In March 2015, Amazon announced the launch of Home Services in the United States, a new section that allows users to hire 900 local service providers like plumbers, music teachers, painters,…
Amazon checked the background of all the service providers who asked to be listed on the website and only 3% have been accepted.
In July 2015, the company expanded Home Services to 15 more cities in the US and reached about 15 million unique service offerings. This seems to be a new lucrative business for Amazon, as they reportedly take between 10 and 20 percent fees depending on the nature of the service.
This market represents an estimated $250 billion potential in the US in 2015 according to Reuters, so Amazon is not the only one to be on the spot.
Google is currently testing a new type of ad created for home services. The test was only launched in the San Francisco Bay Area and only focuses on locksmiths and plumbers right now.
Here is what an ad looks like:
The ads are structured the following way: 3 professionals appear, you can see their picture on the left hand side, the name of their company, their ratings, their location their phone number and you can access their full profile by clicking on “view profile”.
Just like on Amazon Home Services, the professionals had to pass a background check, be insured and licensed so as to be referred. Customers can rate the professionals but Google also collect reviews from mystery shoppers in order to increase people’s trust and quality of services
Here is what a full profile looks like:
So, how does it work?
You can send a request to up to three professionals at once. Google will send them an alert to put them in contact with you. When the job at your house is done, Google sends you an email that allows you to rate and write a review about the provider. Google did not give any details about how advertisers will have to manage the ads, but more information is to be expected within the next few weeks.
It is clear that this new Google feature competes with Amazon Home Service. Next step for Google is to expand these ads to all of the United States, and both companies be competing on the European Home Service Market soon. The entry of these two giants on the market is going to change the way service providers advertise.
For more information about Google Home Service Ads, feel free to contact us.