Google Local Services Ads are pay-per-lead ads that sit at the top of Google Search and Maps for eligible trades. You pay for a valid call, message or booking, not a click. They are worth it for licensed contractors who answer the phone fast, have strong reviews and track cost per booked job. Slow responders usually lose money.
| Question | Short answer (checked 13 October 2026) |
|---|---|
| How you pay | Per valid lead: answered calls, missed calls over 20 seconds during business hours, messages, voicemails and booking requests |
| Published price list | None. Cost per lead depends on trade, job type, market, budget and bidding mode |
| Trust badge | One “Google Verified” badge now replaces the older badges; the Google Guarantee money-back program has ended |
| Screening | Business registration, identity, owner and field-worker background checks, plus license and insurance checks by category |
| Bad leads | Credited automatically by Google; “job type not serviced” and “location not serviced” credits are no longer supported |
| Where it is managed | Moving into Google Ads as a pay-per-lead Performance Max campaign, in phases through 2027 |
| Best for | Licensed trades with fast phone coverage, a healthy review count and a clear way to track booked jobs |
| Skip it if | You miss calls during business hours, sell mostly large custom projects, or cannot tie leads to signed work |
What are Google Local Services Ads, and where do they show up?
Local Services Ads (LSA) are a separate product from regular Google Ads search campaigns. You do not bid on keywords. You tell Google which services you offer, where and when, and Google builds a profile it shows to people searching for that service in that area. The ad carries your business name, star rating and review count from your Google Business Profile, your hours, a short bio and a Google tracking number that forwards to your real phone.
The ads appear on Google Search and Maps, usually above the regular paid ads and the map pack for searches like “roofer near me.” No keywords, no ad copy. That simplicity is the appeal and the limit: you control your profile, budget, bid and how fast you pick up, and little else.
Only certain categories qualify. In the US, Google’s list includes general contractors, roofers, HVAC, plumbers, electricians, painters, handymen, flooring, landscaping, and kitchen and bathroom remodeling. Availability varies by category and location, so run Google’s eligibility checker for your trade and zip codes first.
What changed with Local Services Ads in 2025 and 2026?
Most LSA guides are now out of date. These are the changes that matter to a contractor deciding today:
- One badge instead of three. Google is “simplifying our advertiser badging by launching a single badge for all advertisers.” Google Verified replaces the older Google Guaranteed and Google Screened badges. Verified advertisers got it automatically, and Google says ranking is not affected.
- The money-back guarantee is gone. Google discontinued the reimbursement promise behind the old Google Guarantee; only services booked before 7 December 2025 qualified for a claim.
- No more manual lead disputes. Google assesses leads on arrival, reassesses charged leads over 30 days and credits automatically. It “no longer supports credits” for job-type-not-serviced and location-not-serviced leads.
- Missed calls are billable. Since 1 October 2026, a call during business hours is charged if the caller stays on the line more than 20 seconds, answered or not.
- LSA is moving into Google Ads as a Performance Max campaign type “built for pay-per-lead goals.” Select US home and storefront advertisers moved in August 2026, broader groups follow later in 2026, and the rest in 2027.
What does the move into Google Ads change day to day?
Billing stays pay-per-lead, and ads still show only on Search and Maps. Control is what changes. Weekly budgets become daily budgets (your weekly average divided by seven). Manual bidding, including a maximum cost per lead, is no longer supported, and one campaign-level target replaces per-category targets, so different bids for repair and replacement work mean separate campaigns. Old LSA performance reports do not carry over, so download them before your account moves. Lead history does.
Is Google Guaranteed still a thing?
Not as a separate program. Google Guaranteed was the home services badge, backed by Google’s reimbursement promise; Google Screened was the professional services version without one. Both now fold into Google Verified. If a sales rep promises you a “Google Guaranteed badge,” their information predates the change. The screening behind the badge has not gotten easier, and Google re-evaluates advertisers regularly. Failing a later review can cost you the badge, pause your ads or suspend the account.
What does Google check before you can run Local Services Ads?
Google’s screening page lists these checks for US advertisers:
- Business registration via a D-U-N-S number, or a Secretary of State registration, EIN or state revenue registration. A new D-U-N-S application can take up to 30 days.
