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Why do my local Google Ads deliver no leads?

Ten causes of disappointing local campaigns, with a solution for each cause.

By Gijs Bodenstaff · Updated:

Local Google Ads usually deliver no leads because of set-up errors, not because of too little budget. The most common causes: phone calls and direction requests are not measured, the area is too large, the ad lacks the location's address, or the click lands on a generic page. Below are the ten causes we come across most often when auditing chains, with a solution for each cause.

In brief: why local Google Ads deliver no leads

  • Local Google Ads usually deliver no leads because of errors in targeting, measurement or the landing page, not because of too little budget.
  • The most common cause: calls, direction requests and appointments are not measured.
  • Targeting too large an area wastes budget on people who will never visit.
  • Franchisees bidding on the brand name themselves drive up the cost per click.
  • A generic homepage as the destination converts worse than a location page.
  • Start with an account audit before you increase the budget.

Causes 1 to 3: measurement, area and keywords

1. You are measuring the wrong things. Many local customers call or request directions rather than filling in a form. If you only measure forms, you will think there are no leads. Measure calls, direction requests, appointments and reservations per location.

2. The area is too large. A campaign targeting the whole of the Netherlands or an entire province pays for clicks from people who will never come to the location. Target a radius that suits your sector, and exclude areas that belong to another location.

3. The keywords are too broad. Broad terms attract researchers, students and job seekers. Use keywords with local and purchase intent, plus a good list of negative keywords.

Causes 4 to 6: ad, landing page and profile

4. Location assets are missing. Without a link to the Google Business Profile, the ad shows no address or distance. Yet that is exactly what makes a local ad appealing.

5. The click lands on the homepage. Someone searching for a location in their town wants to see that location: address, opening hours, team, a call button. Send them to a location page; see store locator pages.

6. The profile does not convince. People who click on an ad often check the profile and reviews as well. A low rating or unanswered complaints cost leads, however good the ad is.

Quick checks for local Google Ads
CheckRightWrong
ConversionsCalls, directions, appointments, formsOnly forms or only clicks
AreaRadius per locationThe whole of the Netherlands
Location assetsLinked to profilesMissing
DestinationLocation pageHomepage
Location review scoreRecent and answeredLow and unanswered

Causes 7 to 10: internal competition, budget, timing and management

7. Locations compete with each other. If franchisees bid on the brand name themselves or their areas overlap, you pay more per click for the same customer.

8. The budget is fragmented. A few euros a day per location yields too little data to optimise. Bundle small locations into clusters.

9. Ads run when nobody answers the phone. Emergency campaigns that run in the evening while the phone is unstaffed waste budget. Align ad schedules with availability.

10. Nobody optimises. A campaign that has not been looked at for months loses its return. Search terms, bids and negative keywords need weekly attention.

Causes and solutions summarised
CauseSolution
Wrong measurementMeasure calls, directions and appointments per location
Area too largeRadius per location, exclude overlap
Broad keywordsLocal intent plus negative keywords
No location assetsLink to Google Business Profiles
Homepage as destinationLocation page
Internal competitionBrand name managed centrally, areas clearly defined
Fragmented budgetClusters of locations
No managementWeekly optimisation

How do you tackle it: an audit before budget

Only increase the budget once the set-up is right. Start with an account audit: structure, measurement, areas, search terms and landing pages. In our experience, fixing these points often delivers more than a higher budget. After that, you optimise weekly and evaluate per location every quarter. If you would like to hand this over, read outsourcing Google Ads for franchises; the channel itself is covered in local search advertising.

How can you tell whether local ads are working?

Look at the cost per customer action per location, not the cost per click. A location with expensive clicks can still deliver cheap customers if the conversion rate is high. Where possible, compare the trend with the locations' revenue figures. How to calculate the return per location is explained in measuring ROI per franchise location.

Do the causes differ by sector?

The ten causes occur everywhere, but the emphasis differs. In healthcare, we often see ads that do not comply with the rules for health services or that fail to mention specialisms. In retail, the link with local stock and opening hours is usually missing. In service businesses, phone calls are the most important conversion, yet they are not measured. And in hospitality, campaigns often run outside the moments when guests make their decision. We work out the approach in more detail per sector; see, for example, the sector pages in the overview of all sectors.

Who is behind this approach to local Google Ads that deliver no leads?

Behind this page is a permanent team, with no rotating account managers. Founder Gijs Bodenstaff (local SEO specialist since 2010, Google Product Expert, author of three books on the local visibility of chains) maintains contact with head office. Angela analyses visibility and leads per location, Elisabeth manages local ads, Peter builds local authority and ten regular freelancers look after profiles and reviews. Every figure on this page has a source; where we share something from our own experience, we say so.

You can read more about the people behind this agency; the author's background is on the page about Gijs Bodenstaff.

Frequently asked questions: why do my local Google Ads deliver no leads?

How quickly will you see an improvement after an audit?
Fixing measurement, area and negative keywords often produces visibly better figures within a few weeks. After that, the return keeps growing through weekly optimisation.
Why am I getting clicks but no leads?
Often because of broad keywords, too large an area or a landing page that does not match. Also check whether you measure calls and direction requests; there may be leads you are not seeing.
Should I spend more budget if Ads is not working?
Not at first. Fix the set-up with an audit. More budget on a poorly set-up campaign mainly increases the waste.
How large should the area around a location be?
That depends on your sector. For hospitality and retail it is often a few kilometres, for specialist services sometimes twenty kilometres or more. Measure where your customers actually come from.
Can franchisees run Google Ads themselves?
Within agreed rules, but not on the brand name and preferably within the central structure, so locations do not bid against each other.
What are location assets?
Extensions that show the address, the distance and a directions button for the nearest location. They are linked to the Google Business Profiles.
How often should a local campaign be optimised?
Search terms and bids weekly, structure and budget allocation every quarter.
Which conversions should you track in local Google Ads for a location?
Track calls, direction requests, appointments, bookings and forms, per location. Many local customers call or ask for directions instead of filling in a form. If you only measure forms or clicks, you think there are no leads while the location is in fact getting customers. This is the most common cause we find when auditing chains.
Why do franchisees bidding on the brand name themselves drive up the cost per click?
Because they then bid against each other and against head office for the same customer. Every extra bidder on the same search term raises the price per click, without bringing in extra customers. Overlapping location areas have the same effect. The fix is to manage the brand name centrally and clearly define the area for each location.
Is a small daily budget per location enough for local Google Ads?
Often not, because a few euros a day per location produces too little data to optimise. Group small locations into clusters with a shared budget instead. Then judge the cost per customer action per location rather than the cost per click. Expensive clicks can still bring cheap customers if the conversion rate on the location page is high.
Portrait of Gijs Bodenstaff

Gijs Bodenstaff
Franchise marketer, local SEO and GEO specialist, author

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