Guide
Google Local Services Ads: the complete guide for 2026
Local Services Ads put a verified business at the top of Google with a phone button, and you pay per lead instead of per click. A lot changed in 2025 and 2026: new badge, automated credits, and a move into Google Ads. Here is how it works now.
Ads · AttractKey takeaways
- Local Services Ads charge per lead (a call, message or booking request), not per click.
- Google Verified replaced the Google Guaranteed, Google Screened and License verified badges, and the Money Back Guarantee was discontinued.
- Ranking depends on your bid and budget plus profile quality: reviews, rating, responsiveness, photos and completed verification.
- Low-quality leads are now credited automatically; credits for job types or areas you do not serve are no longer offered.
- From August 2026, Local Services Ads accounts are moving into Google Ads as Performance Max campaigns with pay-per-lead goals, in phases.
What are Google Local Services Ads?
Google Local Services Ads (LSA) are ads for local service businesses that show your business profile (services, service area, hours and reviews) at the top of Google, and charge you only when a customer contacts you through the ad (Google Local Services Help). You pay per lead, not per click, and you must pass Google screening and verification to earn the badge.
You will see local service ads called many names: Google local service ads, local services ads, LSA, or by the old badge name "Google Guaranteed ads". They are all the same product, separate from regular Google Search ads.
Two big changes happened recently. In 2025 Google replaced its several badges with a single Google Verified badge (Google blog). And from August 2026, Local Services Ads accounts are being moved into Google Ads as Performance Max campaigns with pay-per-lead goals (Google Ads Help). Both are covered below.
Ads by Locus Intelligence runs Google Search, Performance Max, Maps local ads and call-only campaigns, plus Meta campaigns, per location. It does not manage Local Services Ads as a feature. This guide explains LSA as Google describes it, so you can decide what fits.
How Local Services Ads differ from regular Google Search ads
On a search like "plumber near me", local services ads can appear above the regular text ads and the map. They look like small business cards with a badge, a star rating and a call or message button, not like a headline and description.
| Local Services Ads | Google Search ads | |
|---|---|---|
| What you pay for | A lead: a call, message, voicemail or booking request | A click (or a conversion, if you choose that bidding) |
| What the ad shows | Business name, badge, rating, reviews, hours, years in business | Headline, description, links, assets you write |
| Keywords | None. You choose job types and service areas | You choose keywords and match types |
| Landing page | Your LSA profile, not your website | Your website or a call |
| Eligibility | Only listed categories, after screening and verification | Almost any business that follows ad policies |
| Badge | Google Verified, when checks are complete | None |
| Where managed | Local Services, moving into Google Ads from 2026 | Google Ads |
For a full side-by-side on cost, control and when each wins, read Local Services Ads vs Google Ads.
Local service ads categories: who is eligible in the US
Local Services Ads are available only for certain categories and areas. Google publishes the US list on its getting-started page (Getting started, United States). It is much broader than the original home services list and now includes legal, health, beauty, auto, pet, education and even restaurants.
| Group | Examples from Google's US list |
|---|---|
| Home services | Plumbers, electricians, HVAC, roofers, locksmiths, garage door, house cleaning, pest control, lawn care, landscaping, movers, handyman, water damage, tree services, pool cleaner, solar energy contractor |
| Legal | Lawyers, including personal injury, family, criminal, DUI, immigration, estate, bankruptcy, business and real estate lawyer services |
| Health | Dentist, orthodontist, chiropractor, optometrist, ophthalmologist, physical therapist, primary care physician, podiatrist, dermatologist, veterinarian |
| Auto | Auto repair shop, auto body shop, auto glass, tire shop, oil change, brake shop, transmission shop, car wash, car detailing, towing |
| Beauty and wellness | Hair salon, barber shop, nail salon, massage therapist, personal trainer, yoga studio, facial spa |
| Other services | Real estate services, tax services, financial planning, child care, preschool, tutor, driving instructor, pet grooming, pet boarding, storage, funeral home |
| Food | Many restaurant and cafe types, from coffee shops and bakeries to pizza and fine dining |
Some categories (for example architect, tattoo studio, insurance agency) are listed for California and Florida only. Check the live list before you plan, because it changes.
Outside the US, Local Services Ads run in a number of other countries with their own category lists. Google says non-US accounts move into Google Ads in 2027.
Google Verified, Google Guaranteed and Google Screened: what changed
For years, LSA showed one of three badges: Google Guaranteed for home services, Google Screened for professional services, and License verified by Google for health. In August 2025 Google announced a single Google Verified badge to replace them, along with the Money Back Guarantee, starting that October (Google blog).
- Existing advertisers who had completed verification moved to the Google Verified badge automatically (About the Google Verified badge).
- New advertisers earn it by completing the Local Services screening and verification process.
- The Money Back Guarantee is discontinued. Google accepted reimbursement requests only for services booked through LSA before December 7, 2025, within 30 days of the job being completed.
- Display: Google shows the badge dynamically, when it predicts the badge will help a customer decide, along with details of which checks the business passed.