- Representative identity: affiliation confirmed through Dun & Bradstreet data, then a photo ID check run by Evident. Names must match exactly across documents.
- Background checks on every owner, the business itself and, in applicable categories, field workers (not office staff). There is no credit pull and no charge for the checks.
- Licenses, checked against state databases where possible, plus your confirmation of county and city licenses.
- Insurance, where the category requires it, in your advertised business name and valid for at least 14 days after you submit it.
- Google Business Profile access as an owner or manager.
A failed background check means a 30-day wait to reapply, and 180 days after a second denial. Google also offers “pre-badge” ads that can bring in leads while you finish onboarding, subject to category rules such as a review minimum.
How much do Local Services Ads cost?
Google does not publish a cost per lead, and any single figure you read online is a third-party average across trades that will not match yours. What you can know is what moves the price:
- Trade and job type. A roof replacement or HVAC system lead costs more than a small repair lead, because more contractors compete for it and each job is worth more.
- Market. Dense metros with many verified competitors cost more per lead than smaller towns, which is why some contractors target the suburbs just outside the metro.
- Budget. It caps how many leads you buy. Google recommends funding at least ten leads a week and says the model needs about two weeks to settle.
- Bidding mode. The classic dashboard offers Maximize leads, Target cost per lead and a manual Max per lead cap. After migration, the manual cap disappears.
- Profile and responsiveness. Google ranks partly on how likely an ad is to produce a lead, so a stronger profile can win placement without bidding more.
- Lead types. Turning on messages and bookings brings more leads, and more charges.
Treat the bid Google recommends inside your account as a starting point to check against booked work, not a forecast.
What counts as a charged lead?
Google charges for a call you answer or return, a missed call or voicemail during business hours lasting more than 20 seconds, a text or email message, and a booking request (US and Canada). It does not charge when a caller hangs up before pressing a key in your phone menu, for repeat contact from the same customer within 15 days, for unanswered calls outside your ad schedule or business hours, or for leads it flags as spam or low quality on arrival.
So your business hours setting is now a billing control: if nobody covers the phone at 7 a.m., do not list 7 a.m. as open. And a “press 1” phone menu changes when the 20-second timer starts, so set it up deliberately.
How do you get credit for a bad lead now?
You mostly cannot ask. Google’s models decide, crediting invalid or low-quality leads to your balance automatically, usually within 30 days. The original charge still shows on the invoice, which matters if your bookkeeper reconciles against invoices. You can rate leads through Google’s feedback survey, which occasionally earns a credit. What you can no longer recover is the classic complaint: a caller wanting a service you do not offer, or living outside your area. The defense is upstream. Remove unwanted job types, tighten your service area and keep your bio specific.
How do you set up Local Services Ads?
- Check eligibility for your trade and zip codes.
- Gather paperwork first: registration or D-U-N-S, license numbers, a current insurance certificate in your exact business name, and ID for every owner.
- Sign up and connect your Google Business Profile, which supplies your reviews and rating.
- Choose job types and service areas narrowly. Bad-fit leads are no longer credited.
- Set hours you can staff. Missed calls in those hours are billable.
- Complete background checks for owners and, where required, field workers.
- Set a budget and bidding mode, then leave it about two weeks while the model learns.
- Answer every lead fast and mark each one booked or not, so your numbers stay honest.
How does Google decide who shows first?
LSA runs as an auction, but bid is only part of it. Google’s “About ad rankings” page names your bid, your responsiveness to customer inquiries, the search context (job, time and location), how relevant your business is to the search, and profile quality: rating, number of reviews, average response time and high-quality images. If several of your locations serve the same area, only the highest-ranking one shows.
This is where LSA and local SEO overlap. The reviews, photos and accurate details that drive LSA rank live on the same Google Business Profile that drives your map pack ranking, which is why we treat them together in our local SEO for contractors work.
What is the real cost per booked job with Local Services Ads?
Cost per lead is the number Google shows you. Cost per booked job tells you whether LSA makes money. Use the same formula for every lead source:
Cost per booked job = total LSA spend in a period ÷ jobs booked from LSA in the same period.
