Search "plumber near me" or "roof repair" in most US cities and the first thing you see isn't a normal ad. It's a row of local businesses with star ratings and a badge, and you can call one straight from the results. Those are Google Local Services Ads, and for many service businesses they're the most visible spot on the page.
They also changed a lot in the past year. Here's how they work now.
What Local Services Ads Are
Local Services Ads (LSA) are Google ads built for service businesses: home services like plumbing, HVAC, roofing and cleaning, plus professional services like lawyers and financial planners in eligible categories. They show at the top of Google Search and in Google Maps.
The key difference from regular Google Ads:
- You pay per lead, not per click. A lead is a call, message or booking request from a potential customer.
- There are no keywords. You choose your service categories, job types and service area, and Google matches you to searches.
- You must be verified. Google screens the business before your ads run.
The Google Verified Badge
Since October 2025, Local Services Ads carry a single Google Verified badge. It replaced the older Google Guaranteed, Google Screened and License Verified by Google badges, and the money-back guarantee that came with Google Guaranteed was discontinued.
Depending on your category and location, verification can include background checks, license checks and insurance checks. The badge tells searchers you've passed those checks, which is exactly why these ads attract calls.
How Google Ranks Local Services Ads
Google's own help pages list what decides who shows up first:
- 1
Your bid
The most you're willing to pay for a lead.
- 2
Likelihood of a lead
How likely your ad is to produce a lead for this search.
- 3
Responsiveness
How quickly and reliably you answer calls and messages. Missed calls can hurt your ranking.
- 4
Profile quality
Your rating, number of reviews, average response time and use of good photos.
- 5
Relevance and context
How well your services and bio match the search, the time and the location.
- 6
Verification
The checks you've completed.
Two of those you control every day: answering the phone and earning reviews. Since July 2025, reviews for Local Services Ads businesses are managed through your Google Business Profile, so your profile and your ads now share the same reputation.
Answer every lead fast
If you can't pick up during jobs, set up call forwarding to someone who can, or an automatic text back for missed calls. Responsiveness is a ranking factor, and slow replies also lose the customer to the next business in the list.
How Leads and Credits Work
30 days
for most automatic lead credits to reach your balance
Source: Google Local Services Help, About automated lead credits
15 days
window where repeat contacts from the same customer aren't charged again
Source: Google Local Services Help, How leads work
Aug 2026
start of the move into Google Ads Performance Max
Source: Google Ads Help, Local Services Ads transition
Google assesses each lead and doesn't charge for leads it judges invalid or low quality. Charged leads keep being reviewed, and Google credits them automatically if they turn out to be invalid. Manual disputes were replaced by this automated system, and Google no longer credits leads for job types or areas you don't serve. So keep your job types and service area accurate: a wrong setting now costs you real money.
Paying for leads you can't use?
We'll review your Local Services Ads setup, job types and service area, and show you where budget is leaking.
The Big 2026 Change: Performance Max With Pay-Per-Lead Goals
Google is moving Local Services Ads into Google Ads as a specialized Performance Max campaign type with pay-per-lead goals. According to Google:
- August 2026: first phase, for select US home and storefront service advertisers such as plumbing, HVAC and roofing.
- Late 2026: broader groups, including service-area businesses without storefronts.
- 2027: non-US accounts and remaining categories.
What stays the same: you still pay only for valid leads, ads appear in the same places on Search and Maps, targeting still uses service categories and areas, and your verified status and badge transfer automatically.
What you need to do:
Before and after your migration
- Download your Local Services Ads performance reports now. They won't carry over to Google Ads.
- After the move, check budgets, bidding, service areas and schedules in Google Ads.
- Edit your name, address and hours in Google Business Profile, which syncs into Google Ads.
- Replace manual bidding: it's being removed. Use separate campaigns if you need different bids per service.
- Confirm at least one person still gets lead notification emails.
- Allow up to two weeks for the migration to finish.
Local Services Ads vs Google Search Ads
You pay for
- Local Services Ads
- Leads (calls, messages, bookings)
- Google search ads
- Clicks
Targeting
- Local Services Ads
- Service categories and area
- Google search ads
- Keywords, location, schedule
Where people land
- Local Services Ads
- Your Google profile, then call or message
- Google search ads
- Your website or landing page
Trust signal
- Local Services Ads
- Google Verified badge, reviews
- Google search ads
- Your ad copy and site
Control
- Local Services Ads
- Simple, fewer settings
- Google search ads
- Detailed: keywords, negatives, tests
Best for
- Local Services Ads
- Ready-to-call local customers
- Google search ads
- Specific services, higher-value jobs, testing offers
| Local Services Ads | Google search ads | |
|---|---|---|
| You pay for | Leads (calls, messages, bookings) | Clicks |
| Targeting | Service categories and area | Keywords, location, schedule |
| Where people land | Your Google profile, then call or message | Your website or landing page |
| Trust signal | Google Verified badge, reviews | Your ad copy and site |
| Control | Simple, fewer settings | Detailed: keywords, negatives, tests |
| Best for | Ready-to-call local customers | Specific services, higher-value jobs, testing offers |
For most service businesses, the answer isn't either-or. Local Services Ads catch people ready to call right now. Search ads let you target specific, high-value jobs (like "roof replacement" rather than "roof repair") and send them to a page built to convert.
The Bottom Line
Local Services Ads are still one of the best ways for a local service business to get calls from Google: pay per lead, a Google Verified badge, and a spot at the top of the page. Win them by answering fast, earning reviews and keeping your job types accurate, and get ready for the move into Performance Max by saving your reports. Our PPC and Google Ads management covers Local Services Ads and search campaigns together, starting from $399 a month. Roofers can also read our SEO playbook for roofers to win the organic results below the ads. We include Local Services Ads in our marketing plans for plumbers, HVAC companies, and roofers.
