How to Set Up Your First Google Ads Campaign for Local Marketing

Local marketing is one of the most effective ways to attract nearby customers and grow your business. Whether you own a coffee shop, a law office, or a fitness studio, targeting your audience in a specific geographic area can yield high returns. Google Ads, formerly known as Google AdWords, provides a powerful platform to reach potential customers exactly when they're searching for your services. This guide walks you through setting up your first Google Ads campaign tailored for local marketing.

1. Set Clear Goals

Before diving into the Google Ads dashboard, define what you want to achieve with your campaign. Are you aiming to:

  • Drive more foot traffic to your store?

  • Increase phone inquiries or appointments?

  • Boost visits to a location-specific landing page?

Having clear, measurable goals will help you structure your campaign, choose the right ad format, and track success effectively.

2. Create a Google Ads Account

If you don’t have one already, go to ads.google.com and sign up. You’ll need a Google account to get started. Google offers a "Smart Mode" for beginners, but for more control and better local targeting, switch to "Expert Mode" once your account is set up.

3. Choose the Right Campaign Type

For local marketing, select the “Search” campaign type. This allows your ads to appear in Google search results when people are actively looking for your services. You can also consider the “Local” campaign type (under “Performance Max”), which promotes your business across Maps, Search, YouTube, and Display to drive physical visits.

4. Define Your Campaign Settings

a. Campaign Name

Give your campaign a descriptive name like “Local Coffee Shop - Downtown Campaign” for easy tracking.

b. Networks

For local campaigns, uncheck the “Display Network” unless you have a reason to use it. This ensures your budget is spent only on search intent-driven traffic.

c. Locations

Under Locations, select “Enter another location” and specify your local area by city, ZIP code, or radius targeting. For example, if your business operates within a 10-mile radius, you can define that custom area.

d. Languages

Choose the language your customers speak—typically English, unless your market includes other primary languages.

5. Set Your Budget and Bidding Strategy

a. Budget

Start small—anywhere from $10–$50 per day depending on your industry. You can increase it as you see results.

b. Bidding

Choose a bidding strategy aligned with your goal. For first-time users, Maximize Clicks is a good starting point. If your goal is phone calls or form submissions, switch to Maximize Conversions or Target CPA (Cost-Per-Acquisition) once you’ve gathered enough data.

6. Create Ad Groups with Relevant Keywords

Ad groups organize your campaign by theme. For a local dentist, for instance, you might create separate ad groups for:

  • Teeth cleaning

  • Emergency dental care

  • Invisalign

Each ad group should contain relevant keywords that people would search when looking for that service. Use the Google Keyword Planner to find terms with sufficient search volume. Be sure to include local intent, like “dentist near me” or “teeth whitening Chicago.”

7. Write Compelling Ads

Each ad should contain:

  • A headline that includes your main keyword and local reference (e.g., “Top-Rated Dentist in Chicago”)

  • A description highlighting your offer or unique selling point (e.g., “Book Today & Get a Free Consultation!”)

  • A display URL that’s clean and relevant

  • A call-to-action like “Call Now,” “Visit Us,” or “Book Online”

You can create multiple variations and let Google rotate them to find which performs best.

8. Use Ad Extensions

Ad extensions enhance your ads with more information, which can increase click-through rates. For local businesses, focus on:

  • Location extensions: Show your address and map.

  • Call extensions: Let users call you directly from the ad.

  • Sitelink extensions: Highlight specific pages like "Services," "Contact," or "Book Now."

  • Promotion extensions: Display special offers or discounts.

9. Track Conversions

Set up conversion tracking so you know what’s working. You can track:

  • Phone calls

  • Form submissions

  • Visits to a thank-you page

  • Clicks on your "Get Directions" button

This data is crucial for optimizing your campaign and measuring ROI.

10. Monitor and Optimize

Once your ads are running, check performance regularly. Look at metrics like:

  • Click-through rate (CTR)

  • Cost per click (CPC)

  • Conversion rate

  • Cost per conversion

Pause underperforming keywords or ads, and reallocate your budget toward those driving results. Over time, refine your keywords, ad copy, and bidding strategy for better performance.

Conclusion

Setting up your first Google Ads campaign for local marketing may seem intimidating, but breaking it down into clear, manageable steps makes the process much easier. With the right targeting, compelling messaging, and consistent optimization, you can connect with nearby customers at the exact moment they need you. Start small, test different approaches, and let data guide your decisions. In no time, you’ll have a local campaign that drives real business results.

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