Some Google marketing pages still describe Google Guaranteed and Google Screened badges. The help center and the August 2025 announcement are the current source: one Google Verified badge. If an agency still sells you "Google Guaranteed", ask what they mean.
What screening and verification involve
Every advertiser needs a public, verified Google Business Profile. Beyond that, checks depend on the category and may include business owner identity, business registration, state licenses, insurance and background checks (Business screening and verification requirements, US). Google says the process takes 3 to 4 weeks on average after you submit documents.
| Category type | Typical checks (US) |
|---|---|
| Restaurants, coffee and dessert shops | Verified Google Business Profile only |
| Home services and auto care | Business and owner background checks, business registration, general liability insurance, state business and owner licenses |
| Urgent trades such as electricians | The above, plus background checks on the service professionals |
| Health care | Provider and practice background checks, state licenses, NPI verification for select users |
| Lawyers | Owner identity, business checks, professional liability insurance, state bar license for each attorney |
You can start receiving leads before every check is done with what Google calls pre-badge ads. They appear below providers who have completed onboarding and earned the badge.
How pay per lead works, and what you are charged for
A lead is a customer contacting you through the ad. Google counts four kinds (How leads work):
- Phone leads: answered calls, or calls you return and connect. A missed call can count if the caller stayed on the line during your business hours.
- Message leads: texts or emails sent through anonymized numbers and addresses. Google says message leads are typically priced lower than phone leads, though not always.
- Booking leads: booking requests through the ad, available only in the US and Canada.
- Voicemails also count as valid leads.
You are not charged for leads Google judges invalid or low quality, for follow-up contact from the same phone number or email within 15 days of a charged lead, for missed calls shorter than 20 seconds, or for unanswered calls outside your ad schedule and business hours. Lead prices vary by location, job type, lead type and bidding mode.
Lead disputes and credits
Google now issues credits automatically. Leads are assessed when the customer first gets in touch, and charged leads are reassessed over time; if one is later found to be low quality it may be credited (Automated lead credits). Credits usually reach your balance within 30 days, and the original charge still shows on your invoice.
- Google no longer gives credits for leads about a job type you do not serve or a location you do not serve. Keep your job types and service areas accurate instead.
- Lead credits are not available for health care, tax specialists or advertisers in Europe, the Middle East and Africa.
- Rating a lead with the feedback survey can earn a bonus credit, so rate every lead.
How Local Services Ads ranking works
LSA ranks providers in an auction that weighs your bid together with profile quality and the likelihood of a lead (About ad rankings). Google names these factors:
Your bid is the most you will pay per lead. You may pay less.
Missed calls can hurt your ranking. Average response time may show in your ad.
The service asked for, the time of the search and the searcher's location relative to your service area.
Your listed job types and business bio.
Turning on message and booking leads gives customers more ways to reach you.
Rating, review count, response time, high-quality photos and completed verification checks.
Google also says it balances results for a healthy, varied set of providers, and that if several of your locations serve the same area, only your highest-ranking ad shows for a given search. Reviews come from your Google Business Profile and are managed there, not in the LSA account.
For a step-by-step on improving each factor, read how to optimize Google Local Services Ads.
Budget, bidding and what LSA costs
Google does not publish a standard price per lead. It varies by category, location and lead type. Google's recommendation is the Maximize leads bidding mode, where Google sets bids to get as many leads as possible within your budget; the alternative has been setting a maximum per-lead bid yourself (Improve your performance).
After an account moves into Google Ads (see below), manual per-lead bidding is no longer supported. Weekly budgets become daily averages (the weekly amount divided by 7), and a single campaign-level target cost per lead applies. To set different targets per service, you create separate campaigns, for example one for plumbing and one for HVAC.
LSA ranking leans on reviews and your Google Business Profile. Check how your profile and Maps rank compare with the top three competitors first.
How to set up Local Services Ads
- 01Check eligibilityYour category and area on Google's list
- 02Verify your Business ProfilePublic and verified
- 03Sign upBusiness details, job types, service area, hours
- 04ScreeningLicenses, insurance, background checks for your category
- 05Budget and billingChoose a bidding mode and budget
- 06Go livePre-badge first, then Google Verified
Google says screening takes 3 to 4 weeks on average after documents are submitted.
Before you submit
The 2026 move into Google Ads: what changes
Google is moving Local Services Ads into Google Ads as a self-service experience. Existing campaigns are migrated to Performance Max campaigns with pay-per-lead goals. Google says the pay-per-lead model and placements on Search and Maps stay the same (Google Ads Help).
- August 2026
First phase: select US home and storefront service advertisers, such as plumbing, HVAC, electrical, appliance repair, house cleaning, lawn care, roofing, pest control and moving.
- Late 2026
Service-area businesses without storefronts, and accounts with custom bidding or booking setups.
- 2027
Non-US accounts and all remaining categories.
- Account admins get an email 14 days before migration and a reminder 7 days before. Migration can take up to two weeks to complete.
