Introduction

Google Ads can be incredibly effective for local businesses, but many Western Sydney business owners waste money because they’re targeting the wrong keywords. The difference between profitable ads and money down the drain often comes down to keyword selection.

This guide will walk you through choosing keywords that actually work for local businesses. Whether you’re a plumber in Parramatta, a cafe owner in Castle Hill, or a beauty salon in Blacktown, these principles apply.

Understanding How Google Ads Keywords Work

The Basics

When someone searches Google, advertisers bid on keywords related to that search. If your keyword matches what they searched for, your ad might appear. You only pay when someone clicks your ad.

The challenge: choosing keywords that attract customers ready to buy, not just browsers or people looking for something else entirely.

Match Types Explained

Google Ads offers different ways to match your keywords to searches:

Broad Match: Your ad shows for searches related to your keyword, including variations. “Plumber Sydney” might show for “how to fix a leaking tap” or “plumbing courses Sydney.”

Phrase Match: Your ad shows when the search includes your keyword phrase. “Plumber Parramatta” might show for “emergency plumber Parramatta area.”

Exact Match: Your ad shows only for that specific search (and very close variations). [plumber parramatta] shows only for “plumber parramatta” or “parramatta plumber.”

For local businesses with limited budgets, starting with phrase and exact match gives you more control over spending.

Finding the Right Keywords for Local Business

Forget industry jargon. Think about what your actual customers type into Google.

A Hills District accountant might want to target:

  • “accountant castle hill”
  • “tax accountant hills district”
  • “small business accountant parramatta”
  • “bookkeeper near me”

Notice these are simple, practical terms—the way real people search.

Add Location Modifiers

For local businesses, location-based keywords are gold. People searching “electrician blacktown” are looking for someone local. People searching just “electrician” might be anywhere.

Location modifiers to test:

  • Suburb names (Parramatta, Blacktown, Castle Hill)
  • Region names (Western Sydney, Hills District)
  • “Near me” variations
  • Postcode areas

Use Google’s Keyword Planner

Google’s free Keyword Planner tool shows:

  • How many people search for each keyword
  • Estimated cost per click
  • Competition level
  • Related keyword suggestions

Access it through your Google Ads account. Even with a small budget, this research is essential.

Analyse Competitor Keywords

Search for services like yours and note which ads appear. What keywords are they likely targeting? This isn’t about copying—it’s about understanding the landscape.

Keywords That Work for Western Sydney Businesses

High-Intent Keywords

These keywords indicate someone ready to take action:

Service + Location

  • “plumber parramatta”
  • “electrician blacktown”
  • “dentist hills district”

Problem + Solution + Location

  • “emergency plumber western sydney”
  • “blocked drain penrith”
  • “same day electrician castle hill”

Action Keywords

  • “hire electrician parramatta”
  • “book dentist blacktown”
  • “get quote plumber hills district”

Keywords to Be Careful With

Some keywords attract the wrong traffic:

“Free” Keywords “Free legal advice Sydney” attracts people not willing to pay. Unless you offer free consultations strategically, avoid these.

“DIY” Keywords “How to fix leaking tap” targets people who want to do it themselves, not hire someone.

“Jobs” Keywords “Electrician jobs Sydney” targets job seekers, not customers.

Add these as negative keywords (more on this below).

Structuring Your Keyword Strategy

Group Keywords Logically

Organise keywords into ad groups by theme:

Ad Group: Emergency Plumbing

  • emergency plumber parramatta
  • 24 hour plumber western sydney
  • after hours plumber blacktown

Ad Group: Blocked Drains

  • blocked drain parramatta
  • drain cleaning western sydney
  • blocked toilet hills district

This allows you to write specific ads for each group, improving relevance and click-through rates.

Match Keywords to Landing Pages

Each ad group should point to a relevant landing page. Someone searching “emergency plumber parramatta” should land on a page about emergency plumbing services, not your generic homepage.

Relevance between keyword, ad, and landing page affects:

  • Your Quality Score (which affects costs)
  • Conversion rates
  • Overall campaign success

The Critical Role of Negative Keywords

What Are Negative Keywords?

Negative keywords prevent your ads showing for certain searches. They’re as important as regular keywords for local businesses.

Essential Negative Keywords for Local Businesses

Job-Related

  • jobs
  • careers
  • salary
  • hiring
  • employment

DIY and Learning

  • how to
  • tutorial
  • DIY
  • course
  • training

Wrong Locations If you only serve Western Sydney, add negative keywords for areas you don’t service.

