Google Ads · Local Services Ads
Local Services Ads charge for leads and sit at the top of local results. Search ads charge for clicks and give you far more control. Many service businesses need both.
LSA: pay per lead, verified badge
Search ads: pay per click, full control
Eligibility depends on category and location
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Local Services Ads (LSA) are pay-per-lead listings for verified local service providers. They appear at the top of Google results in the areas you choose, show a Google Verified badge, and charge you when a customer calls, messages or books through the ad. Google Ads search campaigns charge per click, let you pick keywords, write your own ads and send people to your own landing pages.
If your business is in an eligible category, LSA is often the simplest way to get phone leads at a known cost per lead. Search ads give more control and reach more services and searches. For many home service, legal and local health businesses the strongest setup is both, each tracked separately.
LSA: per valid lead (call, message, voicemail or booking). Search ads: per click, whether or not the visitor contacts you.
LSA: you set services, service area, hours and budget; Google writes the listing. Search ads: you choose keywords, match types, ad copy and landing pages.
LSA appears at the top of local results for eligible searches. Search ads appear in the ad slots on Google results.
LSA requires Google’s screening and verification before ads run. Search ads can run as soon as the account, ads and billing are approved.
Lead prices in LSA vary by location, job type, lead type and bidding mode, according to Google. Search click prices vary by keyword and competition. Neither has a fixed rate card, so compare on cost per booked job.
Starting in October 2025, Google replaced its older LSA badges, including Google Guaranteed, Google Screened and License Verified by Google, with a single Google Verified badge, according to Search Engine Journal’s report of Google’s announcement. The change also replaced the money back guarantee program that came with Google Guaranteed. Customers can tap or hover over the badge to see which checks a business has passed.
To keep the badge, businesses need to keep their documentation, licensing and other requirements current. Google says its screening includes checks on business registration and identity; depending on the category and location, licenses, insurance and background checks can also be required.
LSA is available only for certain categories. Google’s LSA page groups eligible businesses under home, business, health, learning, care, wellness, beauty and automotive services, with examples such as electricians, plumbers, dentists and optometrists. Google also lists professional services such as personal injury lawyers, real estate agents and tax specialists. Availability varies by category and location, and it changes, so check your category and city on Google’s sign-up page.
If your service is not eligible, search campaigns are your main paid option on Google.
According to Google’s LSA help, as of 2026:
Google notes that lead credits are not available for health care categories and tax specialists. Answer every call during the hours you list: missed calls during business hours can still be charged, and how responsive you are affects how useful the leads become.
Book a free 30-minute call. We look at your category, market and current ads and tell you what we would change first. No obligation. Pick a time.
Local Services Ads
Search ads
Reviews feed both: our guide to getting more Google reviews helps either way, and contractors should also see local SEO for contractors.
Google does not publish a ranking formula on its LSA page, so focus on what you control: responsiveness, reviews, an accurate profile and a budget that does not run out early in the month. When running search ads alongside LSA, use search ads for the services and areas LSA does not cover well, and track calls from each separately so you do not double count the same customer.
With LSA you set a budget and pay per valid lead, and Google says that when you reach your monthly maximum your ad stops showing for the rest of the month unless you raise it. With search ads you set a daily budget and pay per click. In both cases, judge results by booked jobs. Keep a simple record of which leads became paying customers, by channel, so budget decisions are based on revenue rather than lead counts.
JLB USA has done marketing for growing businesses for more than 15 years, with 500+ clients and 1,000+ projects. Our Google Ads management is adjusted weekly, with reporting on cost per lead across campaigns, so you can see which channel brings jobs, not just calls.
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Local Services Ads charge per lead and show a Google Verified badge at the top of local results. Standard Google Ads search campaigns charge per click and let you choose keywords, write ads and use your own landing pages.
No. Starting in October 2025, Google replaced its older Local Services Ads badges, including Google Guaranteed, with a single Google Verified badge, which also replaced the old money back guarantee program.
There is no fixed price. Google says lead prices vary by location, job type, lead type and bidding mode. You set a budget and pay per valid lead.
Google reassesses charged leads for 30 days and may automatically credit poor-quality, duplicate or invalid ones. You can also give feedback on leads. Credits are not available for health care categories and tax specialists.
Often, yes, if you are eligible. LSA covers core phone leads and search ads cover other services, areas and searches. Track each separately and compare cost per booked job.
