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Why Google’s Local Services Ads Are Changing the Game

  • James Drake
  • Aug 2
  • 3 min read

Updated: Aug 3


Introduction: Why LSAs Dominate in 2025



If you’ve searched for a plumber, HVAC company, or electrician on Google recently, you’ve probably noticed the big “Google Guaranteed” boxes at the top of the search results. These are Google’s Local Services Ads (LSAs), and they’re completely changing how homeowners find and hire service providers.


For home service business owners, LSAs can be a powerful lead-generation engine—if you know how to use them correctly. Unlike traditional pay-per-click (PPC) ads, LSAs are pay-per-lead, and they come with built-in credibility that customers trust.


In this article, we’ll break down what LSAs are, why they convert so well, and how you can get started without blowing your budget.


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What Are Local Services Ads (LSAs)?


LSAs are Google’s way of connecting homeowners with local service professionals. They appear above traditional Google Ads and organic search results, making them prime real estate.


Here’s what makes them unique:


  • Pay-per-lead, not pay-per-click: You only pay when someone calls you or messages you through the ad.

  • Google Guaranteed badge: After a background check and license verification, your business can display a badge that says “Google Guaranteed,” building instant trust.

  • Prominent placement: LSAs often show up as the very first thing people see on desktop and mobile.


Why LSAs Convert Better Than Traditional PPC


Homeowners trust Google. When they see the “Google Guaranteed” badge next to your business name, it signals credibility. According to a Wordstream report, LSAs convert up to 30% better than standard PPC ads for local service industries.


Another advantage: LSAs filter out many unqualified leads. You can specify the services you offer, your service area, and even your business hours. Leads that come through LSAs are often ready to book.


The Verification Process (and Why It Matters)


To run LSAs, you’ll need to go through Google’s verification process:


  1. Business license check: Google verifies your license is current.

  2. Background checks: Owners and some employees must pass a background check through a third-party provider.

  3. Insurance verification: You may need to submit proof of insurance.


This process may feel tedious, but it’s worth it. The “Google Guaranteed” badge can be the deciding factor when a homeowner is comparing you to a competitor.


How LSAs Charge and How to Control Costs


Unlike PPC campaigns where every click costs you money (even if the user never calls), LSAs charge only when a lead contacts you through the platform. You can set a weekly budget and adjust it at any time.


  • Leads typically cost $25–$60 depending on your service category and market.

  • Google lets you dispute leads that aren’t valid (e.g., out-of-area customers or services you don’t offer).


Pro Tip: Start with a modest weekly budget ($200–$300). Track the quality of leads before scaling up.


Optimizing Your LSAs for Better Results


To get the most out of LSAs, you need to actively manage them:


  1. Keep your profile complete and updated: Add photos, services offered, service area, and accurate hours.

  2. Respond to leads quickly: Google tracks your responsiveness. Faster responses = better ad placement.

  3. Get more reviews: Reviews influence where your LSAs appear. Implement a review request system.

  4. Update your availability: If you can’t take calls on weekends, make sure your ad reflects that.


Common Mistakes to Avoid


  • Ignoring reviews: Businesses with better reviews will outrank you in LSAs, even if you spend more.

  • Setting and forgetting: LSAs require monitoring. Adjust your service area and budget as you learn what works.

  • Not disputing bad leads: Google won’t refund unqualified leads unless you dispute them.


Case Study: A Roofing Company That Scaled with LSAs


A Denver-based roofing company started using LSAs with a $500 weekly budget. Within 60 days, they received 45 qualified leads at an average cost of $36 per lead. By disputing invalid leads and requesting reviews from every satisfied customer, their ad consistently ranked in the top three results. LSAs now generate over 60% of their booked jobs.


How to Get Started with LSAs


  1. Visit Google’s Local Services Ads portal: https://ads.google.com/local-services-ads/.

  2. Set up your profile and submit documents for verification.

  3. Define your service area, job types, and weekly budget.

  4. Request reviews from past customers to build credibility fast.


The Bottom Line


LSAs aren’t a magic bullet, but they’re one of the most effective ways to generate high-quality leads in the home services industry right now. Because they appear above traditional ads and organic search results, they level the playing field for smaller businesses that don’t yet rank organically.


If you’re tired of unpredictable referrals and want more control over your lead flow, LSAs are a smart next step.


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