Location-Based Services Market Trends

Location-Based Services Market Trends

One trend in the Local Services Ads market is the increasing emphasis on verification and trust. Google is prioritizing verified business profiles to reduce fraudulent activity, ensuring that only legitimate businesses can run ads. This shift is pushing small businesses to focus more on maintaining accurate, up-to-date information across their Google profiles. As a result, businesses that comply with Google's verification process are likely to gain more visibility and trust from potential customers. This trend is expected to improve the overall quality and reliability of local service ads.
 

For instance, in October 2023, Google announce that it will require businesses to have a verified Google Business Profile to run Local Services ads. This change, aimed at reducing fraud, affects small businesses in Europe, the Middle East, Africa, and select parts of the U.S. and Canada. If a business's profile information doesn't match the ad details, the ad will be paused. Verification involves claiming and confirming the business address, which can take up to seven days. The new policy may impact businesses that are unaware or haven't completed the verification process.
 

One challenge in the Local Services Ads market is the complexity of the verification process for small businesses. Many small business owners may not be aware of the need for verification or may struggle with the time-consuming steps involved, such as confirming business addresses and providing additional documentation. This can lead to disruptions in advertising, especially if businesses fail to complete the process on time. Furthermore, businesses in remote or underserved areas may face additional hurdles in the verification process, limiting their ability to participate in the program. These challenges can result in lost opportunities for businesses to attract local customers.