trage in Google’s Local Services Ads – What you should know //

There are many great articles that expose the dark side of Local Services Ads spamming and fake reviews. Search Engine Roundtable has one about fake reviews , while Search Engine Land features Len Raleigh’s discussion on location spam and reviews, as well as names, ads, and ads.

A client recently told me that there is more to the dark hole than being misleading about reviews and locations.

This will allow those working in local SEO to recall the personal injury as well as the garage doors spaces.

We have seen review spam and location spam grow exponentially over the past two years.

Large networks of lead generators were also involved. They would dump an area with fake profiles and boost them with reviews, then turn around to sell those leads on to merchants – often the same merchants that they had buried.

A number of people working in local SEO helped to reduce the spam volume. Google finally took action.

Although spammers are still present in some form today, it seems that they have moved on to another area that Google does not know how to police or is unwilling to.

I was told by Dennis Yu, a fellow digital marketer.

Spam and fake reviews in Google’s Local Service Ads

Local Service Ads (LSAs) allow consumers to find companies that Google feels they trust because they have passed multiple checks on personnel backgrounds, licenses and insurance, among others.

Trust is the big problem. It can be easily manufactured and cheated.

To understand the problems, we need to be able to explain how LSA operates.

  • Google Screened or Google Guaranteed Entities background checks are performed. Here’s Google’s guide to help you qualify.
  • Google displays providers only from verified providers. Three providers are returned as the top query response (in a row)
  • To schedule an appointment, the customer calls the provider. Calls are routed through Google. There are also options for booking and sending messages.
  • The lead is usually $25 per garage door space.
  • An email is sent with a link or request for a review. Google doesn’t verify reviews. They do however state that they will verify reviews if they can link the review to a job from LSAs.

LSA was meant to be a powerful tool for combating spam but it now seems poised for trouble.

Illustration of the issue

Both the Pasadena-based companies in the screenshot are owned by the same person, as shown in the following table.

What is the problem? This would be against LSA policies.

My source looked deeper and found that many of the same people owned other companies in the region.

The table shows that actors appearing in local service ads may own multiple entities. A third party examined the licensing owners of California garage doors companies to uncover this. These companies were located in LSA at time of data collection.

Below is the same listing of companies and their LSAs. (At the time this article was written, three of these companies were removed from LSA.


*An affiliate entity is one that has overlapping ownership as determined by the California Contractors State License Board.

According to research by a third party the companies mentioned above own multiple entities, some of which are also LSA.

It is common to create entities solely for the purpose of getting into LSA. By looking at the fake entitlements, we have been able to remove spam LSA entries. (Learn more about why this is important.)

Now we have multiple entities. Now what? What about fake reviews?

Raleigh’s article makes it clear that LSA reviews are easy to obtain and inexpensive.

Sidenote A “verified LSA review” is not actually verified. After a job has been completed, a unique link is generated. This link can be sent to LSA customers, or you can simply hand out the LSA review link to anyone. Even people who have left a Google Business Profile review (GBP). It is not trustworthy and it can easily be manipulated.

How can these entities get fake, non-bought reviews? It’s quite simple.

Get the daily newsletter search marketers rely on.

” />
” />
” />
input type=”inlineEmail control rounded-0, w-100″ placeholder=”Enter business email here.” required=”” type=”email”/>

Processing…Please wait.

How Local Services Ads Arbitrage Works

LSA Arbitrage is something like this:

Google does not have any knowledge of or control over subcontracting between licensees and the outside entities that will ultimately manage the jobs. This could be difficult to detect, but there are mechanisms that could help.

Google claims they will investigate any subcontracting allegations on LSA and enforce the law as appropriate.

It is through a combination strategy that bad actors companies can succeed.

What has Google to say?

I inquired at LSA about the matter and was given the following statement by a spokesperson for Google:

“We have strict policies for Local Services Ads in place to protect advertisers and people from industry-wide fraud and abuse. We are committed in fighting fake content and reviews in local listings and ads. We have invested significantly in new enforcement system that protects both providers and users from abuse.

In another meeting, I was told that this is being done up to the highest levels of LSA and Google Legal. So there could be some changes in these policies.

Google previously reported to provide context. To help people locate reliable local information in 2021 they:

Is this LSA Arbitrage a warning sign

The garage door spam and personal injury started in a particular cycle. Spam would appear in the major states/metros like California, New York and Florida.

They would remain in these metros for approximately six months before spreading across the U.S. According to reports, these are the metros where they are now.

We can take actions

Google may not be willing to take this seriously, but they have to go through many legal hurdles. Google could be disincentivised to act because it is difficult to find scaleable proof. This is a money-making platform, let’s face it.

To make money, good merchants will spend whatever they can to get leads if the bad actors have been eliminated. Some customers have a $100,000+ weekly budget.

These are just a few of the many actions search marketers can take.

What can Google do for you?

This should have been obvious to us.

The Local Services Ads platform remains young.

Marketers ought to have seen it coming. Google should have seen this coming, too, given their extensive experience with spamming and arbitrage in Google Ads.

Google can do better. They should take this as an opportunity to do the right thing no matter what it takes.

While it will be costly in infrastructure and revenue loss, the upside is that real merchants can spend real money on leads. The platform will eventually gain more trust from consumers. This is a win-win situation in my book.

We are grateful to all those who have supported the efforts to increase awareness.

The post Arbitrage In Google’s Local Services Ads – What You Need to Know appeared first at Search Engine land.

Leave a Reply

Your email address will not be published. Required fields are marked *