Google Local Services Ads: Complete LSA Setup Guide

If you run a local service business, you've probably noticed that the top of Google search results looks different for queries like "plumber near me" or "divorce lawyer in Chicago." Those prominent listings with green checkmarks and star ratings aren't traditional Google Ads—they're Local Services Ads (LSAs), and they represent one of the most cost-effective ways for service businesses to acquire new customers in 2026.

Unlike standard Google Ads where you pay every time someone clicks your ad, LSAs operate on a pay-per-lead model. You only pay when a potential customer actually contacts your business through the ad, whether by phone call, message, or booking request. This fundamental difference makes LSAs particularly attractive for businesses where customer acquisition costs matter and where phone calls often convert better than website visits.

What Are Google Local Services Ads?

Google Local Services Ads are premium placements that appear at the very top of search results for local service queries—above traditional paid search ads, above the local pack, and above organic results. They feature your business name, Google review rating, years in business, operating hours, and either a Google Guaranteed or Google Screened badge that signals trustworthiness to potential customers.

The positioning alone makes LSAs valuable. When someone searches for "emergency plumber" at 2 AM, the LSA results are the first thing they see. But what truly differentiates LSAs is the trust factor. The verification badges tell customers that Google has vetted your business, checked your insurance and licenses, and in the case of Google Guaranteed, stands behind the quality of your work with a money-back guarantee.

How LSAs differ from traditional Search Ads

For local service businesses, the combination of prime positioning, trust badges, and pay-per-lead pricing often delivers better ROI than traditional search campaigns. However, LSAs work best as part of a comprehensive strategy. Many successful businesses run both LSAs and traditional Search Ads to capture customers at different stages of their decision journey.

LSA Eligibility and Verification Process

Not every business can run Local Services Ads. Google has specific eligibility requirements and a verification process designed to protect consumers and maintain trust in the platform. Understanding these requirements before you start will save you time and help you prepare the necessary documentation.

Eligible industries for LSAs

Google LSAs currently support over 70 service categories across several major verticals. The program continues to expand, so check the official LSA portal for the most current list in your location:

• Home services: Plumbers, electricians, HVAC technicians, roofers, locksmiths, garage door services, pest control, house cleaners, carpet cleaners, movers, handymen
• Professional services: Lawyers, accountants, tax preparers, financial planners, real estate agents, insurance agents
• Health and wellness: Dentists, chiropractors, acupuncturists, personal trainers, massage therapists, veterinarians
• Automotive: Auto repair shops, auto glass services, tow truck operators, mobile mechanics
• Other services: Photographers, tutors, driving instructors, pet groomers, pet trainers, event planners

Verification requirements

The verification process is rigorous but straightforward if you come prepared. Google requires different levels of verification depending on your industry:

Step-by-step verification process

Here's what to expect when you begin the LSA verification process:

1. Create your LSA profile: Sign up at ads.google.com/local-services-ads and enter your business information, service areas, operating hours, and the services you offer
2. Submit business documentation: Upload proof of business registration, EIN verification, and any required business licenses for your state and locality
3. Verify insurance: Provide your certificate of insurance showing general liability coverage meeting Google's minimum requirements (typically $250,000-$500,000 depending on service type)
4. License verification: For licensed trades, submit your professional license numbers which Google verifies with state licensing boards
5. Background checks: Complete background checks through Google's partner (currently Pinkerton). This includes the business owner and any employees who interact with customers at their location
6. Review and approval: Google reviews all documentation and either approves your account or requests additional information

The entire process typically takes 2-4 weeks, though it can extend to 6-8 weeks during busy periods or if additional documentation is needed. Having all your documents ready before starting—including updated insurance certificates and employee information for background checks—can significantly speed up approval.

Google Guaranteed vs Google Screened Badges

The badge your business receives depends on your industry category, and understanding the difference matters both for customer perception and for what's required of your business. Both badges signal trust, but they communicate different things to potential customers.

