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Glossary · Marketing

What is Google Local Services Ads?

Google Local Services Ads are pay-per-lead ads with the Google Verified badge. How leads are charged, how ranking works, and what changed in 2025 and 2026.

Updated October 15, 2026 · 5 min read

Definition

Google Local Services Ads (LSA) are pay-per-lead ads for local service businesses such as plumbers, HVAC companies and electricians. They appear on Google Search and Google Maps for searches like "plumber near me", and the business pays for each valid lead (a call, message or booking request) rather than per click. Advertisers must pass Google's screening and verification to run them and earn the Google Verified badge.

Also called: LSA, Local Services Ads, Google LSA, Google Guaranteed ads (former name), pay-per-lead ads

You pay for
Valid leads: calls, messages, booking requests
Badge
Google Verified (replaced Google Guaranteed and Google Screened from Oct 2025)
Ranking inputs
Bid, likelihood of a lead, profile quality incl. reviews and response time
Repeat contact
Not charged again within 15 days
2026 change
Moving into Google Ads as Performance Max with pay-per-lead goals

Local Services Ads in plain English

Local Services Ads are Google's way of selling a contractor phone calls instead of clicks. A homeowner searches for a service in their area, sees a short list of verified local businesses with their rating, and calls, messages or requests a booking. If that contact counts as a valid lead, the business pays for it.

For a trade business, that pricing model changes the question. With search ads, you pay for attention and hope it turns into a call. With LSA, you pay for the call and need to turn it into a job.

How do Google Local Services Ads work?

  1. 1

    Pass screening and verification

    New advertisers must complete Google's Local Services screening and verification process before the Google Verified badge is issued.

  2. 2

    Set service area, job types and hours

    Your business hours come from your Google Business Profile and affect which missed calls count as leads.

  3. 3

    Set a budget and bidding mode

    You set an average weekly budget and a bidding mode, which sets the maximum you'll pay per lead.

  4. 4

    Customers contact you

    Calls, messages and, in the US and Canada, booking requests arrive through Google. Messages use anonymized proxy numbers and email aliases.

  5. 5

    Google charges valid leads

    Invalid or low-quality leads aren't charged. Charged leads are reassessed and may be credited automatically.

Source for the steps: Google's help pages on how leads work and the Google Verified badge.12

What counts as a charged lead?

Contact typeCharged whenNot charged when
Phone callYou answer, or you call back and speak with themJudged invalid or low quality
Missed call in business hoursThe caller stayed on longer than 20 seconds (voicemail and automated greetings treated the same way)The call was shorter
Message (text or email)The customer messages youJudged invalid or low quality
Booking requestIn the US and Canada onlyOutside those countries (not offered)
Repeat contactAfter 15 days with no activityThe same customer again within 15 days

Charged leads are reassessed over 30 days and may receive an automatic credit if later judged low quality, duplicate or invalid.1 Credits are no longer given for "job type not serviced" or "geo not serviced" leads, so keep your job types and service area accurate.3

How does Local Services Ads ranking work?

Google ranks LSA advertisers in an auction using three inputs:4

InputWhat Google says feeds itWhat you control
Your bidThe maximum you'll pay per leadBidding mode and budget
Likelihood of a leadYour responsiveness to inquiries, what the customer searched for, how relevant your business isAnswer calls and messages fast; accurate job types
Profile qualityRating, number of reviews, average response time, high-quality images, verification checksAsk every customer for a review; reply quickly; add real photos

Responsiveness shows up twice, in lead likelihood and in profile quality, which is why speed to lead matters more on LSA than almost anywhere else. Reviews feed profile quality, which makes review velocity a ranking input, not just a reputation metric.

Google Verified replaced Google Guaranteed

Google announced on August 20, 2025 that a single Google Verified badge would replace Google Guaranteed, Google Screened and other LSA badges, starting in October 2025.5 Existing advertisers who had completed verification earned the new badge automatically. Google also ended the money-back guarantee tied to the old Google Guarantee badge; reimbursement requests were limited to services booked through LSA before December 7, 2025.2

What is changing in 2026?

Google is moving Local Services Ads into Google Ads as Performance Max campaigns with pay-per-lead goals.6

  1. Aug 2026

    First phase

    Select US home and storefront service advertisers, such as plumbing, HVAC and roofing, begin migrating.

  2. Late 2026

    Wider rollout

    Service-area businesses without storefronts and accounts with custom bidding or booking setups.

  3. 2027

    Everyone else

    Non-US accounts and remaining categories.

What stays the same: you pay only for valid leads, ads still show only on Google Search and Maps, and campaigns stay keywordless. What changes: weekly budgets become daily averages, manual bidding goes away, business details sync one way from your Google Business Profile, and LSA performance reports do not transfer, so download them before migration.6

Local Services Ads vs Google Search ads

 Local Services AdsGoogle Search ads
You pay forValid leadsClicks
Verification requiredYes, screening and verificationNo business-level screening
KeywordsNone: job types and service areaYou choose keywords
Ad text and landing pageYour profile, reviews and photosYour ad copy and your website
Biggest ranking lever you controlResponsiveness and reviewsBids, ad relevance and landing page

How do you measure Local Services Ads?

Google's reports stop at the lead. Whether LSA is worth it depends on what happens next, so tag LSA leads with their own source and track cost per lead, booking rate and revenue per lead against your other channels. A worked budget from cost per lead to cost per booked job is in Google Local Services Ads for contractors.

Local Services Ads in TradesWork

Google Local Services is one of the lead source cards in the TradesWork lead inbox. LSA leads land with the rest, are de-duplicated against existing customers, tied to a campaign so the job they become carries the source, and show the time to first reply, the same responsiveness Google weighs in LSA ranking.

Footnotes

  1. Google Local Services Help, How leads work. ↩ ↩2

  2. Google Local Services Help, About Google Verified badge. ↩ ↩2

  3. Google Local Services Help, About automated Local Services Ads lead credits. ↩

  4. Google Local Services Help, About ad rankings. ↩

  5. Google, Google Verified makes it easier to find trusted local businesses advertising on Google, August 20, 2025. ↩

  6. Google Ads Help, Local Services Ads transition to Performance Max campaigns with pay-per-lead goals. ↩ ↩2

Free download

Field Service KPI Scorecard

Track the 12 numbers that run a service business, week by week, with formulas already built in.

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  • 12 KPIs with definitions and formulas
  • 52-week tracker with trends
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  • Per-technician view

Frequently asked questions

There is no fixed price. You set an average weekly budget and a bidding mode, which sets the maximum you pay per lead, and Google says lead prices vary by location, job type, lead type and bidding mode. Message leads usually cost less than phone leads. You pay only for leads Google considers valid, and some poor-quality leads are credited automatically.

Ready to run a tighter shop?

Try the TradesWork AI plan free for 14 days. Bring your customers and price book, or start fresh with a price book made for your trade.

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