Last updated: November 7, 2026
Quick answer: Local Services Ads (LSAs) are Google’s pay-per-lead ads for service businesses. They appear at the very top of local search results, above regular Google Ads. You pay only when a customer contacts you through the ad by phone, message or booking, not per click. Businesses that pass Google’s screening and verification earn the Google Verified badge. Your ranking depends heavily on how responsive you are, and reviews and proximity also matter.
What are Google Local Services Ads?
Local Services Ads are a separate ad product from regular Google Ads, built for local service providers in approved categories such as plumbers, electricians, HVAC companies, roofers, cleaners, lawyers and many others. When someone searches for a service in your area, LSAs can appear above everything else, showing your business name, rating, hours and a call or message button.
How do Local Services Ads work?
- Create a profile with your business details, service area, hours and the specific services you offer.
- Pass screening and verification. Requirements vary by category and location and can include business registration, licensing, insurance and background checks.
- Set a budget, which you can change anytime.
- Receive leads. Customers call, message or book through your ad, and you’re charged per valid lead.
What happened to “Google Guaranteed” and “Google Screened”?
Google has consolidated its LSA badges into a single Google Verified badge, shown with the checks a business has passed. Advertisers who had already completed verification received it automatically. Google also discontinued the money-back guarantee that came with the old Google Guarantee badge. Reimbursement requests only apply to bookings made before December 7, 2025. If your marketing still mentions “Google Guaranteed,” it’s time to update it.
How do you rank higher in Local Services Ads?
- Answer calls and messages. Google states that regularly missing calls or messages can hurt your ad ranking. This is the factor most businesses can improve fastest.
- Finish onboarding. Ads from businesses still waiting on the badge appear below fully verified providers.
- Earn genuine reviews. Your rating and review count are shown on the ad and influence which business a customer picks.
- Keep hours and service areas accurate, so you’re shown when and where you can actually take the job.
- Set a realistic budget so your ads don’t stop running partway through the week.
What if I get a bad lead?
Google assesses leads when a customer first makes contact and doesn’t charge for leads it considers invalid. In the US and Canada, charged leads can later receive automatic credits if Google’s systems decide they were low quality. Credits typically show in your account within 30 days. Use the “Rate this lead” option in your leads list to give feedback that helps improve future lead quality.
Local Services Ads vs. Google Ads: which is better?
| Local Services Ads | Google Ads (search) | |
|---|---|---|
| You pay for | Leads (calls, messages, bookings) | Clicks |
| Placement | Very top of results for eligible searches | Top and bottom of results |
| Control | Limited: services, area, hours, budget | Detailed: keywords, ad copy, landing pages, bidding |
| Requires verification | Yes | No (beyond standard advertiser checks) |
| Best for | Service businesses that answer the phone and want simple lead generation | Wider reach, specific services, and driving traffic to your website |
Many local businesses run both: LSAs for the top-of-page phone leads, and Google Ads for specific high-value services and searches LSAs don’t cover.
Frequently asked questions
Do Local Services Ads help my organic or map rankings?
No. LSAs are paid placements. They don’t change your organic or Google Business Profile rankings, though the reviews you earn help both.
How much does a lead cost?
It varies widely by category, market and competition. Google shows estimated lead costs during setup; emergency trades and legal services tend to be among the more expensive.
Can I choose which jobs I get?
Partly. You choose your service types, service area and hours, and you can turn off services you don’t want leads for.
How long does verification take?
It depends on your category and how quickly you submit documents. Some businesses are approved in days; categories with background checks or license reviews take longer.
Want help with Local Services Ads?
We set up and manage Local Services Ads alongside Google Ads and your Business Profile, and track the calls and messages they produce. See our Google Ads management and local SEO services, or request a free online business audit.