Google Guaranteed badge

The Google Guaranteed badge is available for home service providers and includes Google's most consumer-friendly protection: a money-back guarantee. If a customer is dissatisfied with the quality of work from a Google Guaranteed business, they can request reimbursement from Google for up to $2,000 over their lifetime (or the equivalent in local currency).

This guarantee covers workmanship issues, not pricing disputes or scope disagreements. For example, if a plumber fixes a leak but the repair fails within a reasonable timeframe, the customer could potentially claim against the guarantee. This protection gives customers confidence to hire unfamiliar businesses, which directly benefits newer companies competing against established players.

Google Screened badge

The Google Screened badge applies to professional service providers—lawyers, financial planners, real estate agents, tax professionals, and similar categories. These businesses go through the same verification process (background checks, license verification) but do not have the money-back guarantee attached to their badge.

The distinction makes sense when you consider the nature of professional services. Legal outcomes, investment performance, and real estate transactions involve too many variables beyond the professional's control to offer a satisfaction guarantee. Instead, Google Screened communicates that the professional has verified credentials and has passed background screening.

Badge impact on consumer behavior

Both badges significantly impact click-through and conversion rates. Internal Google data suggests that businesses with verified badges see 15-30% higher engagement compared to those without. For consumers making decisions about who to let into their homes or who to trust with important professional matters, these trust signals reduce friction and accelerate decision-making.

Setting Up Your LSA Campaign

Once verified, setting up your actual campaign is relatively straightforward compared to traditional Google Ads. LSAs don't require keyword research, ad copy writing, or complex bidding strategies. Instead, your setup focuses on accurately representing your business and defining where and when you want to receive leads.

Configuring your business profile

Your LSA profile serves as your ad. Unlike Search Ads where you craft headlines and descriptions, LSAs pull information directly from your profile. This means every detail matters:

• Business name: Must match your legal business name exactly as it appears on licenses and registration
• Service types: Select all services you offer from Google's predefined list—this determines which searches trigger your ads
• Service areas: Define your geographic coverage by city, zip code, or radius from your business location
• Business hours: Set accurate hours and indicate whether you offer 24/7 emergency services
• Business bio: Write a compelling 250-character description highlighting your experience, specializations, and unique value proposition
• Photos: Upload high-quality photos of your team, vehicles, completed work, and storefront if applicable

Setting your budget and bid preferences

LSA budgeting works differently than traditional Google Ads. You set a weekly maximum budget, and Google delivers leads until you hit that cap. You don't bid on individual keywords—instead, lead costs are determined by:

• Your service category (lawyers pay more than house cleaners)
• Your geographic market (competitive metros cost more)
• Your review rating (higher-rated businesses often pay less)
• Current demand and competition

Google provides estimated lead costs when you set up your campaign, but actual costs vary. Start with a moderate budget to understand your true cost per lead before scaling. Many businesses begin with $500-1,000 weekly and adjust based on lead quality and conversion rates.

Lead preferences and scheduling

You can control when and how you receive leads through LSA settings. Configure these options to match your business operations:

• Lead type preference: Choose phone calls only, messages only, or both based on how your team handles inquiries
• Scheduling: Set specific hours when your ads appear, useful if you can only take calls during business hours
• Auto-reply messages: Create automated responses for messages received outside business hours
• Lead notifications: Configure email and app notifications to ensure rapid response to new leads

Lead Management and Response Best Practices

Getting leads is only half the equation—converting them into customers requires fast, professional response. LSA leads are often high-intent customers ready to hire, but they're also comparing multiple providers. Your response time and professionalism directly impact your conversion rate.

