If you're a local business owner trying to drive more leads or direct sales, Google Ads is one of the fastest ways to reach people who are actively searching for what you offer. But launching your first campaign can be confusing without a clear roadmap.

This guide walks you through setting up a Google Ads campaign focused on local lead generation or sales, with practical steps that get results.

Step 1: Choose a Clear Campaign Goal

Start by defining what you want to achieve. For local businesses, this is usually one of the following:

• Phone calls
  
   
• Quote or booking requests
  
   
• Store visits
  
   
• Online purchases from local customers
  
   

In Google Ads, choose “Leads” or “Sales” as your campaign objective. These options will guide the platform to prioritize actions that directly impact your bottom line.

Step 2: Set Up Conversion Tracking

You need to track what matters—calls, form submissions, or purchases—so you know which ads are working.

To set up conversion tracking:

• Navigate to Tools & Settings > Conversions in Google Ads.
  
   
• Choose the action to track (e.g., phone calls, website form submissions, purchases).
  
   
• Add the Google tracking tag to your website or integrate with platforms like Google Tag Manager.
  
   

If you’re a service provider, phone call tracking is critical. You can track calls directly from the ad or from your website after someone clicks.

Step 3: Select the Right Campaign Type

For local businesses focused on direct results, start with one of these:

• Search Campaigns: Text ads that appear when someone searches for relevant keywords.
  
   
• Local Campaigns: Designed to drive foot traffic to physical locations.
  
   
• Performance Max Campaigns: Uses Google’s automation to drive leads across all its platforms.
  
   

For your first campaign, a Search Campaign gives you the most control and is ideal for targeting people actively looking for your services.

Step 4: Target the Right Location

Precise geographic targeting ensures you’re only spending money on people who can actually become customers.

In the campaign settings:

• Select your city, zip codes, or set a radius around your business.
  
   
• Use the “Presence” option to target users physically in that location, not just those interested in it.
  
   

This keeps your ad spend focused on real opportunities.

Step 5: Set a Smart Budget and Bidding Strategy

Start with a manageable daily budget—$20 to $50 is a solid starting point.

Choose a bidding strategy that aligns with your goal:

• Maximize Conversions: Ideal if you’ve set up conversion tracking.
  
   
• Maximize Clicks: Use this if you’re still collecting data.
  
   
• Switch to Target CPA later for more control over cost per lead.
  
   

Avoid automated bidding strategies like “Target Impression Share” at this stage—they’re not optimized for sales.

Step 6: Build a Focused Keyword List

Your keywords determine who sees your ads. Start with high-intent, local keywords, for example:

• “emergency electrician [city]”
  
   
• “buy mountain bike [zip code]”
  
   
• “roof repair near me”
  
   

Use phrase match and exact match to stay in control and avoid irrelevant traffic. You can use tools like Google Keyword Planner or SEMrush to find terms with good volume and buyer intent.

Step 7: Write Local-Optimized Ad Copy

Your ad needs to be clear, relevant, and include a call-to-action (CTA). It should tell the user:

1. You have what they need.
   
    
2. You’re nearby.
   
    
3. They should act now.
   
    

Example structure:

• Headline 1: "24/7 Plumbing Service | Denver, CO"
  
   
• Headline 2: "Licensed & Insured Pros"
  
   
• Description: "Same-day repairs. Call now for a free quote!"

Use ad extensions to improve performance:

• Call Extensions let users call directly.
  
   
• Location Extensions show your address and map link.
  
   
• Sitelinks let you promote specific pages like “Book Online” or “Coupons.”
  
   

Step 8: Adjust Your Ad Schedule

If you only want leads when you can respond to them, adjust your ad schedule accordingly.

• If you’re a service business and only answer calls 9–5, only run ads during those hours.
  
   
• You can also analyze when most conversions happen and optimize around those times.
  
   

Step 9: Launch and Monitor

Once your campaign goes live, monitor it closely—especially during the first 1–2 weeks.

Key metrics to watch:

• CTR (Click-Through Rate): Are people engaging with your ad?
  
   
• CPC (Cost Per Click): Are you staying within budget?
  
   
• Conversion Rate: Are clicks turning into real leads or sales?
  
   
• Search Terms Report: See exactly what people are typing before clicking—use this to refine keywords.
  
   

Step 10: Optimize for Better Results

No campaign is perfect on Day 1. Use your data to improve:

• Add negative keywords to filter out irrelevant searches.
  
   
• Pause underperforming ads and test new variations.
  
   
• Adjust location, device, or time-based bid modifiers.
  
   
• Focus budget on the best-performing keywords and ads.
  
   

After about 30 days, you’ll have enough data to shift toward Target CPA bidding and scale what’s working.

Conclusion

Launching your first Google Ads campaign doesn’t have to be complicated—especially if your goal is local lead generation or sales. With the right structure in place, you can start seeing results fast.

Start by defining a clear goal, target only your local audience, and focus your budget on keywords and ads with real buyer intent. Monitor performance, make smart adjustments, and you’ll have a reliable channel that drives measurable growth for your business.

If you’d rather not go it alone, we help local businesses build and manage Google Ads campaigns that generate qualified leads and real ROI-without wasting time or budget. Let’s talk.