graphic of local service ads

What Are Google Local Service Ads?

February 20, 2025

Local Service Ads (LSAs) are a game-changer for businesses that rely on local customers. Google LSAs have evolved significantly in recent years to become one of the most effective ways for businesses to connect with potential customers in their area.

Unlike traditional pay-per-click (PPC) ads, LSAs operate on a pay-per-lead basis, meaning businesses only pay when a customer contacts them directly through the ad.

These ads appear at the very top of Google search results, above standard PPC ads and organic listings, giving businesses prime visibility. With features like Google’s verification process and customer reviews prominently displayed, LSAs help build trust and credibility, making them a powerful tool for driving high-quality leads for small local businesses.

How do Local Service Ads work? 

Getting started with LSAs is quick and easy. Just follow these steps: 

  • Set Up Your Google Business Profile – Start by creating or optimising your Google Business Profile. Provide key details like your business name, services offered, operating hours, and the locations you serve. This information helps personalise your ads and ensures potential customers get accurate details about your business.
  • Meet Eligibility Criteria – To qualify for LSAs, businesses must pass Google’s verification process. This includes background checks, licence verification, and proof of insurance, depending on your industry. Businesses that meet these criteria receive the “Google Guaranteed” or “Google Screened” badge, helping build trust with potential customers.
  • Get Matched with Local Customers – Once approved, your LSAs will appear at the top of Google search results when people in your area search for services you offer. Customers can contact you directly through the ad, whether by phone call or message, making the process seamless and efficient.
  • Only Pay for Leads – unlike traditional PPC advertising, LSAs work on a pay-per-lead basis. This means you only pay when a potential customer contacts you through the ad, ensuring that your marketing budget is spent on genuine leads rather than just clicks.

Key benefits of Local Service Ads 

Google Local Service Ads offer a powerful way to attract local customers while keeping your advertising costs efficient.

  • Prime Visibility – Your business appears right at the top of Google search results, capturing maximum exposure and attracts customers actively searching for your services.
  • Pay Per Lead – Unlike traditional advertising models, LSAs operate on a pay-per-lead basis. You’re only charged when someone contacts you directly, making LSAs a budget-friendly solution. 
  • Build Trust with Google Guaranteed – Earning the “Google Guaranteed” badge assures customers of your credibility, boosting their confidence in choosing your services. 
  • Easy to Manage – LSAs are designed to be user-friendly. Unlike complex PPC campaigns that require constant optimisation, LSAs are straightforward to set up and easy to maintain, making them ideal for business owners who may not have extensive digital marketing experience. 

What is the difference between Local Service Ads and Google Ads? 

The main difference is that Local Service Ads are pay-per-lead, whereas Google Ads charge per click. With LSAs, your ad spend is tied to actual engagement, eliminating lots of the guesswork and time that comes with conventional ad campaigns. 

FeatureLocal Service AdsRegular Google Ads
Pay StructurePay-per-lead, you only pay for qualified leads directly related to your services.Pay-per-click, you pay for every click regardless of conversion.
PlacementAppear at the very top of search results, above regular Google Ads and organic results.Appear below Local Service Ads and compete for top positions based on bidding and quality.
Trust IndicatorsIncludes business information, Google Guarantee badge, and reviews.Lacks built-in trust signals like the Google Guarantee badge.
Lead QualityHigher-quality leads as users are directly looking for specific local services.Mixed-quality leads, from those browsing to serious searchers.
Setup & MaintenanceSimple setup and less time-intensive to manage. Google handles much of the targeting automatically.Requires active management, including keyword research, bidding strategies, and regular tracking/optimisation.
TargetingFocused on local regions, ensuring relevance to users in your area.Broader targeting that often requires manual adjustments to reach specific audiences.

List of businesses currently able to utilise Local Service Ads 

Local Google Ads cater to a range of industries, depending on the location, allowing numerous types of local businesses to benefit. Examples include: 

  • Home Services – Electricians, plumbers, painters, HVAC professionals, and pest control specialists. 
  • Legal Services – Family lawyers, criminal defence attorneys, and real estate lawyers. 
  • Health and Wellness – Personal trainers, chiropractors, and yoga studios. 
  • Cleaning and Repair Services – House cleaners, carpet cleaners, and window repair professionals. 
  • Pet Services – Dog groomers, pet trainers, and pet boarding companies. 
  • Educational Services – Tutors, language instructors, and test preparation providers. 