Response time matters

Data consistently shows that the first business to respond wins a disproportionate share of leads. For LSAs specifically, businesses that respond within 5 minutes convert at significantly higher rates than those responding within an hour. Set up systems to ensure rapid response:

• Enable push notifications on the LSA mobile app
• Assign specific team members to monitor during business hours
• Use a dedicated phone line for LSA calls so staff know to prioritize
• Create response templates for common message inquiries

Tracking lead outcomes

The LSA dashboard requires you to mark lead outcomes, and this data influences your ad performance. For each lead, indicate whether it was:

• Booked: Customer scheduled service or signed engagement
• Not booked: Valid lead but didn't convert (track reasons)
• Invalid lead: Spam, wrong service, outside area (eligible for dispute)

Tracking outcomes accurately helps you understand true cost per acquisition and helps Google optimize which searches trigger your ads. Businesses that consistently mark lead outcomes typically see improved lead quality over time.

Disputing Invalid Leads

Not every lead you receive will be legitimate. You might get calls from people outside your service area, spam calls, or inquiries for services you don't offer. Google allows you to dispute these invalid leads and receive credit for charges that shouldn't have been billed.

Valid reasons for lead disputes

• Wrong service: Caller asked for a service you don't offer and isn't listed in your profile
• Outside service area: Job location is outside your defined service area
• Spam or solicitation: Sales calls, robocalls, or other non-customer contacts
• Duplicate lead: Same person contacted you multiple times for the same job
• Job already completed: Customer was seeking follow-up on work already done
• Never connected: Call was too short to be meaningful (typically under 30 seconds)

Dispute process and timeline

To dispute a lead, navigate to the lead in your LSA dashboard within 30 days of receiving it, mark it as invalid, and select the appropriate reason. Google reviews disputes within 3-5 business days and either credits your account or maintains the charge.

Keep detailed records to support disputes—note the date, time, and reason each invalid lead was problematic. Businesses that dispute appropriately maintain healthy budgets; those who accept all charges regardless of quality overpay significantly. However, avoid disputing legitimate leads that simply didn't convert—Google tracks dispute patterns and excessive invalid disputes can impact your account standing.

Budget Optimization Strategies

Maximizing ROI from Local Services Ads requires ongoing optimization of both your budget allocation and your business operations. Unlike Search Ads where you control bids at the keyword level, LSA optimization focuses on profile quality, response performance, and strategic budget management.

Factors that affect cost per lead

Understanding what influences your lead costs helps you optimize effectively:

Strategies to reduce cost per lead

1. Prioritize reviews: Ask every satisfied customer to leave a Google review. A 4.8-star rating with 100+ reviews significantly outperforms a 4.5-star rating with 20 reviews in both positioning and cost efficiency
2. Respond immediately: Google tracks response times and factors them into ad delivery. Businesses with consistent sub-5-minute response times receive preferential positioning
3. Optimize service selection: Only list services you actively want leads for. Listing services you rarely perform leads to poor conversion and wasted budget
4. Refine service areas: Tighten your service area to zones where you convert well and can provide fast service. Leads from distant areas often don't convert
5. Monitor and dispute: Regular review and disputing of invalid leads keeps your effective cost per acquired customer accurate

Budget allocation by season

Many local services have seasonal demand patterns. HVAC businesses see spikes in extreme weather, tax professionals in Q1, and roofers after storms. Adjust your weekly budget to match these patterns:

• Increase budget 25-50% during your peak season when demand is highest
• Consider reducing budget during slow periods if lead quality drops
• Monitor competitors—some businesses pause during slow seasons, creating opportunities

LSA vs Traditional Search Ads: When to Use Each

Local Services Ads and traditional Google Search Ads serve different but complementary purposes. Understanding when each format excels helps you build an effective multi-channel strategy.

