# What Are Google Local Services Ads?

Google Local Services Ads (LSA) are pay-per-lead ads for verified local service businesses that appear at the top of Google search results. Instead of paying per click, you pay for valid leads: calls, messages and booking requests from customers. Businesses must pass Google's screening and verification, which earns the Google Verified badge.

## Key takeaways

- You pay per valid lead, not per click. Google sets lead prices by location, job type, lead type and bidding mode.
- Missed calls can be charged leads: Google counts a missed call during business hours if the caller stays on the line more than 20 seconds.
- Ranking depends on your bid, responsiveness, reviews and profile quality, and relevance to the search. Google says missed calls may hurt responsiveness.
- Since October 2025, a single Google Verified badge has replaced Google's three older Local Services badges, including Google Screened and License Verified by Google.
- Screening checks your business, owner, licenses and insurance where required, and takes about 3–4 weeks on average after you submit documents.

## How do Google Local Services Ads work?

Google Local Services Ads work by showing your business, rating and Google Verified badge at the top of Google search for local service searches like "plumber near me," and charging you only when a customer contacts you through the ad. Customers can call you, send a message, or book directly from the ad.

1. **Create a profile.** Add your business details, service area and the job types you take. Job types and areas you don't serve matter, because Google no longer credits leads for "job type not serviced" or "geo not serviced."
2. **Pass screening and verification.** Google runs business and owner checks and verifies licenses and insurance where required for your category and area. Google says this takes 3–4 weeks on average after you submit documents.
3. **Set a budget and bidding mode.** You set an average weekly budget and choose Maximize leads, Target cost per lead, or Max per lead bidding.
4. **Go live and answer every lead.** Leads arrive as calls, messages and booking requests. How fast you answer affects your ranking.

## How much do Local Services Ads cost?

Local Services Ads cost whatever each valid lead costs in your market, multiplied by the number of leads you get, capped by your budget. Google doesn't publish a price list; it says lead prices vary by location, job type, lead type and bidding mode. You set an average weekly budget, and your monthly maximum is that weekly budget times the average number of weeks in a month.

### What counts as a charged lead?

According to Google, you're charged for valid leads that relate to your business and services. That includes:

- Answered phone calls.
- **Missed calls during business hours where the customer stays on the line for more than 20 seconds.** You pay for that lead whether or not anyone picks up.
- Messages: texts and emails, and voicemails.
- Booking requests (US and Canada).

A customer who contacts you again within 15 days through the same phone number or email isn't charged again. Leads Google judges invalid or low quality aren't charged, and charged leads are reassessed over time and may be credited automatically. Google says credits usually appear within 30 days, and that it no longer credits leads marked "job type not serviced" or "geo not serviced."

> **A missed LSA call is money spent twice**
>
> Because missed business-hours calls can be charged, every LSA call that rings out costs you the lead fee and the job. Run your numbers through the [missed call revenue calculator](https://www.brix.so/tools/missed-call-calculator) and make sure someone, or something, answers. See [after-hours call handling](https://www.brix.so/learn/after-hours-call-handling).

### Cost per lead vs. cost per booked job

The number that matters is what you pay per booked job, not per lead. Divide your [cost per lead](https://www.brix.so/learn/cost-per-lead) by your [booking rate](https://www.brix.so/learn/booking-rate) on LSA leads.

**Cost per booked job**

```
Cost per booked job = cost per lead ÷ booking rate
```

> **Worked example (illustrative numbers, not Google prices)**
>
> A plumbing company pays an average of $60 per LSA lead and gets 50 leads a month: $3,000.
>
> It books 40% of them, so 20 jobs. Its cost per booked job is $60 ÷ 0.40 = **$150**.
>
> If better phone coverage raised the booking rate to 55%, the same $3,000 would book about 27 jobs, and cost per booked job would fall to about $109.

## How does Google rank Local Services Ads?

Google ranks Local Services Ads on your bid, your responsiveness to customers, your profile quality (rating, number of reviews, average response time, high-quality photos and completed verification), and how relevant your business is to the search. Search context, such as the time and location of the search, also plays a part.

