Google Local Services Ads, pay per lead and the Google Verified badge

What are Google Local Services Ads?

Google Local Services Ads are pay-per-lead listings for verified local service providers, as Google describes them on its US Local Services Ads page. A customer taps the ad and contacts the business. You are charged only when a prospective customer contacts your business through the ad. People also call them Google LSA, and you will see both names.

Where do Local Services Ads show on Google?

Local Services Ads show at the top of Google Search results, in the areas you choose. A Springfield plumber picks the Lane County towns it serves as its ad areas.

A customer who taps the ad and calls or messages you is a lead, and leads are what you pay for.

How does pay per lead work in Local Services Ads?

With Local Services Ads, you pay for valid leads, and only when a customer contacts you through the ad. Google lists answered or returned calls, texts or emails, voicemails, and booking requests in the US and Canada as valid leads. A missed call during business hours counts too, when the caller stays on the line for more than 20 seconds.

Leads judged invalid or low quality are not charged and may be credited. Google assesses lead quality over 30 days and automatically credits poor-quality, duplicate or invalid leads. Credits are not available for health care verticals or tax specialists, and not for advertisers in some regions. If a lead looks invalid, you can dispute or flag it in the US and Canada, and a successful dispute may earn a credit.

Do you pay for a missed call? Only when the call counts as a lead under the 20 second rule. If you answer, Google does not charge by ring time, and follow-up from the same phone number or email within 15 days is not charged again.

We set up and run Local Services Ads as part of our Google Ads management for Springfield and Eugene businesses.

How much do Local Services Ads cost?

Local Services Ads cost a price per lead, and Google sets it by several factors. Google's lead pricing page gives no price or range, so we do not quote one.

You set an average weekly budget. You can go over it in a given week but not over the monthly max, which is the weekly budget times the average number of weeks in a month. After the monthly max your ad stops for the month unless you raise the budget.

The 2026 move changes the units. Weekly budgets become daily averages, the weekly figure divided by 7, and the monthly cap is the daily average times 30.4.

What is the Google Verified badge?

The Google Verified badge is the trust badge Google shows on Local Services Ads for businesses that pass its screening and verification. Existing advertisers that met the requirements earn it automatically, and new advertisers must successfully complete the Local Services screening and verification process. The badge appears on the Local Services Ads profile, and Google says ad ranking is not affected.

Is Google Guaranteed still available?

No. Google now calls the badge the Google Verified badge, and the reimbursement program tied to the old Google Guaranteed badge is ending. Google's page covers claims for services booked before 7 December 2025.

Which businesses can run Local Services Ads?

Verified local service providers can run Local Services Ads, and the first phase of Google's 2026 change names plumbing, HVAC, electrical and roofing. These four are examples, not the full list.

Lane County has 104 plumbing and HVAC employer businesses, 101 electrical contractors and 39 roofing contractors (Census County Business Patterns, 2023). The count includes only businesses with paid employees, so owner-only trades are not counted. If you run one of these trades, our page on Marketing for home service businesses and contractors shows how the whole system fits together for you.

How do you get the Google Verified badge?

You get the Google Verified badge by passing Google's Local Services screening and verification. Google explains the screening steps on its own Local Services help pages.

Once an advertiser is verified, the way its ads run is changing in 2026.

What changes for Local Services Ads in 2026?

Google Ads Help says Google is moving Local Services Ads into Performance Max campaigns with pay-per-lead goals, in phases that start in August 2026. The table shows who moves and when, row by row, as of 9 November 2026.

The account admin gets an email 14 days before migration and a reminder 7 days before. Google says to allow up to two weeks for migration and performance to stabilize. Check the budget and bidding after the move, because manual maximum cost-per-lead bids no longer exist. As Local Services Ads move inside Google Ads, the choice between the two looks different.

Should you run Local Services Ads or Google Ads?

Run Local Services Ads when your trade qualifies and you want to pay per lead, and run Google search ads when your business is outside the Local Services Ads categories or you need control over the exact searches you pay for. The table compares the two on five points.

Quality Score is a diagnostic for search ads and not an input in the ad auction, so it does not set your price. Whichever ad a customer taps, the reviews under your name matter.

Do reviews affect Local Services Ads?

Yes. Your rating and number of reviews are part of the profile quality Google uses to rank Local Services Ads, alongside average response time, images and completed verification checks. Google says higher-quality profiles may rank higher and may also pay lower costs per lead.

Customers read the same numbers. 68% of consumers will only use a business rated four stars or higher, and 47% will not use a business with fewer than 20 reviews (BrightLocal Local Consumer Review Survey, 2026). Our guide to Google reviews for business covers how to get more reviews and reply to every one.

Who can set up and manage Local Services Ads for you?

We set up and run Local Services Ads for Lane County businesses as part of our paid ads work. As with all our paid ads work, the ad account is yours, you pay ad spend directly, and we show the budget apart from our fee.

Answering fast matters. One undated vendor test of 466 home services companies found 40% did not respond to a test lead (Valve+Meter). We also set up missed-call text back and quote follow-ups, so a lead that rings out still hears from you.

You get a monthly report on calls and leads.

Book a free consultation.