Google Ads for Local Businesses: Complete ROI Guide

Why Google Ads for Local Businesses?

65% of customers click on ads when ready to buy. You appear instantly at the top of Google—no waiting for SEO. Pay only when someone clicks. Target precisely by location, time, device. Average ROI: ₹5-8 for every ₹1 spent on well-optimized campaigns.

Campaign Structure

Start with Search Campaigns (text ads on Google search results). Campaign settings: Location targeting (5-25km radius from your business), language (Hindi, English, regional), schedule (show ads during business hours + peak times), budget (₹300-1000/day to start), bidding (start with Maximize Clicks, switch to Target CPA once you have data).

Keyword Strategy

High-intent keywords: '[service] near me', 'best [service] in [city]', '[service] [neighborhood]', '[service] open now'. Example for restaurant: 'restaurant near me', 'best biryani in Bangalore', 'family restaurant Koramangala', 'dinner place open now'. Match types: Exact match for high-intent, Phrase match for moderate, Broad match for discovery (use carefully!). Negative keywords: Add 'job', 'career', 'free', 'DIY' to exclude irrelevant searches.

Ad Copy That Converts

Headline 1: Include main keyword + benefit ('Best Biryani in Bangalore | 4.9★ Rating'). Headline 2: Unique selling point ('Family-Owned Since 1995 | Authentic Recipes'). Headline 3: Call-to-action ('Book Your Table Now | Open Till Midnight'). Description: Benefits, social proof, offer ('Award-winning North Indian cuisine. 500+ 5-star reviews. Book now and get 10% off your first visit! Free parking available.'). Extensions: Location, call, sitelinks (menu, reservations, reviews), callouts (Free WiFi, Outdoor Seating), structured snippets.

Budget Optimization

Starting budget: ₹10,000-20,000/month (₹330-660/day). Monitor daily: impressions, clicks, CTR (aim for 3-8%), CPC (varies by industry, typically ₹8-50), conversions, conversion rate (aim for 2-5%), cost per conversion. Optimization tactics: pause low-performing keywords, increase bids on high converters, test ad variations, adjust schedule to peak hours, refine location targeting, add negative keywords weekly.

Tracking & ROI

Setup conversion tracking: phone calls, form submissions, online bookings, purchases. Calculate ROI: (Revenue from Google Ads - Google Ads Cost) / Google Ads Cost × 100. Example: Spent ₹20,000, generated ₹80,000 revenue = 300% ROI. Track Customer Lifetime Value (CLV): If average customer spends ₹5,000 over lifetime, you can spend up to ₹1,000 to acquire them profitably. Review weekly, optimize monthly, scale what works. Expected timeline: Month 1 testing, Month 2-3 optimization, Month 4+ profitability and scaling.