LSA Bidding Strategy
What AdGradr checks
Section titled “What AdGradr checks”AdGradr looks at the bidding strategy on each active LSA campaign. LSA only supports two strategies: Maximize Conversions and Manual CPA.
- Manual CPA passes the check.
- Maximize Conversions receives a moderate flag because it lets Google set your cost per lead with no cap.
- Anything else is flagged as a serious configuration issue, since LSA is not supposed to support other strategies. If we see something else, it usually means the campaign was set up wrong or imported from a non-LSA template.
This check only runs when your account has active LSA campaigns.
Why this matters
Section titled “Why this matters”Maximize Conversions on LSA lets Google set your cost per lead with no cap. In competitive markets, this routinely produces CPLs of $100 to $300+ per lead. Manual CPA bidding gives you direct control over what you are willing to pay per lead, which is critical for maintaining profitability in any LSA category.
The moderate flag for Maximize Conversions reflects that it can work in low-competition markets, but it is rarely the optimal choice. LSA leads vary widely in quality, so controlling your max bid is the primary lever you have.
What good looks like
Section titled “What good looks like”Manual CPA bidding with a bid set based on your target cost per qualified lead. If your average closed deal is worth $1,000 and you close one in five qualified leads, $200 per qualified lead might be your ceiling. Set Manual CPA accordingly and tune from there.
Common mistakes
Section titled “Common mistakes”- Defaulting to Maximize Conversions. Google pre-selects this during LSA setup. Most advertisers never change it, and CPLs drift upward over time as Google bids more aggressively.
- Setting Manual CPA bids too low. A $10 Manual CPA bid in a competitive market means you never win the auction. Check your market’s typical CPL range and bid competitively.
- Treating LSA bidding like Search bidding. LSA pays per lead, not per click. Your Manual CPA bid is the cost per lead, not per click. The math is completely different.
How to fix it
Section titled “How to fix it”- Open the LSA campaign in Google Ads.
- Switch the bidding strategy from Maximize Conversions to Manual CPA.
- Start with a bid roughly equal to your current average CPL (or the market median if you have no history). Adjust based on lead quality and volume over the next 30 days.
- If you see a non-standard bidding strategy, verify the campaign type is actually Local Services. Standard search campaigns targeting local-services keywords look similar at a glance but are configured very differently.
When to ignore this check
Section titled “When to ignore this check”If you operate in a very small market with limited competition and your CPLs on Maximize Conversions are already low and stable, switching may not be worth the effort. Track your actual cost per lead for 30 days before deciding.
Want someone to handle this? The Click Makers team manages Google Ads accounts for companies spending $10K+/month. Get in touch to see if we are a fit.