- Targeted locations, service types, categories, budget limits, schedule and photos carry over. The old LSA dashboard closes and redirects to Google Ads.
- Lead history carries over to a Leads page in Google Ads. Historical performance reports do not, so save screenshots or downloads first.
- Business name, address and hours are managed in Google Business Profile and sync one way into Google Ads.
- Verification and the Google Verified badge carry over. Google says insurance and license reverification are no longer required after migration.
Local Services Ads for businesses with several locations
If you run several branches in one metro, know how LSA treats them. Google says that when several of your locations serve the same area, only your highest-ranking ad shows for a given search. Your locations do not stack up on the same results page; they compete with each other for the slot.
That makes service areas a planning decision. Draw each location's area around the customers it can really serve fast, overlap them as little as practical, and make sure each location's Google Business Profile has its own reviews, photos and accurate hours. Reviews are managed per profile in Google Business Profile, not in the LSA account (Reviews and ratings on LSA).
Report leads, cost per lead and booked jobs per location, not as one total. A location with a low rating or slow answering will drag down the whole program, and you only see it when the numbers are split. For the wider picture across profiles, see how to manage multiple Google Business Profile locations and the multi-location SEO playbook.
Are Local Services Ads right for your business?
- Is your category on Google's LSA list for your area?NoUse Google Search, Maps local ads and your Google Business Profile instead.Yes
- Can you pass the licensing, insurance and background checks for your category?NoFix that first, or run Search ads while you prepare.Yes
- Can someone answer the phone and messages quickly during your listed hours?NoSort out answering first. Missed leads hurt ranking and waste budget.Yes
- Do you have at least 5 genuine Google reviews?NoBuild reviews first. Many categories need 5 to show, and reviews drive ranking.Yes
- Do you mostly want phone calls from nearby customers?NoSearch or Performance Max may fit better if you need website traffic or online sales.YesTest LSA with a modest budget and rate every lead.
Many businesses run LSA alongside Search ads and a strong Google Business Profile, since each appears in a different part of the results page. If you have several locations, our guide to location-based advertising covers how to structure the rest of your local ads, including call-only ads and Performance Max.
Mistakes to avoid
- Listing job types you rarely do
Instead: List only the work you want. Credits for job types you do not serve are no longer given.
- Setting hours longer than you can answer
Instead: Set hours to when the phone is staffed, or add an answering service.
- Ignoring the lead feedback form
Instead: Rate every lead. It feeds quality checks and can earn a bonus credit.
- Starting with too few reviews
Instead: Get to at least 5 genuine reviews on your Google Business Profile before you launch.
- Assuming the old Google Guarantee still covers customers
Instead: The Money Back Guarantee is discontinued. Do not promise it in your sales talk.
Run the rest of your local ads per locationAds by Locus Intelligence runs Google Search, Performance Max, Maps local ads, call-only and Meta campaigns per location, with a tracked number per ad and results reported per location. It does not manage Local Services Ads.
See how Ads by Locus Intelligence works, or start with the free Maps rank checker to see where your profile stands, since both Maps and LSA reward strong reviews and an accurate profile. Our Google Business Profile optimization checklist covers the profile side.
Google Business Profile auditFree. You get a profile score, your Maps rank against the top 3, and the fixes that matter most.
Your next steps
Today
- Check whether your category is on Google's US Local Services Ads list.
- Count your Google reviews and run the free Google Business Profile audit.
This week
- Gather licenses, insurance and registration documents for screening.
- Set business hours to the times someone will really answer the phone.
- If you already run LSA, export 12 months of lead and spend reports before migration.
This month
- Launch with Maximize leads, accurate job types and a broad service area, and rate every lead.
- Compare cost per booked job from LSA with your Google Search ads and decide where the next dollar goes.
Frequently asked questions
How much do Local Services Ads cost?
You pay per lead, and Google does not publish a standard price. It varies by category, location, lead type and bidding mode. You set a budget and Google charges per valid lead.
Is Google Guaranteed still available?
No. Google replaced Google Guaranteed, Google Screened and License verified with one Google Verified badge from October 2025, and discontinued the Money Back Guarantee.
Do I need a Google Business Profile for Local Services Ads?
Yes. Google requires a public, verified Google Business Profile, and your LSA reviews are managed through it.
Can I dispute a Local Services Ads lead?
Google now credits low-quality leads automatically, usually within 30 days. Credits for job types or areas you do not serve are no longer given. Rating leads can earn a bonus credit.
How long does Local Services Ads verification take?
Google says 3 to 4 weeks on average after you submit documents. Pre-badge ads can run in the meantime.
Are Local Services Ads moving to Google Ads?
Yes. From August 2026, accounts are migrating in phases into Google Ads as Performance Max campaigns with pay-per-lead goals, with non-US accounts in 2027.
Does Ads by Locus Intelligence manage Local Services Ads?
No. It runs Search, Performance Max, Maps local ads, call-only and Meta campaigns per location. LSA is managed in your Google account.
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