Cost Effective: CPC is often much lower than Google Ads.
   Visual & Engaging: Meta ads are ideal for service-based businesses where strong imagery plays a key role (eg. Home services, real estate etc.)

There are many more PPC platforms that you can use such as Yelp, LinkedIn, X (Twitter), and TikTok.

Cost of Local PPC: What to expect & how to maximize budget

PPC is Pay Per Click, meaning you will be charged every time someone clicks on your ad.

Cost per click will vary depending on your industry, geography, competition, advertising platform and keyword intent, among many other factors. The CPC will also vary quite regularly throughout the course of the campaign. It can be affected by new competition, competition exiting the advertising space, seasonality of the services being advertised, and your keyword strategy which may change over time. We will discuss this in more depth below.

Key Factors that Affect Local PPC Costs

1. Industry competition
   
   Certain industries like HVAC, Plumbers, law firms etc can be quite competitive as there are so many businesses bidding on the same clicks. When there are more bidders for the same amount of search volume, cost per click will rise. This is a simple supply & demand logic. If supply is high, but demand is low, the businesses will need to bid more to win the traffic in Google’s auction. If supply is low, and demand is high then clicks will be cheaper.
   
   For example, “Plumber Near Me” can cost $25+ per click, while “bakery near me” may cost under $2 per click.

2. Keyword Strategy & Search Intent
   Your keyword strategy is going to play a big part in your cost per click. If you want to target really general terms, these are usually much cheaper, but the intent is lower so conversion rates will probably be lower. If you target high intent terms that indicate the searcher is ready to convert, then cost per click is going to be higher, because they are the terms with the highest conversion rates.
   
   For example, in Vancouver if you had “plumber cost per hour” as a keyword and “Plumber near me” they will have significantly different CPC’s. Below you can see that “plumber cost per hour ranges from $2-$9, while “plumber near me” ranges from $15-$60.
   
   This is because someone searching for “plumber near me” is so much further down the funnel of actually hiring a plumber, compared to someone researching the average fees.

3. Ad Quality
   On Google Ads, your quality score is a combination of several factors outlined below. Typically, the higher your quality score, the less you will pay for clicks. Some factors that affect the quality score are ad copy & landing page relevance, ad strength (headlines & descriptions) and many other factors.

4. Desired Traffic
   The amount of traffic you want to drive to your website is something to consider when setting your budget. The more traffic you buy, will give you more of a chance of conversions.
   
   For example:
   • Budget: $500/month
     Avg CPC: $12
     Clicks per month: 42
     Est. Conversion rate: 5-10%
     Potential Conversions: 2-4
   • Budget $1,200/month
     Avg CPC: $12
     Clicks Per Month: 100
     Est Conversion Rate: 5-10%
     Potential Conversions: 5-10

The more traffic you provide for Google to build an audience from, the higher your conversion rates (in theory) should be. In example A above, it will take 2.5 months to build a decent sized data pool for Google’s algorithm to build from. In example B, you will have the same size data pool in 1 month.

If you are only getting 40 visitors a month, it will be really hard to spot trends and gain insights that will allow you to make performance altering decisions. So, if you can purchase at least 100 clicks a month, your ads will perform better.

How to create a local PPC strategy

A successful PPC strategy requires planning, expertise and a determined budget. To

Create a successful local PPC strategy, you should follow the basics below:

1. Determine your goal

Before you begin, you need to outline why you are creating a PPC campaign. There are many different goals you can consider:

• Website Traffic
• Generating Leads
• Increasing Sales
• Increasing Brand Awareness
• Driving phone calls
• Driving in person/store visits
• Many More

Your goal is going to help inform your overall strategy, including your keyword list, budget, landing page, conversion tracking and ad copy.

2. Create Your Keyword Strategy

 

Identifying the keywords you want to target will help you in determining your budget, and in writing your ad copy.

To start, brainstorm some keywords that are related to your products or services and then use the Google Ad’s Keyword Planner Tool to expand on your list. It will give you volume, average CPC’s of each keyword, and additional keyword ideas.

When selecting your final keyword list, there are some key factors you need to consider:

1. Intent: Consider the intent of the search term. If someone searches that keyword, are they likely to convert? Or are they looking for information.
   
