Google Local Services Ads (LSA): A Complete Guide for Local Business Growth

In today’s digital-first world, local businesses must use every available tool to stand out in a competitive landscape. One of the most effective tools introduced by Google is Local Services Ads (LSAs)—a game-changer for local businesses looking to increase visibility and attract high-intent customers. LSAs provide an excellent opportunity to appear at the top of Google Search when potential customers are actively looking for the services you offer.

This blog explores what Google Local Services Ads are, how they work, their benefits, the setup process, and how they differ from traditional Google Ads.

What Are Google Local Services Ads?

Google Local Services Ads (LSAs) are a type of paid advertising designed specifically for local service-based businesses. These ads appear at the very top of Google Search results, even above traditional Google Ads and organic listings, when users search for services in their area (e.g., “plumber near me” or “electrician in [city]”).

LSAs show your business name, reviews, ratings, hours, and a “Google Guaranteed” badge, which builds trust and increases click-through rates. Unlike pay-per-click (PPC) ads, LSAs operate on a pay-per-lead basis, meaning you only pay when a customer contacts you directly through the ad — not for every click.

Who Can Use Google Local Services Ads?

LSAs are available for specific industries and service categories. These include, but are not limited to:

• Plumbers
• Electricians
• HVAC services
• Locksmiths
• House cleaning services
• Movers
• Pest control
• Real estate agents
• Lawyers
• Financial planners
• Pet groomers
• Roofers

Availability varies by region and country, and Google continues to expand supported industries and locations.

How Do Local Services Ads Work?

Here’s how LSAs work from both a business and customer perspective:

For Customers:

1. A user searches for a local service (e.g., “AC repair in Chicago”).
2. Google displays a section of LSAs at the top of the search results.
3. The ad shows your business name, review rating, location, and verification badge.
4. The customer can click to call or message you directly.
5. If the customer contacts you, you’re charged (pay-per-lead model).

For Businesses:

1. You create a profile, set your service areas, business hours, and the types of jobs you want.
2. You define a weekly budget based on how many leads you want.
3. You get leads directly via phone calls or messages through your LSA dashboard.
4. You can respond to leads, dispute bad ones, and pause or adjust your campaigns anytime.

Benefits of Google Local Services Ads

1. Top Placement on Search Results LSAs appear above Google Ads and organic listings. This prime placement dramatically increases visibility and improves your chances of being contacted.
2. Pay-Per-Lead Model Unlike traditional PPC ads, where you pay per click (which may not convert), LSAs charge only when someone directly contacts you through the ad. This makes your marketing budget more efficient.
3. “Google Guaranteed” Badge When your business passes Google’s background checks and verification, you earn the Google Guaranteed badge. This badge builds customer trust and confidence, which often leads to higher conversion rates.
4. Lead Management Tools LSAs come with a dedicated dashboard that allows you to manage leads, track performance, respond to messages, and even dispute irrelevant leads — giving you full control over your advertising efforts.
5. High-Intent Audience People searching for local services on Google usually have immediate intent to hire. LSAs allow you to reach these potential customers right when they need your service most.
6. Positive Reviews Boost Visibility LSAs prominently display your Google reviews and ratings, which influence whether potential customers choose your business over competitors.

Google Guaranteed vs. Google Screened

When setting up LSAs, you may come across two types of verification:

• Google Guaranteed: For home services and professional businesses (e.g., plumbers, cleaners, locksmiths). Google guarantees the job up to a certain amount if customers are unsatisfied.
• Google Screened: For professional services such as lawyers, financial planners, or real estate agents. It doesn’t come with a monetary guarantee but shows you’ve been verified and background-checked.

How to Set Up Google Local Services Ads

Setting up LSAs is relatively straightforward:

Step 1: Check Eligibility

Visit the Google Local Services Ads signup page and check whether your business category and location are eligible.

Step 2: Create a Business Profile

Provide key business information:

• Business name
• Phone number
• Service areas
• Business hours
• Service types
• License and insurance details (if required)

Step 3: Pass Background Checks

Depending on your industry, Google may conduct background checks through a third-party partner. You’ll need to provide documentation, licenses, and proof of insurance.

Step 4: Get Reviews

To increase your ranking and competitiveness, encourage your existing customers to leave positive reviews on your Google Business Profile.

Step 5: Set Budget

Set your weekly lead budget. Google will estimate how many leads you can expect based on your budget and competition in your area.

Step 6: Launch Ads

Once your profile is verified and approved, your Local Services Ads will go live and start appearing on relevant Google searches.

Tips for Success with LSAs

• Respond Quickly: Fast response time increases your chances of converting leads and improves your ad ranking.
• Encourage Reviews: More positive reviews can improve visibility and trustworthiness.
• Dispute Invalid Leads: Not every lead will be relevant. Google allows you to dispute and request refunds for leads that are spammy or outside your service area.
• Use Call Recording & Messaging: Monitor the quality of your leads and improve customer interactions.