Google Local Services Ads: costs, rankings and how reviews affect leads

What are Local Services Ads?

They're Google ads built for local service businesses such as plumbers, electricians, cleaners and lawyers. Instead of keywords and clicks, you set up a profile (services, hours, service area), pass Google's screening, and pay for each valid lead.

• Where they show: Google Search and Maps, for searches in the categories and areas you've chosen.
• What customers see: your business name, rating, review count, hours and the Google Verified badge if you have it.
• How you pay: per lead. Google says you “only pay when a customer gets in touch from your ad”.

Google is moving LSAs into the main Google Ads platform as Performance Max campaigns built for pay-per-lead goals. Search Engine Journal reported in July 2026 that migration would start in August 2026 with some US advertisers, followed by other US accounts later in 2026 and non-US accounts, including the UK, in 2027. You still pay per lead, but manual bidding ends and historical reports don't move across, so export yours before your migration date.

Which businesses and countries qualify?

Only certain service categories, in certain countries. Google's getting-started page lists the United States, Canada, the United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, Spain and Switzerland. Australia isn't listed, and we couldn't find a Google page offering LSAs there, so Australian businesses should use Google Ads and the map pack instead.

Other rules from Google's page: review requirements vary by category; some categories are limited to California and Florida; the Google Verified badge isn't available for automotive, beauty or dining; and “pre-badge” ads, which let you get leads before onboarding is finished, rank below fully verified providers and aren't available for garage doors, locksmiths or healthcare. Use Google's eligibility check before you plan around them.

How does Google rank Local Services Ads?

On five things, according to Google's ad rankings page:

Google's reviews page is blunter: “Star ratings and number of reviews affect how your business is ranked within Local Services Ads.” And Google says higher-quality profiles may rank higher “and may also pay lower costs per lead”. Proximity isn't a separate factor on Google's list; location is part of the search context. Your LSA reviews are your Google Business Profile reviews, governed by the same Maps policies, so the habit that helps you in the map pack, a steady flow of recent reviews, also helps here. Our contractor review playbook has the scripts.

How much does a Local Services Ads lead cost?

It depends on your bid, trade, location and the type of lead. Google doesn't publish averages: it says prices vary by “your location, the job type, the type of lead, or your bidding mode”, and that message leads are priced on how likely the customer is to book.

Those figures come from one US agency, 99 Calls, using 5 to 12 of its own client sites per trade, with HVAC based on 12 months of data rather than 3 (it doesn't say which country they advertise in), so treat them as a rough guide, not a market average. What Google charges for: answered calls, messages, voicemails, bookings (US and Canada). From 1 October 2026, Google told some advertisers it would also charge for missed calls during business hours when the caller stays on the line more than 20 seconds, with a few exceptions. Follow-up calls you make to that customer within 15 days are charged only once, Google's Ads Liaison told Search Engine Roundtable.

Local Services Ads vs Google Ads: which is better?

LSAs suit trades that want calls without managing keywords; Google Ads suits businesses that want more control or aren't eligible for LSAs. Many run both.

Search campaigns with your Business Profile linked can also show inside Google Maps; our guide to Google Maps ads covers the formats and costs. Our local ads service runs Google and Meta ads on your own accounts, for local businesses in the US, UK and Australia, with every enquiry tracked.

How do you dispute a bad Local Services Ads lead?

Rate the lead and fill in the feedback survey. Google says it reassesses lead quality over 30 days and credits poor-quality, duplicate or invalid leads automatically, usually within 30 days.

1. In your account, open Leads and choose the lead.
2. Select Rate this lead, then complete the feedback survey.
3. Check your balance for credits over the following weeks.

Limits: Google no longer credits leads for “job type not serviced” or “geo not serviced”, so keep your services and areas exact. Credits aren't available for healthcare, tax specialists or advertisers in EMEA, which includes the UK, so UK advertisers should answer quickly and keep their profile tight to avoid paying for poor leads.

What happened to Google Guaranteed?

It's now Google Verified. Google replaced the Google Guarantee badge with a single Google Verified badge for all Local Services Ads advertisers and discontinued the money-back guarantee that came with it. Customers could only claim reimbursement for services booked before 7 December 2025, within 30 days of the job being finished.

Google's badge page doesn't list a separate fee for the badge: you get it through Local Services Ads and pay for the leads. Pages quoting a monthly “Google Guaranteed” fee or a money-back promise are out of date. If you're looking into Google Guaranteed, Local Services Ads is where the badge now lives, so everything above, from eligibility to lead costs, applies.

Not sure whether LSAs, Google Ads or the free map pack should come first? Get a free audit of your Google profile, reviews and map ranking, and we'll tell you where the next lead is most likely to come from.