If you've searched for a plumber, electrician, or locksmith lately, you've probably seen them: those ads at the very top of Google with the green "Google Guaranteed" badge.
Those are Local Service Ads (LSAs), and they work completely differently than regular Google Ads.
What Are Local Service Ads?
Local Service Ads are Google's pay-per-lead advertising platform for local service businesses. Instead of paying when someone clicks your ad, you pay when someone actually contacts you.
Key differences from regular Google Ads:
- Pay per lead, not per click
- Appear at the very top of search results (above regular ads)
- Feature Google's trust badges
- Connect directly via call or message
- Limited to specific service industries
How LSAs Work
1. You Set Up Your Profile
Create a business profile with:
- Services you offer
- Areas you serve
- Hours of operation
- Licenses and insurance
2. Google Verifies Your Business
Google performs background checks and verifies:
- Business licenses
- Insurance coverage
- Owner/employee background checks
This verification earns you the "Google Guaranteed" or "Google Screened" badge.
3. Your Ads Appear
When someone searches for services you offer in your area, your ad can appear at the top of results.
4. You Pay for Leads
When someone calls or messages you through the ad, you're charged for that lead. Costs vary widely by trade and location, driven by how contested your category is locally.
Google Guaranteed vs Google Screened
Google Guaranteed (green checkmark):
- For home services (plumbers, electricians, HVAC, etc.)
- Google operates a guarantee that can refund customers for unsatisfactory work, capped at an amount that varies by market
- Requires license and insurance verification
Google Screened (blue checkmark):
- For professional services (lawyers, financial planners, real estate)
- Verifies licenses and credentials
- No money-back guarantee component
Industries Eligible for LSAs
LSAs are available for specific service categories:
Home Services:
- Plumbers, electricians, HVAC
- Roofers, garage door services
- Locksmiths, pest control
- House cleaning, carpet cleaning
- Lawn care, tree services
Professional Services:
- Lawyers (various practice areas)
- Tax professionals, financial planners
- Real estate agents
- Immigration services
Other Services:
- Auto services (some)
- Pet services (some markets)
Google continues to expand eligible categories.
LSA Costs
What You Pay
- Per-lead pricing: varies widely by trade and market, and is set by how contested your category is locally
- No monthly minimum: Only pay when you get leads
- Budget control: Set weekly budget limits
What Affects Cost
- Your industry (lawyers pay more than cleaners)
- Your location (competitive markets cost more)
- Time of year (seasonal demand affects pricing)
Pros of Local Service Ads
Prime placement: Above all other ads and organic results.
Pay for leads, not clicks: No wasted spend on tire-kickers.
Trust signals: Google's badge builds instant credibility.
Easy to manage: Simpler than regular Google Ads.
Direct contact: Calls and messages come straight to you.
Dispute bad leads: Can dispute irrelevant or spam leads for credit.
Cons of Local Service Ads
Limited control: Can't target specific keywords.
Verification requirements: Background checks and documentation required.
Industry restrictions: Not available for all business types.
Lead quality varies: Not every lead is a good fit.
Competition for top spots: Limited positions available.
Less flexibility: Fewer customization options than Google Ads.
LSAs vs Regular Google Ads
| Factor | Local Service Ads | Google Ads | |--------|------------------|------------| | Payment | Per lead | Per click | | Position | Very top | Below LSAs | | Setup | Simpler | More complex | | Control | Limited | Extensive | | Trust badge | Yes | No | | Industries | Limited | Any |
Use LSAs when:
- You're in an eligible industry
- You want simpler management
- Lead quality is more important than volume
Use Google Ads when:
- You need more control over targeting
- You're not in an LSA-eligible category
- You want to target specific keywords
Best approach: Many businesses use both together.
Getting Started with LSAs
Step 1: Check Eligibility
Visit Google's Local Services site to see if your business category is eligible in your area.
Step 2: Gather Documents
You'll need:
- Business license
- Insurance certificates
- Owner ID for background check
Step 3: Create Your Profile
Set up your business profile with services, service areas, and hours.
Step 4: Complete Verification
Submit documents and complete background checks. This can take 2-4 weeks.
Step 5: Set Your Budget
Start with a conservative weekly budget and adjust based on results.
Step 6: Manage Leads
Respond quickly to leads. Response time affects your ranking.
Tips for LSA Success
Respond fast: Quick response improves your ranking and close rate.
Request reviews: LSA reviews boost your visibility.
Dispute bad leads: Don't pay for spam or irrelevant leads.
Keep profile updated: Accurate hours and services matter.
Track results: Know your cost per customer, not just cost per lead.
The Bottom Line
Local Service Ads can be an excellent lead source for eligible businesses. The pay-per-lead model reduces wasted spend, and Google's trust badges help convert searchers into callers.
If you're in an eligible industry, LSAs are worth testing alongside your other marketing efforts.
Need help setting up Local Service Ads? Let's talk.
PresenceKit Team
Helping small businesses grow their online presence
