GOOGLE LOCAL SERVICES ADS.
Local Services Ads put service businesses at the top of Google results and charge for leads, not clicks. Here is how they work, what you pay for, and what to do when a lead is junk, with Google's help pages linked throughout.
WHAT CHANGED RECENTLY
- Local Services Ads are moving into Google Ads — Campaign management moves under the Google Ads interface.
- Local Services Ads requirements update and AI image ban — New profile requirements, and AI-generated photos disallowed.
This guide covers what stays true. The blog tracks the changes as they land.
HOW THEY WORK
Google describes Local Services Ads as a way for service businesses to advertise on Google Search and get leads directly through calls and messages.1 You pay for leads related to your business and services, not for impressions or clicks.1
Eligible categories are limited and differ by country. Google's Canada overview lists trades such as plumbing, electrical, HVAC, cleaning, lawn care, roofing and locksmiths.1 Check your own country and category on Google's help centre before planning a budget.
Local Services Ads are a separate product from ads that appear inside Google Maps; our Google Maps ads guide covers those. The Google Verified badge is defined in the glossary, and our comparisons help if you are also weighing a managed lead platform.
WHAT COUNTS AS A LEAD
| Lead type | Charged? | Note |
|---|---|---|
| Phone conversation | Yes, if valid [2] | Answer during the hours you set |
| Message or email | Yes, if valid [2] | US and Canada only; Google says message leads are typically cheaper than calls [2] |
| Booking request | Yes, if valid [2] | US and Canada only [2] |
| Missed call you return | Can be [2] | Only when you make meaningful contact [2] |
Google says lead prices vary by location, job type, lead type and bidding mode.2
JUNK LEADS AND CREDITS
Google assesses leads when the customer first makes contact and does not charge leads it finds invalid. It may also credit charged leads later if its models decide they were low quality.3 You can report a poor lead through that lead's feedback survey.2
- Automatic lead credits are available only in the United States and Canada, and not for health care, tax specialists or advertisers in EMEA.23
- Google lists cases it won't credit, such as a customer who contacts you outside business hours, asks for advice without booking, or only asks about price.2
Rules change. Read Google's current lead-credit page before disputing.
GETTING ON AIR
Local Services Ads run on a weekly budget with a bidding maximum, set when you complete billing setup.2
Google lists what has to be in place before ads serve: a licence or business registration, acknowledgement that you hold the appropriate business licences, reviews subject to your category's requirements, and completed billing with a budget.1
- Pre-badge ads. Google lets you start receiving leads while onboarding finishes, but says pre-badge ads appear below fully-verified providers in results.1
- The Google Verified badge shows the business passed Google's screening process.1 What screening involves differs by category and country, so read your own category's page rather than a summary of someone else's.
- Responsiveness is the ranking lever Google names outright. In Google's words: “If you regularly fail to answer calls or respond to messages, your ad ranking may be affected.”1 Declining a job still counts as responding.
BEFORE YOU DISPUTE A LEAD
Google names the situations it will not credit: a valid lead received outside your business hours, a customer asking for advice rather than the service, a cancelled booking, price research, a customer who doesn't reply to your follow-up, and service mismatches.2
Google has also stopped supporting credits for “job type not serviced” and “geo not serviced” leads.3 Set your job types and service area to match what you actually do and where you actually go, because a mismatch is now your cost, not Google's.
When a credit is issued, Google says it is usually applied to your account balance within 30 days, and that the original lead charge still appears on your invoice.3 Read the invoice and the balance together before concluding you were double-charged.
FAQ
Local Services Ads or regular Google Ads?
If your category is eligible, many service businesses run both: Local Services Ads for leads, Google Ads for extra reach and keywords LSA doesn't cover. See our Google Ads guide.
Do reviews matter?
Google lists reviews among the basic setup requirements.1 See how to get more Google reviews without breaking the rules.
Can you guarantee a number of leads?
No. Lead volume and price depend on your market, category and budget, and Google runs the system.
SOURCES
- Local Services Help, Local Services Ads overview.
- Local Services Help, How leads work.
- Local Services Help, About automated Local Services Ads lead credits.
KEEP READING
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