Free and Cheap Seekers (if not your market)

  • free
  • cheap
  • budget

Building Your Negative List

Review your search terms report regularly. This shows what people actually searched before clicking your ad. Add irrelevant searches as negative keywords to stop wasting money.

Budget Considerations for Local Businesses

Starting Budget

For local businesses testing Google Ads, consider starting with $20-50 per day. This gives enough data to learn while limiting risk.

Cost Per Click Expectations

Costs vary by industry and competition. Some rough guides for Western Sydney:

  • Trades (plumber, electrician): $8-20 per click
  • Professional services (accountant, lawyer): $15-40 per click
  • Retail and hospitality: $2-8 per click
  • Beauty and wellness: $3-10 per click

These are estimates—your actual costs depend on competition and quality scores.

Calculating What You Can Afford

Work backwards from your profit margins:

If your average job is worth $500 in profit, and you convert 1 in 10 enquiries to sales, each enquiry is worth $50. If 1 in 5 clicks becomes an enquiry, each click is worth $10.

You can afford to pay up to $10 per click and break even. Pay less and you profit.

Common Keyword Mistakes Local Businesses Make

Going Too Broad

Targeting “plumber” when you only serve Parramatta wastes money showing ads to people in Melbourne or Perth.

Ignoring Search Volume

Keywords need enough searches to matter. A keyword with 10 searches per month won’t generate meaningful business, no matter how relevant.

Not Using Negative Keywords

Without negative keywords, you’ll pay for clicks from job seekers, DIY enthusiasts, and people outside your area.

Set and Forget

Keywords need ongoing optimisation. What works initially might need adjustment as you gather data.

Focusing Only on Cost

The cheapest keywords aren’t always the best. A $5 click that never converts costs more than a $20 click that becomes a $2,000 customer.

Tools for Keyword Research

Free Options

Google Keyword Planner: The essential starting point for any Google Ads campaign.

Google Search Suggestions: Start typing your service and note what Google suggests—these are real searches.

Google Trends: See how search interest changes over time and compare keywords.

If you’re investing seriously in Google Ads:

SEMrush: Comprehensive keyword research and competitor analysis.

Ahrefs: Strong for understanding keyword difficulty and search intent.

SpyFu: Specifically for competitor keyword research.

Getting Started: Your First Keywords

If you’re just starting with Google Ads, here’s a simple approach:

Step 1: List your main services (3-5 services)

Step 2: Add your main service areas (2-3 suburbs or regions)

Step 3: Combine them: “service + location”

Step 4: Add variations (emergency, near me, best, cheap if relevant)

Step 5: Build initial negative keyword list

Step 6: Use phrase match to start, then test exact match for top performers

Example: Local Trades Business

A Blacktown electrician might start with:

Keywords

  • electrician blacktown (phrase match)
  • electrical services western sydney (phrase match)
  • emergency electrician blacktown (exact match)
  • 24 hour electrician parramatta (phrase match)

Negative Keywords

  • jobs
  • course
  • apprentice
  • how to
  • DIY
  • free

Budget: $30/day starting budget

Landing Pages:

  • General electrical services page
  • Emergency services page (for emergency keywords)

Measuring Success

Track these metrics weekly:

  • Click-through rate (CTR): Above 3% is good for local services
  • Cost per click (CPC): Monitor trends
  • Conversion rate: Track enquiries and calls
  • Cost per conversion: The number that matters most
  • Search terms: What people actually searched

Adjust keywords based on performance, not assumptions.

Conclusion

Effective Google Ads for local businesses comes down to choosing keywords that match how your customers actually search, adding location modifiers, and using negative keywords to avoid waste.

Start simple, measure results, and refine over time. The businesses that succeed with Google Ads are those that treat it as an ongoing process, not a one-time setup.

For Western Sydney businesses competing against larger companies, well-targeted Google Ads can level the playing field. You don’t need the biggest budget—you need the smartest keyword strategy.

Need help setting up or optimising your Google Ads campaigns? Our team works with local businesses across Western Sydney to create effective, accountable advertising. Get in touch for a free review of your current campaigns.

For executive-level thinking on digital marketing strategy and technology investment, explore Ash Ganda’s blog.

Cosmos Web Tech is the web development division of Ganda Tech Services, specialising in website design, SEO, and e-commerce for Australian businesses.