Pay-per-lead ads that appear above standard Google Ads for local-intent service queries. You pay only when someone calls or messages you — not for clicks.
**What LSA is:** a separate Google ads product (different from regular Google Ads / Search) for local service businesses. The ads show up at the top of search results for queries like "plumber near me" or "HVAC repair Toronto" — above both regular Google Ads and the local pack map results.
**How they're different from regular Google Ads:**
| | Local Services Ads | Google Search Ads | |---|---|---| | Pricing | Per qualified lead ($25–$150+) | Per click ($2–$80) | | Placement | Top of page, above everything | Below LSA, above organic | | Setup | Background check + license verification required | Self-serve, instant | | Format | Photo + name + reviews + Google Guarantee badge | Text-only headline + description | | Eligibility | Service businesses only (limited categories) | Any business | | Budget control | Weekly lead budget | Daily click budget + bidding |
**Categories currently eligible for LSA (2026, North America):** plumbers, electricians, HVAC, roofers, locksmiths, garage door, lawyers, real estate agents, financial planners, immigration services, tutors, pet groomers, house cleaners, movers, pest control, junk removal, landscapers, photographers, and ~50 others. List expands annually.
**The Google Guarantee badge** — green checkmark next to your LSA listing — signals Google has verified your license and insurance, and offers customers a $2,000 lifetime money-back guarantee if work is unsatisfactory. This badge measurably increases conversion rate over non-badged competitors.
**Why it works for some businesses and not others:**
**Works well when:** average job value is $300+, your local market has decent search demand, you can answer the phone fast (response time affects ranking), and your reviews are strong (4.5+ with 50+ reviews ideal).
**Works poorly when:** average job value is under $200 (lead costs eat the margin), your category is saturated in your city (lead costs spike), or you can't answer calls within 30 seconds (lead converts to competitor).
**Common mistakes:** disputing valid leads (Google penalizes excessive disputes), ignoring messages (silent lead = wasted spend), and not optimizing the profile photo + bio (these affect CTR like organic listings do).
- **How much do Google Local Services Ads cost?** — Per-lead pricing typically $25–$150 in most US markets, $20–$120 in Canada. Higher in major metros and saturated categories (legal, real estate can hit $300+). - **Should I use Yelp Ads for my service business?** — Mixed answer — Yelp Ads work well in specific categories and metros (especially restaurants, beauty, local entertainment in major US cities) and poorly in most others. - **How do I rank #1 in Google Maps?** — Optimize your Google Business Profile for relevance (correct categories), distance (define accurate service areas), and prominence (review velocity + citations + GBP posts). - **What is the Google Guarantee badge?** — A green-checkmark badge on Local Services Ads listings showing Google has verified your license + insurance and will refund customers up to $2,000 if work is unsatisfactory.