Advantages of LSAs

• Prime positioning: Appear above all other results for local queries
• Trust signals: Google badges increase conversion rates
• Pay-per-lead: Only pay for actual contacts, not clicks
• Simplicity: No keyword research or ad copy required
• High intent: Users clicking LSAs are typically ready to hire

Advantages of traditional Search Ads

• Keyword control: Target specific search terms including informational queries
• Messaging flexibility: Craft specific ad copy for different audiences
• Landing page control: Direct users to specific pages with custom experiences
• Broader reach: Reach users earlier in their research process
• Availability: Available for all industries, not just LSA-eligible categories

Recommended strategy for local businesses

For most local service businesses, the optimal approach combines both platforms:

1. LSAs for high-intent captures: Your LSAs catch customers ready to hire immediately. These deliver your best conversion rates.
2. Search Ads for research-phase queries: Target informational keywords like "how to fix leaky faucet" or "signs you need new roof" to capture customers earlier in their journey.
3. Search Ads for specific services: If LSAs only cover your primary service but you have profitable specialties, use Search Ads to target those specifically.
4. Remarketing through Display: Re-engage website visitors who didn't convert with remarketing campaigns.

Track performance separately for each channel. Many businesses find LSAs deliver lower cost per acquisition for immediate-need services, while Search Ads perform better for planned projects where customers research extensively before hiring.

Integrating LSAs With Your Overall Marketing Strategy

Local Services Ads shouldn't exist in isolation. The most successful local businesses integrate LSAs with other channels to create multiple touchpoints with potential customers. This integrated approach increases total lead volume while reinforcing your brand at each stage of the customer journey.

Combining with social advertising

While LSAs capture active searchers, platforms like Meta Ads and TikTok Ads help you reach local audiences before they're actively searching. A homeowner who sees your professional-looking Facebook ad might remember your business name when they need service, making them more likely to choose your LSA over competitors.

Geographic targeting alignment

Ensure your location targeting across all platforms aligns with your LSA service area. Inconsistent geographic coverage creates confusion and wastes budget. If your LSAs cover a 25-mile radius, your Meta Ads and Search Ads should target the same or similar area.

Review generation strategy

Reviews power LSA performance more than any other factor. Implement a systematic approach:

• Request reviews within 24 hours of job completion when satisfaction is highest
• Use email or SMS follow-ups with direct links to your Google Business Profile
• Train technicians to ask for reviews after successful service calls
• Respond to all reviews—positive and negative—to demonstrate engagement

Measuring LSA Success

Proper measurement ensures you understand your true return on LSA investment. The metrics that matter go beyond the dashboard numbers to include your actual business outcomes.

Key metrics to track

Calculating true ROI

The most important calculation is your cost per acquired customer compared to customer lifetime value. If your LSA cost per lead is $30 and your lead-to-customer conversion rate is 33%, your cost per acquisition is $90. If your average customer is worth $500 in initial job value plus potential repeat business, that's a strong return.

Track this math monthly and compare it against other channels. For many local service businesses, LSAs deliver the lowest cost per acquisition of any paid channel, making them a cornerstone of customer acquisition strategy.

Common LSA Challenges and Solutions

Even well-optimized LSA accounts encounter challenges. Here are the most common issues and how to address them:

Low lead volume

If you're not receiving enough leads, consider:

• Expanding your service area to reach more potential customers
• Adding more service types to appear for additional search queries
• Increasing your weekly budget—you may be hitting your cap before exhausting demand
• Improving your review rating and count to improve positioning
• Ensuring your business hours align with when customers search

High lead volume but poor quality

If leads aren't converting to customers:

• Review and refine your service categories—remove services you don't want leads for
• Tighten your geographic area to focus on zones where you convert best
• Evaluate your response time—slow responses lose leads to competitors
• Assess your phone answering—are staff properly qualifying and selling?
• Compare pricing—if competitors consistently beat you, leads won't convert

Verification delays

If your verification is taking longer than expected:

• Check the status page for specific requirements or documentation requests
• Ensure all employee background checks are initiated—delays here are common
• Verify insurance certificates show the exact business name and meet minimums
• Contact support proactively if verification exceeds 4 weeks without updates

Ready to maximize your local lead generation? Benly helps service businesses track performance across LSAs and other advertising channels, providing clear insights into what's working and where to optimize your local marketing spend for maximum customer acquisition efficiency.