Google Local Services Ads are a pay-per-lead ad format that shows verified service businesses prominently in Google Search results when someone looks for a plumber, an electrician, a lawyer or hundreds of other local services. Instead of paying for clicks to a website, you pay when a potential customer calls, messages or books you directly through the ad.
For many small service businesses, that model is easier to budget around than a traditional Search campaign. But Local Services Ads (LSAs) also come with their own rules: a screening process that can take weeks, a badge system that Google overhauled in late 2025, lead credits that now run mostly on automation, and a ranking system that rewards responsiveness and reviews as much as your bid.
This guide explains how local service ads work as of October 2026, what they cost, how the new Google Verified badge replaced Google Guaranteed and Google Screened, and how LSAs compare with regular Google Search ads and Google Maps ads, so you can decide whether they belong in your marketing mix.
What Are Google Local Services Ads?
Local Services Ads are a separate Google ad product built for service providers. In Google’s own words, they let you “advertise your business on Google and receive leads directly from potential customers.” Those leads arrive as phone calls, messages and, in the US and Canada, booking requests. You manage everything in a dedicated Local Services Ads account rather than in a standard Google Ads campaign.
The ads appear in a Local Services unit that Google shows prominently in Search results when people search for the services you offer. Each listing shows your business name, your rating and review count, your verification badge, hours and service area, plus buttons to call, message or book. A searcher can contact you without ever visiting your website, which is a big part of why the format works well on mobile.
Who can advertise with local services ads
LSAs are only available for certain service categories and locations. Google’s Local Services Ads getting started page currently lists availability in the United States, Canada, the United Kingdom, Ireland, France, Germany, Italy, Spain, Austria, Belgium and Switzerland. Category availability differs by country and even by city, so the first step is always to run Google’s eligibility check for your location and trade.
Eligible categories span several groups:
- Home services: plumbers, electricians, HVAC contractors, locksmiths, roofers, cleaners, pest control, garage door and appliance repair, and similar trades.
- Professional services: lawyers across many practice areas, real estate agents, financial planners and tax specialists in supported markets.
- Health and wellness: dentists and other health care providers in supported markets, which have their own license and provider checks.
Google Guaranteed, Google Screened And The New Google Verified Badge
For years, LSAs carried different trust badges depending on the industry. Home service businesses earned the Google Guaranteed badge, which came with a Money Back Guarantee for customers who booked through the ad and were unhappy with the work. Professional services such as law firms, financial planners and real estate agents earned the Google Screened badge instead. Some categories also displayed a License Verified by Google label.
That patchwork is gone. In October 2025 Google began replacing Google Guaranteed, Google Screened and License Verified with a single Google Verified badge for all eligible advertisers. Google also discontinued the Money Back Guarantee that was attached to the Google Guaranteed badge. Customers could still submit reimbursement requests for services booked through Local Services Ads before December 7, 2025, as long as they did so within 30 days of the service being completed. Profiles with the new badge also call out the relevant verifications the business has passed.
What this means in practice for 2026:
- If you see “Google Guaranteed” or “Google Screened” in older marketing material or agency proposals, treat it as the old name for what is now Google Verified.
- There is no longer a Google-backed money-back promise to advertise to customers, so do not mention one in your own sales copy.
- The screening work you do to earn the badge still matters, because completed verification checks feed into ranking and are shown to customers.
- The Google Verified badge is currently unavailable for businesses in auto, beauty and dining categories.
How Screening And Verification Work
Before your ads can run with the Google Verified badge, Google screens the business. The exact checks depend on your category, country and sometimes your state or province, but they fall into a few buckets according to Google’s screening help pages.
| Check | What Google looks at | Who it typically applies to |
|---|---|---|
| Background checks | Business checks, owner checks and checks on service professionals who go into customers’ homes | Varies by vertical; urgent trades such as plumbing, HVAC and locksmiths include service professional checks |
| License verification | State or province level business licenses and owner level licenses where your trade requires them | Licensed trades, lawyers, real estate agents, health care (including NPI verification for US providers) |
| Insurance verification | Proof of general liability and, where relevant, professional liability coverage | Most categories; some, like towing and auto repair, need extra coverage such as garage keepers liability |
| Identity verification | Business owner identity and, in some verticals, fieldworker identity | Select verticals, including lawyers and some wellness categories |
| Business registration | Entity verification and business representative checks | Certain verticals as part of onboarding |
| Reviews | A minimum review profile, depending on category requirements | Most categories |
Google says the process takes three to four weeks on average after you submit your documents. To keep things moving, make sure the business name matches across your license, insurance certificate and profile, that no documents are expired, and that every team member who needs a check completes it promptly.