Count spend as lead charges minus credits actually received. Count booked jobs as signed or scheduled work, not estimates. Then work backward through the funnel, where the fixable problems are:
- Answer rate = leads you spoke to ÷ charged leads. Every missed billable call raises cost per booked job and can hurt your ranking.
- Estimate rate = estimates given ÷ leads you spoke to. A low number usually means wrong job types or too wide a service area.
- Close rate = jobs booked ÷ estimates given. That is your sales process, whatever the lead source.
A hypothetical month, counts only: 40 charged leads, 30 answered, 14 estimates, 5 booked jobs. Divide that month’s net spend by 5, then compare the result with your average gross profit per job and with your other lead sources. If it is a small share of the gross profit on a typical job, LSA is earning its place. If it eats most of it, fix answer rate and job types before raising the budget.
Who are Local Services Ads good for?
- Licensed residential trades with steady demand, such as roofing repair, HVAC, plumbing, electrical and remodeling, where homeowners call the first credible name they see.
- Contractors who answer the phone, with an office person or answering service covering every listed hour.
- Businesses with a strong review base, since rating and review count feed ranking directly.
- Owners who track jobs back to source, so cost per booked job is a real number.
- Companies that want exclusive leads. A homeowner calling your LSA number is calling you, not a shared list.
Who should skip Local Services Ads, or wait?
- Crews that miss daytime calls with no plan to fix it. You pay for those calls and lose ranking.
- Design-build and large custom work with months-long sales cycles. LSA leads skew toward urgent and mid-size jobs, and the gap between lead and signature makes the math hard to read.
- Contractors who need precise control over which jobs they pay for. That control shrinks as LSA moves into Google Ads.
- New businesses with few reviews, which struggle to outrank established competitors.
- Anyone who cannot pass screening yet, for example while a license or insurance policy is being sorted out.
How do Local Services Ads compare with regular Google Ads and lead marketplaces?
Regular Google Ads search campaigns charge per click and give you keyword, ad copy and landing page control, which suits larger projects where a strong page pre-sells your company. LSA charges per lead and needs no website, but you control far less. On lead marketplaces, the platform owns the homeowner relationship and a lead may go to several contractors; our Angi Leads review for contractors runs the same cost per booked job math on one of them, and roofers can compare options in our list of roofing lead generation companies. For most contractors the answer is a mix, judged on one formula.
Disclosure: BuiltRight Marketing is a contractor marketing agency offering local SEO and paid advertising, so we have an interest in how contractors spend their marketing budget. This review is based on Google’s own published documentation as of 13 October 2026.
Are Google Local Services Ads worth it in 2026?
For the right contractor, yes. Exclusive, high-intent calls at the top of Google, paid per lead, are hard to find elsewhere. But the product has shifted toward Google’s control: one badge, no homeowner guarantee, automatic credits only, billable missed calls and less manual bidding. That raises the bar on your side. Answer fast, keep your profile strong and measure cost per booked job every month, and LSA can be one of your best sources. Skip those steps and it quietly becomes one of your most expensive.
Frequently asked questions
Do I need a website to run Local Services Ads?
No. Homeowners contact you through the ad or your profile. A good website still helps your local SEO and the homeowners who research you before calling.
Is the Google Guaranteed badge still available?
No. Google replaced it and Google Screened with a single Google Verified badge and ended the money-back guarantee for services booked on or after 7 December 2025.
Can I still dispute a Local Services Ads lead?
Not manually. Google credits invalid or low-quality leads automatically after review. Leads for job types or areas you do not serve are no longer credited.
Do I pay for missed calls?
Yes, during business hours, if the caller stays on the line more than 20 seconds. Unanswered calls outside your schedule or hours are not charged.
How long does verification take?
Mostly as long as your paperwork does. A new D-U-N-S number can take up to 30 days, and every owner and required field worker needs a background check.
Should I run Local Services Ads or invest in local SEO?
Usually both. LSA buys calls now; local SEO builds map pack rankings you do not pay for per call. Both run on the same Google Business Profile.
Book a strategy call
Not sure whether Local Services Ads would pay for your company, or whether your current leads are turning into booked jobs? BuiltRight Marketing helps residential contractors build lead sources they can measure. Book a strategy call through our Let’s Talk page or call +1 262-254-3904, and we will look at your numbers with you. No pressure either way.