**LSA ranking factors Google names, and what you control**

| Factor Google names | What it means for you |
| --- | --- |
| Bid | Higher bids can move your ad up, but you may pay less than your maximum |
| Responsiveness | Answer calls and reply to messages fast. Google says missed calls may hurt responsiveness |
| Rating and number of reviews | Ask every happy customer for a Google review. See [how to ask for Google reviews](https://www.brix.so/learn/how-to-ask-for-google-reviews) |
| Average response time | Reply to messages and booking requests quickly, including after hours |
| High-quality images | Add real photos of your team, trucks and work |
| Verification checks | Keep licenses and insurance current so your badge stays active |
| Relevance | List the services you actually provide and write an accurate business bio |

_Factors from Google's Local Services help center, checked 2026-10-12. Google doesn't publish their relative weights._

## What is the Google Verified badge?

The Google Verified badge is the single trust badge Google shows on Local Services Ads for businesses that pass its screening and verification. It took effect in October 2025 and replaced three older badges: the money-back badge most home service pros had, Google Screened, and License Verified by Google. Google also discontinued the money-back program tied to the old home services badge.

- **Existing advertisers** who had already met the requirements got the new badge automatically, and Google says the change didn't affect ad ranking.
- **New advertisers** earn it by completing Local Services screening and verification.
- **Reimbursement claims** under the old program are limited to services booked through Local Services Ads before December 7, 2025, and must be filed within 30 days of the service being completed.

## Which businesses can use Local Services Ads?

Local Services Ads are open to service businesses in categories Google supports in your country. In the US, Google lists home service categories including appliance repair, carpet cleaning, electricians, fencing, flooring, garage door, general contractors, handymen, HVAC, junk removal, landscapers, lawn care, locksmiths, movers, painters, pest control, plumbers, pool cleaning, roofing, siding, snow removal, solar, tree services, water damage restoration and window cleaning.

### What screening requires

| Check | What Google lists | Applies to |
| --- | --- | --- |
| Background checks | Business check and owner check | US and Canada, select users and verticals |
| License | Business or owner license at the state or province level | Where local law requires it |
| Insurance | General liability (and professional liability where relevant) | Depends on business type |
| Identity | Business owner and fieldworker identity verification | Select verticals |

_Requirements vary by category and location. Check Google's screening page for yours._

## Local Services Ads by trade

| Trade | Why LSA fits | What to watch |
| --- | --- | --- |
| Plumbing | Emergency searches ("burst pipe," "plumber near me") convert fast | After-hours calls: missed ones can still be charged |
| HVAC | No-heat and no-cool searches spike with the weather | Budget runs out fast in heat waves; check the monthly cap |
| Electrical | Panel upgrades and EV charger installs are high-ticket | Be precise about job types you take |
| Roofing | Storm-damage searches in your area | Leads outside your service area aren't credited |
| Garage doors | "Door won't open" is urgent and local | Speed matters; callers try the next listing |
| Pest control and lawn care | One-time leads can become recurring plans | Track lifetime value, not just first-job revenue |

## Local Services Ads vs. Google Ads vs. the local pack

|  | Local Services Ads | Google Search Ads | Local pack (organic) |
| --- | --- | --- | --- |
| You pay | Per valid lead | Per click | Nothing. You can't pay for a better local ranking |
| Badge | Google Verified | None | None |
| Where it shows | Top of search results | Top and bottom of search results | Map results below ads |
| What drives position | Bid, responsiveness, reviews, profile quality, relevance | Bid and ad quality | Relevance, distance and prominence |
| Needs | Screening and verification | Ads account and landing page | A verified [Google Business Profile](https://www.brix.so/learn/google-business-profile) |

Most trades shops do best with a strong [Google Business Profile](https://www.brix.so/learn/google-business-profile) and steady reviews first, then add LSA where the lead cost works. See [what the local pack is](https://www.brix.so/learn/local-pack) for the free side of Google.

## Common Local Services Ads mistakes

- **Missing calls.** You may pay for the lead and lose the job, and your ranking can drop. Cover business hours fully and decide how you'll handle after-hours.
- **Leaving every job type switched on.** Leads for work you don't do may not be credited anymore. Only list what you take.
- **Slow replies to messages.** Average response time is part of profile quality.
- **Ignoring reviews.** Rating and review count feed ranking. Ask every customer, the right way.
- **Judging LSA on cost per lead alone.** Track booked jobs and revenue per lead source. See [lead source tracking](https://www.brix.so/learn/lead-source-tracking).
- **Letting documents lapse.** Expired insurance or licenses can pull your badge and your ads.

BRIX answers every call, including the LSA calls that come in while you're on a job, books the work, and texts back anyone it misses within seconds. After the job it asks happy customers for a Google review, which feeds the rating Google uses to rank your ads.

- [AI receptionist](https://www.brix.so/features/ai-receptionist): Answers every call 24/7, qualifies the caller, books the job and texts back anyone it misses.
- [Missed-call text back](https://www.brix.so/features/missed-call-text-back): Texts a caller back within seconds when a call is missed, so the lead stays with you.
- [Review requests](https://www.brix.so/features/reviews-reputation): Asks every customer for a Google review automatically after the job, without filtering who gets asked.

