New Research: 35% of Competitive Local Keywords Have Local Pack Ads

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Over the past year, you may have spotted a new kind of Google ad on a local search. It looks something like this one (on a search for “oil change” from my Pixel phone in the Chicago suburbs):

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These ads seem to appear primarily on mobile results, with some limited testing on desktop results. We’ve heard rumors about local pack ads as far back as 2016, but very few details. How prevalent are these ads, and how seriously should you be taking them?

11,000 SERPs: Quick summary

For this study, we decided to look at 110 keywords (in 11 categories) across 100 major US cities. We purposely focused on competitive keywords in large cities, assuming, based on our observations as searchers, that the prevalence rate for these ads was still pretty low. The 11 categories were as follows:

  • Apparel
  • Automotive
  • Consumer Goods
  • Finance
  • Fitness
  • Hospitality
  • Insurance
  • Legal
  • Medical
  • Services (Home)
  • Services (Other)

We purposely selected terms that were likely to have local pack results and looked for the presence of local packs and local pack ads. We collected these searches as a mobile user with a Samsung Galaxy 7 (a middle-ground choice between iOS and a “pure” Google phone).

Why 11 categories? Confession time – it was originally 10, and then I had the good sense to ask Darren Shaw about the list and realized I had completely left out insurance keywords. Thanks, Darren.

Finding #1: I was very wrong

I’ll be honest – I expected, from casual observations and the lack of chatter in the search community, that we’d see fewer than 5% of local packs with ads, and maybe even numbers in the 1% range.

About Audience Team

Curated digital marketing trends, news and how to's from our team of audience architects for you.

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