Google is investigating a Local Services Ads bug that causes businesses to appear in search results for their competitors’ names.
The issue comes just weeks after the platform began testing branded local service ads (LSAs) called Direct Business Search. This new ad type allows brands to appear in search results when someone directly searches for a brand or business.
Google has clarified that through direct business search, only your business should appear in search results when your brand is requested, and you will only be charged for leads from new customers.
Why we care When users search for a specific brand on Google, their intent is to find that brand, not a general service or product. If your competitors appear in search results for queries related to your business name, Google is not only failing to meet the user’s intent, but also running the risk of directing your customers to competitors.
first discovered The problem was first pointed out by Joy Hawkins, SEO consultant and founder of Sterling Sky Incactivated X:
“I wonder how many of these companies know they’re bidding on a competitor’s name. I don’t like this launch with local service ads. I don’t see how it’s better for anyone.”
Hawkins shared a screenshot of the Google SERP for the query “garage door service a1” in January 2024:
Highlighting the impact of the LSA bug, he then shared a screenshot for the same search query in February 2024:
Deactivation Although brands are automatically signed up for Direct Business Search ads by default, you can opt out of this by manually adjusting your campaign settings.
What Google says. Google Ads Liaison Officer Ginny Marvin responded to Hawkins’ post at Xwriting:
“This is an error (and was thought to be a non-brand query) – it is being fixed.”
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deep dive Read our article on the Google Local Brand Services Ads pilot to learn more.
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