## Frequently asked questions

### Are Google Local Services Ads worth it for contractors?

They can be if your booking rate on LSA leads is high enough that cost per booked job fits your margins. Divide your average cost per lead by your booking rate, compare that with your average job profit, and make sure you can answer leads fast, since missed calls can be charged and can hurt ranking.

### Do I pay for missed calls on Local Services Ads?

You can. Google lists missed calls during business hours where the customer stays on the line for more than 20 seconds as valid, charged leads. That makes answering every call, or texting back immediately, especially important for LSA advertisers.

### Does Google still offer the old money-back badge on Local Services Ads?

No. In October 2025 Google replaced its three Local Services badges, including Google Screened and License Verified by Google, with one Google Verified badge, and discontinued the money-back program tied to the old home services badge. Advertisers who had already met the requirements received the new badge automatically.

### How long does it take to get approved for Local Services Ads?

Google says screening and verification takes 3–4 weeks on average after you submit your documents. The checks depend on your category and location and can include business and owner background checks, license and insurance verification.

### How do I get a refund for a bad LSA lead?

Google assesses leads when they arrive and doesn't charge for those it judges invalid or low quality. Charged leads are reassessed and may be credited automatically, usually within 30 days. Google says it no longer credits leads for job types or areas you don't serve, so keep those settings accurate.

### How do I rank higher on Local Services Ads?

Google says ranking depends on your bid, responsiveness, profile quality (rating, number of reviews, response time, photos and verification) and relevance to the search. Answer calls and messages fast, earn steady reviews, add real photos and list only the services you provide.

### What's the difference between Local Services Ads and Google Ads?

Local Services Ads charge per valid lead and require screening and verification, and they show the Google Verified badge. Standard Google Search Ads charge per click and send people to your website. Many contractors run both and compare cost per booked job.

## Related

- [What Is a Google Business Profile?](https://www.brix.so/learn/google-business-profile)
- [What Is the Google Local Pack?](https://www.brix.so/learn/local-pack)
- [How to Ask for Google Reviews](https://www.brix.so/learn/how-to-ask-for-google-reviews)
- [What Is Cost Per Lead?](https://www.brix.so/learn/cost-per-lead)
- [What Is Booking Rate?](https://www.brix.so/learn/booking-rate)
- [What Is Lead Source Tracking?](https://www.brix.so/learn/lead-source-tracking)
- [Cost Per Lead Calculator (and Marketing ROI)](https://www.brix.so/tools/cost-per-lead-calculator)
- [Missed Call Revenue Calculator](https://www.brix.so/tools/missed-call-calculator)
- [AI Receptionist for Contractors That Books the Job, Not Just the Message](https://www.brix.so/features/ai-receptionist)
- [Missed Call Text Back: Keep the Lead When You Can't Pick Up](https://www.brix.so/features/missed-call-text-back)

## Sources

- [Google Ads Help: How you're charged for Local Services Ads leads](https://support.google.com/google-ads/answer/7195435?hl=en) (checked 2026-10-12)
- [Google Ads Help: Local Services Ads lead credits](https://support.google.com/google-ads/answer/7435486?hl=en) (checked 2026-10-12)
- [Google Ads Help: About Local Services Ads ad ranking](https://support.google.com/google-ads/answer/7527305?hl=en) (checked 2026-10-12)
- [Local Services Help: How bidding works for Local Services Ads](https://support.google.com/localservices/answer/10125017?hl=en) (checked 2026-10-12)
- [Local Services Help: About Google Verified badge](https://support.google.com/localservices/answer/16498018?hl=en) (checked 2026-10-12)
- [Local Services Help: Business screening and verification requirements](https://support.google.com/localservices/answer/12174778?hl=en) (checked 2026-10-12)
- [Local Services Help: About Local Services Ads](https://support.google.com/localservices/answer/6224841?hl=en) (checked 2026-10-12)
- [Google Business: Local Services Ads (US eligible categories)](https://business.google.com/us/ad-solutions/local-service-ads/) (checked 2026-10-12)
- [Search Engine Land: Google unifies Local Services Ads under new Verified badge (badge change date)](https://searchengineland.com/google-local-services-ads-verified-badge-461001) (checked 2026-10-12)

---
Written by BRIX Editorial Team. Last updated 2026-10-12.
Canonical: https://www.brix.so/learn/google-local-services-ads