Pre-badge ads
To shorten the wait, Google now offers pre-badge ads in some categories. Once you pass preliminary checks, such as providing a license or business registration and meeting the review requirements for your category, you can start receiving leads before full onboarding is finished. These ads rank below fully verified providers, and you still need to complete every onboarding requirement to go live with the Google Verified badge.
Google Local Service Ads Cost: The Pay-Per-Lead Model
The core difference between LSAs and most other Google ads is billing. You pay for leads related to your business and the services you offer, not for impressions or clicks. Google does not publish a standard price per lead. What you pay depends on your bid, your category, your market and how many competing providers are bidding for the same lead, so a lead for a personal injury lawyer in a large metro area can cost far more than a lead for house cleaning in a small town.
What counts as a charged lead
According to Google’s help center, charged leads include:
- Messages or emails from customers
- Voicemails and automated engagement, such as appointment scheduling or callbacks
- Answered phone calls with customers
- Missed calls that you return by text, email or voicemail
- Booking requests (US and Canada only)
Budgets and bidding options
You set an average weekly budget based on how many leads you want. Weekly spend can move up or down, but Google will not charge more than your monthly maximum, which is your weekly budget multiplied by the average number of weeks in a month. There are three bidding approaches:
| Bidding option | How it works | Best for |
|---|---|---|
| Maximize leads | Google sets bids automatically to get as many leads as possible within your budget. Google recommends a budget that supports at least 10 leads per week. | Most advertisers, especially new accounts |
| Maximize leads with a target cost per lead | You set a desired average cost per lead and the system adjusts bids to land close to it. Individual leads can cost more or less. | Businesses that know their profitable cost per lead |
| Max per lead (manual) | You set the most you are willing to pay for a single lead. | Advertisers who want strict control over unit cost |
Google notes that results usually take about two weeks to stabilize while the system learns your account, so avoid judging performance or making large bid changes in the first few days.
Lead Credits And Disputes In 2026
Lead quality has always been the biggest complaint about LSAs, and the way Google handles it has shifted toward automation. Leads that Google’s models judge to be invalid or low quality are not charged in the first place. Charged leads are also reassessed over time, and Google may issue credits automatically if a lead is later found to be low quality. In most cases those credits land in your account balance within 30 days, although the original charge still appears on your invoice.
You can flag a bad lead through the feedback survey attached to each lead, and Google’s help center notes that a successfully disputed lead is credited back in the US and Canada. There are important exceptions:
- Lead credits are not available for health care verticals, tax specialists or advertisers in EMEA (Europe, the Middle East and Africa).
- Leads are not credited for “job type not serviced” or “geo not serviced” reasons. Google expects you to fix those by tightening the job types and service areas in your settings.
- Valid leads received outside your business hours, customers asking for advice or researching prices, canceled bookings and customers who do not respond to your follow-up are also not eligible for credit.
The practical lesson is that settings drive lead quality. Only switch on the job types you actually do, keep your service area realistic, and keep your business hours accurate so you are not paying for calls you cannot take.
How Local Services Ads Ranking Works
LSAs run on an auction, but bid alone does not decide who appears first. Google’s ad ranking documentation lists three main groups of factors:
- Your bid: the maximum you are willing to pay for a lead, although you may pay less.
- Likelihood of converting the lead: how responsive you are (missed calls hurt), how relevant you are to the search by service type, time and location, and whether you offer messaging and booking options.
- Profile quality: your rating, number of reviews, average response time, use of high quality images and the verification checks you have completed.
Google also says it optimizes for the overall health and diversity of the LSA ecosystem, so even strong profiles rotate with competitors.
