That is the idea behind Local Services Ads. Instead of paying for clicks, you pay for leads, and a verified badge shows customers that Google checked your business. For many service companies that is a trade worth considering.
This guide explains whether Local Services Ads are worth it, how they work and what they cost. We use Google's own pages, the Local Services Ads site and the Local Services Ads Help Center, so you can check the details. It applies to eligible trades in all 50 states and across Canada.
- You pay per lead, not per click
- A Google verification badge builds trust
- Answering fast and strong reviews decide results
- They work best alongside your profile and SEO
Illustration of placement.
What are Local Services Ads?
Local Services Ads are Google ads that show a verified badge and charge you per lead.
They appear at the very top of the page for many service searches, above the map and above regular ads. Customers can call or message you from the ad. Google checks your business, license and insurance before showing the badge, which builds trust.
Because you pay per lead, you are not charged for clicks that do not become calls.
How Local Services Ads for contractors work
Your ad appears at the top of the page. A customer taps to call or message you, and Google bills you for that lead. Because the ad is tied to your profile, reviews and fast answers matter a great deal.
- Business verification
- License where required
- Insurance where required
- Background checks where required
Requirements vary by trade and place.
How much Local Services Ads cost
Local Services Ads charge per lead, and the price per lead varies by trade and market.
Google sets the price per lead using your trade, your area and the competition. You set a budget and Google bills the leads it sends. Leads that are not genuine can often be disputed for credit.
See Local Services Ads management.
- Pay per lead, not per click
- Price varies by trade and market
- You can dispute leads that do not qualify
- Management is separate from what Google bills
Local Services Ads cost and how to dispute leads
The price per lead depends on your trade and location. If a lead is not genuine, you can often dispute it for a credit, as described in Google's Help Center.
Stuck on local services ads? Ask our team.
Ask our teamLocal Services Ads compared with Google Ads
Local Services Ads suit contractors who want leads and a trust badge, while Google Ads give more control over keywords and pages.
Google Ads let you choose keywords, write ads and send customers to a page. Local Services Ads are simpler and tied to your Google profile and reviews. Many contractors use both, because they appear in different places. See how much Google Ads cost.
Local Services Ads rely heavily on your reviews and your response speed. A strong profile helps them perform.
Local Services Ads versus Google Ads for contractors
Search ads give you more control over words and pages. Local Services Ads are simpler and show a verified badge. Many companies use both because they show in different places.
Google Ads
- You choose keywords
- Pay per click
- Send people to a page
Local Services Ads
- Verified badge
- Pay per lead
- Tied to your profile
LSA vs Google Ads side by side
| Local Services Ads | Google Ads | |
|---|---|---|
| You pay for | Each lead | Each click |
| Badge | Verified badge | None |
| Control over keywords | Limited | Full |
| Depends heavily on | Reviews and response speed | Ads and landing pages |
When Local Services Ads are worth it
Local Services Ads are worth it when you answer every lead, your reviews are strong and a booked job pays well beyond the lead cost.
If your average job is worth far more than a lead costs, and you can answer fast, they can be an efficient source. If your phone goes unanswered or your reviews are thin, results suffer.
Judge them by jobs booked and profit, not by lead count. Our maximum cost per lead calculator helps you set the ceiling.
Test them with a clear budget and measure booked jobs.
How to get started with Local Services Ads
To get started, check eligibility, create your profile, pass Google's verification, set your budget and service areas, and answer every lead.
Start with an accurate business profile and reviews. Submit your license and insurance where required, complete any background checks and set service areas and job types carefully.
Then track every lead and dispute those that do not qualify. We handle the setup and care for you.
Conclusion: are Local Services Ads worth it for you?
They are worth testing if you answer every lead, have strong reviews and book jobs worth well more than the lead cost. Measure booked jobs, not lead counts.
Our guide on how much Google Ads cost helps you compare the math.
For more background, see the Google Ads Help Center, the Business Profile Help Center and the Better Business Bureau.