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A recent update from Digital Phablet reveals that Google has altered its pricing structure for message leads within Google Local Service Ads. Previously, businesses paid 50% of the cost of a phone lead for message inquiries. Now, Google states that message leads are “typically priced lower than the corresponding phone lead,” though there are cases where this may not hold true.
This change was noticed by Anthony Higman, who shared his observations on professional networking platforms. The official help documentation now notes that message leads usually cost less than phone leads, but this is not guaranteed. Previously, the documentation explicitly stated that message leads were priced at 50% of the phone lead cost.
Higman expressed frustration with the new pricing model, referring to it as a “black box” approach that complicates budget management. He pointed out that, unlike before, where there was a straightforward percentage, the current pricing seems less transparent. He questions how Google Ads can still be considered an auction when factors such as “customer engagement with LSA” influence pricing, implying that the system no longer operates purely on an auction basis.
He also suggested that this change appears to be a strategy to obscure the actual cost of message leads, especially as Google promotes the sharing of leads across multiple businesses. The lack of clear pricing details makes it difficult for advertisers to accurately track and manage their expenses. Higman warns that, given these constraints and the current environment, turning off message lead campaigns might be prudent for smaller budgets.
Overall, this update is seen as unfavorable by many advertisers who rely on transparent costing for effective campaign management.
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