What Local Service Ads Are
Local Service Ads appear at the very top of Google search results — above regular paid ads and above organic results. They show your business name, review rating, years in business, and a Google Guaranteed or Google Screened badge. When a customer calls through an LSA listing, you pay for the lead. When they don't, you don't pay anything.
This pay-per-lead model is fundamentally different from Google Search ads, where you pay for every click regardless of whether it converts. With LSA, Google absorbs the risk of unqualified traffic. You only pay when someone actually contacts you.
How Much Local Service Ads Cost
LSA lead costs vary by market and vertical. Plumbers typically pay $25-$75 per lead. HVAC companies pay $30-$80. Electricians fall in a similar range. The exact cost depends on your market's competition level and the service category.
You set a weekly budget and Google stops showing your ads once that budget is reached. This gives you predictable spending. If you set a $500 weekly budget and leads cost $50 each, you'll get roughly 10 leads per week. You can dispute leads that are spam, wrong numbers, or outside your service area — Google refunds those.
The Google Guaranteed Badge
The green Google Guaranteed checkmark is a trust signal that directly influences click-through and conversion rates. To earn it, your business passes a background check, provides proof of insurance and licensing, and maintains a minimum review rating. Google backs the badge with a money-back guarantee to consumers — up to the job value if they're unsatisfied.
For service businesses that enter customers' homes — plumbers, electricians, HVAC technicians, locksmiths — this badge meaningfully reduces the friction of hiring a stranger. It's not just advertising. It's Google putting their reputation behind your business.
Which Verticals Should Run LSA
LSA is available for specific verticals and not all businesses qualify. The strongest performers tend to be emergency-driven home services: plumbing, HVAC, electrical, locksmith, garage door repair, pest control, and roofing. These verticals benefit most because the customer is searching with immediate intent and the Google Guaranteed badge provides the trust needed to hire quickly.
LSA is less impactful for businesses with longer consideration cycles or lower urgency — dog trainers, landscapers, and remodelers can still use it but typically see lower lead volume because customers in those verticals compare more before deciding.
LSA and Google Search Ads Together
LSA doesn't replace Google Search ads. They complement each other. LSA appears at the top of the page for high-intent local searches. Google Search ads appear below that. Running both means you can occupy two positions on the same results page — the LSA listing at the top and a search ad below it. This double presence increases the probability that a customer contacts you instead of a competitor.
The budget for each channel is separate. You might run $2,000 per month in LSA and $5,000 per month in Google Search ads. Together, they cover different parts of the customer's search experience.