Google Local Services Ads Vs Google Search Ads Vs Google Maps Ads
LSAs are not the only way to reach local customers on Google. Standard Search campaigns and ads on Google Maps (driven by location assets linked to your Google Business Profile) are run from a regular Google Ads account and work very differently. Our guide to advertising on Google Maps covers the Maps side in more depth.
| Feature | Local Services Ads | Google Search ads | Google Maps ads |
|---|---|---|---|
| Where they show | Local Services unit at the top of Google Search results | Search results pages, above and below organic results | Google Maps results and promoted pins, plus local units in Search |
| How you pay | Per lead (call, message or booking) | Per click (CPC) | Per click on actions such as directions, call, website or the pin, with CPM for branded logo pins in Performance Max store goal campaigns |
| Keyword control | None; Google matches you by job type and service area | Full keyword, match type and negative keyword control | Driven by location, campaign settings and assets |
| Screening required | Yes, background, license and insurance checks for the badge | No business screening beyond standard ad policies | No screening; a linked Business Profile or location assets are required |
| Trust signal | Google Verified badge | None beyond ad assets | Ratings from your Business Profile |
| Landing page needed | No | Yes | Optional; many actions happen in Maps |
| Best for | Service area businesses that want phone leads | Businesses that want control over keywords, copy and landing pages | Businesses with a storefront or office that customers visit |
Many service businesses run more than one of these. A common setup is LSAs for high intent phone leads, a Search campaign to capture searches LSAs do not cover and to send traffic to specific service pages, and location assets so the business shows up when people browse Maps. If you do not have the time to manage all three, working with one of the Google Ads management agencies that specialize in small businesses can help you split budget across them sensibly.
How To Get Started With Local Services Ads
- Check eligibility. Use Google’s Local Services Ads sign-up page to confirm your category and service area are supported.
- Create your profile. Add your business details, hours, service areas and the specific job types you handle. Be precise, because these settings control which leads you receive and which ones qualify for credits.
- Gather documents. Have your licenses, insurance certificates and business registration ready, with the business name matching across every document.
- Complete screening. Submit background check information for the business, owners and any field staff your category requires, then plan for roughly three to four weeks of review.
- Build reviews. Meet your category’s review requirements and keep collecting reviews, since rating and review count affect ranking.
- Set budget and bidding. Most new advertisers start with Maximize leads and a weekly budget that supports at least 10 leads, then refine once the account stabilizes.
- Answer every lead fast. Manage leads in the Local Services Ads inbox or app, mark booked jobs, and use the feedback survey on poor leads.
Frequently Asked Questions
What does Google Guaranteed mean?
Google Guaranteed was the badge home service businesses earned after passing Google’s screening, and it came with a Money Back Guarantee for eligible customers. Google replaced it with the Google Verified badge starting in October 2025 and discontinued the Money Back Guarantee, with final claims limited to services booked before December 7, 2025. If you still see the term, it refers to the older program.
How much does Google Guaranteed cost?
There was never a separate fee for the badge itself, and the same is true of Google Verified. Your cost is what you pay per lead through Local Services Ads, which depends on your bid, category and market. Some background checks or license requirements may involve your own time and paperwork, so budget for that as well.
How do I get Google Guaranteed?
You can no longer earn the Google Guaranteed badge because it has been retired. The current equivalent is the Google Verified badge, which you earn by signing up for Local Services Ads in an eligible category and passing the required background, license, insurance and review checks. Google says this usually takes three to four weeks after you submit your documents.
Are Google local service ads worth it?
They are often worth testing for service area businesses that win work by phone, because you only pay for leads and the ads appear prominently in Search results. They are less suitable if you need control over keywords and landing pages, if your category is not eligible, or if you cannot answer calls quickly. Track booked jobs per lead, not just lead volume, to judge the return.
How do you optimize Google local service ads?
Respond to calls and messages as fast as possible, since missed calls and slow responses hurt ranking. Keep job types and service areas tight, keep business hours accurate, add high quality photos and keep collecting reviews. Give automated bidding about two weeks to stabilize before making large changes.
Conclusion
Google local services ads give eligible service businesses a direct line to customers who are ready to hire, with billing tied to leads instead of clicks. The trade-offs are a screening process that takes weeks, limited control over targeting, and a ranking system that rewards fast responses and strong reviews as much as budget. The switch to a single Google Verified badge and the end of the Money Back Guarantee make the program simpler to explain, but they also mean your own reputation carries more weight.
If your category is eligible, start with accurate job types and service areas, a budget that supports steady lead flow and a plan to answer every lead quickly. Then compare cost per booked job against your Search and Maps campaigns to decide how much of your local budget LSAs deserve.
