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Everything You Need To Know About Google’s Local Services Ads

google local service ads

Local businesses aren’t out of the race in the digital age as they struggle to be evident in a cluttered digital marketplace. Google’s Local Service Ads (LSAs) is a perfect tool, which Google’s team has created to reach local service providers in their communities using targeted advertising.

Google LSAs deviate from the standard Google Ads approach of targeting keywords and clicks by promoting trust and locality. Thus, these ads allow the business to be visible and seen by its desired customers in the local area.

What Are Google’s Local Services Ads?

Google’s Local Services Ads is a powerful advertising platform created for local businesses. Unlike traditional Google Ads, which appear in search results based on keywords, LSAs are shown to users based on their location and the services they’re searching for. 

It means that when someone in your area is looking for a service you offer, your LSA appears at the top of Google’s search results, above even the paid ads.

How Google’s Local Services Ads Works?

Google’s Local Services ads (LSAs) are a form of ad that is tailored for local services that include things like plumbing, locksmithing, and air conditioning, among others.

These ads come at the top of Google’s search results, above the traditionally paid-for Google Ads (pay-per-click ads) and the organic search results, making them visible to many potential customers.

Here’s an overview of how Google’s Local Services Ads work:

Eligibility and Setup:

Service Categories: 

Businesses must fit into certain service categories to be eligible. Google continues to expand the categories that qualify for LSAs.

Google My Business: 

Usually, businesses need an active Google My Business account to participate. Businesses must apply for Local Services Ads, providing details about their services, service area, and business hours.

Background Checks and Licensing:

Google requires background checks for the business and its employees, as well as verification of licenses and insurance, depending on the service category and location. This process ensures that the businesses meet Google’s standards for quality and safety.

Ad Creation:

Unlike traditional ads, LSAs don’t require businesses to create ad text. Instead, Google generates the ad based on the information provided during setup. The ad typically includes the business name, services offered, service area, ratings, and reviews.


Ads are ranked based on various factors, including review score, responsiveness to customer inquiries and requests, proximity to the searcher’s location, and business hours.


Businesses pay for leads rather than clicks. A lead can be a phone call or message initiated through the ad. It means businesses only pay when a potential customer contacts them directly through the ad.

Budget and Bidding:

Businesses set a weekly budget for how much they are willing to spend on leads. Google then shows the ads based on this budget, the bid for leads, and the factors affecting ranking.

Management and Optimisation:

Businesses manage their LSAs through a dedicated dashboard or the Google Home Services Ads app, where they can track leads, listen to call recordings (for quality and training purposes), and dispute charges for invalid leads. Encouraging satisfied customers to leave positive reviews can improve ad ranking and visibility.

Google Guarantee:

Eligible businesses get a “Google Guaranteed” badge, offering customers peace of mind by providing a refund of up to a certain amount if they’re not satisfied with the quality of the service. It is a powerful trust signal that can enhance the attractiveness of the ad.

Performance Tracking:

Google provides a dashboard where businesses can track ad performance, including the number of leads received, budget spent, and customer reviews. This data helps businesses to refine their strategies and improve ROI.

What Are Some Key Features and Benefits Of Google’s Local Services Ads?


Unlike traditional pay-per-click (PPC) advertising models, where businesses pay for every click their ad receives, Local service ads operate on a pay-per-lead basis. Businesses only pay when they receive a direct contact from a potential customer, such as a phone call or message, through the ad.

Google Guarantee: 

Businesses that pass Google’s screening and qualification process are awarded a Google Guarantee badge, which appears on their ad. This badge offers customers peace of mind by assuring them that Google backs the services provided.

Local Relevance: 

Ads are shown to users based on their location and the specific services they search for, ensuring that businesses are visible to the most relevant audience. This local targeting helps businesses connect with potential customers in their service area.

Ranking Factors: 

The ranking of Local service ads is determined by a variety of factors, including the service provider’s proximity to the user’s location, their review score and the number of reviews, their responsiveness to customer inquiries, and the business hours they offer.

Easy to Use: 

The platform is designed to be user-friendly for businesses. They can set a budget based on the number of leads they want to receive and can pause their ads at any time. This flexibility allows for easy management of advertising expenses.

Direct Communication: 

Potential customers can contact service providers directly through the ad by calling or sending a message. This direct form of communication helps in quickly converting leads into customers.

Transparent Reporting: 

Google provides businesses with detailed reports and insights on how their ads are performing, including information on the number of leads generated. This data helps businesses understand their return on investment and optimise their advertising strategy.

5 Ways Google Local Service Ads are Different Than Google Ads

In digital advertising, Google provides companies looking to improve their online presence with a wide range of tools. Among these, Google Ads and Local Service Ads (LSAs) are frequently used to connect with potential clients. 

Despite their initial similarities, the two are very different from one another. Comprehending these discrepancies is imperative for companies looking to maximise their advertising tactics.

Targeting Approach:

Google Local Service Ads are specifically designed to target local customers in need of particular services. These ads appear at the top when users search for services in their vicinity, ensuring maximum visibility for local businesses. 

On the other hand, Google Ads operate on a broader scale, targeting users based on keywords and demographics rather than geographic proximity.

Verification Process:

Businesses must undergo a rigorous verification process to confirm their legitimacy and reliability. This verification includes background checks, licensing confirmation, and insurance verification, instilling trust and confidence in potential customers. 

Conversely, Google Ads do not require such extensive verification, allowing businesses to advertise with fewer barriers to entry.

Pay-Per-Lead Model:

Unlike Google Ads, which typically operate on a pay-per-click (PPC) model, Google Local Service Ads utilise a pay-per-lead model. It means that businesses only pay when a lead is generated directly through the ad, such as when a user contacts the business directly from the ad. 

This pricing model offers a more cost-effective approach for businesses, as they only pay for tangible leads rather than clicks that may not result in conversions.

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Placement and Visibility:

Google Local Service Ads enjoy prime placement in search results, appearing above traditional Google Ads and organic listings. This prominent positioning increases the likelihood of users clicking on the ad, thereby driving more qualified leads to local businesses. 

In contrast, Google Ads may appear on the search results page in various locations, depending on factors such as bidding strategy and ad relevance.

Review Emphasis:

Reviews play a significant role in Google Local Service Ads, with businesses’ ratings prominently displayed alongside their ads. Positive reviews can significantly impact a business’s visibility and credibility, encouraging users to choose them over competitors. 

While reviews also influence Google Ads’ performance to some extent, they are not as prominently featured in Local Service Ads.

Google Ads vs. Google Local Services Ads: Which One To Choose?

For Local Services: If you’re a local service business looking to generate leads (e.g., home repair, legal services), Google Local Services Ads could be more beneficial due to their pay-per-lead model and local focus.

For Broader Reach or E-commerce: If your goal is to reach a wider audience, drive traffic to your website, or sell products online, Google Ads might be more suitable due to its extensive reach, variety of ad formats, and detailed targeting options.

Also read SEO for E-commerce


Google’s Local Services Ads represent a paradigm shift in online advertising, offering local businesses a powerful platform to enhance their visibility, attract qualified leads, and drive business growth. 

Consider hiring Digiligo, a full-service digital marketing agency offering specialised services for Google Local Services Ads (LSAs). With our expertise in LSAs, we can help your business maximise its online visibility, attract targeted leads, and drive growth within your local community. 

Our full-service approach ensures that every aspect of your LSAs campaign is meticulously managed, from initial setup to ongoing optimisation. 

Partner with Digiligo to unleash the full potential of Google Local Services Ads and propel your business to new heights.

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