   This comes back to your campaign goal. If the goal is awareness, then informational keywords are good to use, and are much cheaper. If your goal is conversions and engagement, then you want to make sure the intent is high, and the keyword suggests the person searching is close to the purchasing stage.
2. Cost: Consider the cost of each keywords average CPC and if that aligns with what you are willing to pay per click.
   
   At this stage, you should also create your list of keywords that you definitely do not want your ads to show for. For example, if you are a home window repair company, you wouldn’t want to show for “car window repair” so this should be a negative keyword. If you were to pay for that click, it would be a waste of budget.

If you choose to work with a local advertising agency, they will be able to quickly determine the best keywords to use so you won’t have to worry about this stage.

3. Determine Your Budget

Now that you have keyword volumes and average CPC’s, this will help you determine your campaign budget. If the average CPC is $7.5, and you want to get at least 100 clicks per month (recommended) then your budget should be $750 minimum.

Budget will also be determined by your customer lifetime value and your target ROI. If one customer is worth $10,000, compared to another industry where a customer is worth $100 then your budget can be considerably higher as your ROI will be far higher.

4. Create your Ads & Write Ad Copy

When creating your Ads and writing ad copy, you need to take Googles ad score into consideration. As you create your ads you will see your ad score at the top of the page moving from “Poor” to “Average” to “Good” to “Excellent”. You want to aim to get at least “Good”, but try to make it to “Excellent”.

Here are some easy tips to consider:

Google scores your ads on a range of factors. Firstly, you should make sure that you include the keywords you are targeting in your headlines and descriptions. Next, use copy from your landing page in your ad copy. Google scans your landing pages to ensure relevancy to ads.

You also want your PPC ad copy to entice searchers to click on your ad, so including offers and specials is always a good idea.

5 Tips for Successful Local PPC Ads

1. Optimize your ad copy for local relevance. Highlight the unique selling points of your business while incorporating location-specific information, such as the city or neighborhood, to add a personalized touch.
2. Leverage Location Extensions: Link your Google My Business page to your Google Ads account so that your ads will show in the local map pack.
3. Implement Call & Conversion Tracking: This is vital to measure the success of your ads. If your account is not receiving conversion data, you will be blindly guessing what channel your leads have come from.
4. Optimize Your Landing Pages: Your landing page should be relevant to the ad and provide users with the information they’re seeking. A clear call-to-action (CTA) will encourage users to make a purchase, fill out a form, or visit your store in person.
   
   If you are running ads in multiple locations, consider making location specific landing pages and campaigns so it is more relevant.
5. Continuously Test & Refine: PPC advertising is an ongoing process of refinement. Regularly test different ad variations, keywords, and targeting settings to determine what delivers the best results for your business. Leverage A/B testing to compare performance and fine-tune your local PPC strategy based on data-driven insights.

The Importance Of PPC Management

PPC campaigns are very complex, and they are ever changing. Google is consistently improving their tools and services. This is something you need to be aware of, and unfortunately it takes time, which you may not have when running a local business.

As we’ve highlighted, PPC campaigns are essential for businesses with physical locations or service areas, helping them drive foot traffic, enhance online visibility within their communities, and achieve a stronger return on investment (ROI).

By targeting specific geographic regions, local PPC management ensures businesses connect with their ideal audience, minimizing wasted ad spend on irrelevant clicks and increasing the likelihood of converting users into paying customers.

Additionally, it enhances the relevance of search ads for local users, improving engagement rates and directing more potential customers to storefronts or service locations.

By hiring an agency to run your PPC campaigns, you can continue to run all other aspects of your business with peace of mind that your ad spend is not being wasted on irrelevant traffic.

Conclusion: The Power of Local PPC for Business Growth

Local PPC is a powerful tool for businesses looking to attract high-intent customers, increase local visibility, and maximize ROI. By leveraging location-specific targeting, optimized ad copy, and continuous campaign refinement, businesses can ensure they reach the right audience at the right time—without wasting ad spend on unqualified clicks.

Effective local PPC management goes beyond just running ads; it requires strategic bid adjustments, performance tracking, and ongoing optimizations to stay ahead of competitors in the local market. Whether you’re a brick-and-mortar store, a service provider, or an emerging business, a well-managed local PPC campaign can drive more leads, more foot traffic, and ultimately, more revenue.

By implementing the strategies outlined in this guide, you’ll be well-equipped to create a highly targeted, cost-effective PPC campaign that helps your business thrive in your local community.

Ready to take your local PPC strategy to the next level? Book a call with us today and watch your online presence grow.