Google continues to expand the list of eligible businesses, so it’s worth checking if your industry qualifies for LSAs. 

screenshot of local service ads hvac in sheffield

Tips for maximising your success with LSAs 

Monitor and adjust your ads

Regularly monitoring your LSA performance and adjusting based on results is vital for success. Use the analytics dashboard to assess key metrics such as lead volume, conversion rates and overall budget usage. If certain services have higher demand or generate better leads, prioritise them to maximise your return on investment. 

Similarly, refine your targeting by analysing customer inquiries and optimising your service descriptions or areas served. Continuous improvements ensure your business remains competitive in local search results. 

Stand out in competitive industries

Certain industries, such as legal services and home improvement, tend to be highly competitive within the LSA space. To stand out, businesses in these sectors should focus on earning excellent customer ratings, obtaining the “Google Guaranteed” badge and refining their profiles to emphasise experience and expertise. 

Additionally, utilising high-quality images and descriptions can create a more visually appealing and informative listing, increasing the likelihood of standing out in the search results and attracting the right leads. 

Benefit from seasonal opportunities

Capitalising on seasonal trends can give your LSAs an additional boost. For instance, home improvement businesses might focus on conservatory roof services during summer or heating repairs in winter. Similarly, tax professionals or accountants can emphasise their services during peak tax return season. 

Tailoring your ads to align with customer needs during specific times of the year can make your business more relevant and accessible, directly leading to higher lead volume. 

Integrating Local Service Ads with your overall marketing strategy 

While Local Service Ads are a fantastic tool for generating leads, pairing them with a well-rounded local SEO strategy can maximise your business’s online visibility in your customer’s local area. 

Optimise your website for local search 

Consider adding the names of cities or local neighbourhoods to your content and meta descriptions. This simple practice can help you rank higher for local queries, ensuring that potential customers in your area can find you easily. 

Leverage Google My Business 

Claim and optimise your Google My Business (GMB) profile by completing all relevant fields, uploading high-quality images, and ensuring your business information is accurate and consistent. Positive Google reviews should also be an ongoing focus, as they enhance credibility, attract new clients, and improve search rankings. 

Promote multi-location businesses 

For businesses with more than one location, create individual location pages on your website. Include unique details, such as specific contact information, regional offers, and service descriptions for each branch, to ensure comprehensive visibility. 

Combine LSAs with social media marketing 

While LSAs provide excellent visibility on Google, pairing them with targeted social media marketing can further increase your reach. Platforms such as Meta Ads allow for hyper-local targeting, enabling you to connect with potential clients in your immediate area. 

By sharing customer reviews, promotional offers, case studies and behind-the-scenes content on social media, you can enhance your brand recognition and drive more traffic to your LSAs. This multi-channel approach helps establish a well-rounded online presence. 

Combine LSA with traditional Google Ads 

Running LSAs in tandem with traditional Google Ads can further boost your reach, enabling your business to dominate the search results as well as platforms such as Google Maps. The combination of both platforms leverages the top positions in search rankings, ensuring maximum exposure. 

By effectively integrating Local Service Ads into your broader brand strategy, you can create a powerful marketing approach that generates high-quality leads, builds trust, and ensures your business thrives in today’s competitive online marketplace. 

Final thoughts 

Local Service Ads are an essential tool for businesses aiming to capture local markets. By understanding their potential and integrating advanced strategies, such as leveraging customer reviews, combining LSAs with social media or running seasonal campaigns, you can ensure your business stays relevant and competitive. 

Investing time and resources into optimising LSAs will not only generate leads but also build long-lasting trust and brand recognition, key factors for success in today’s fast-paced digital landscape. Get in touch with our experts to see how we can help you leverage search engines to grow your business.

About the author.

Toby Devonshire holding a laptop

Toby Devonshire

Founder of Blank Slate Digital.

With years of experience working alongside some of the biggest brands in the world, I’ve built my career in digital marketing on a genuine passion for helping businesses grow.

To become the founder of Blank Slate Digital, I’ve taken a self-taught journey to master digital strategies that deliver real results. Now, I’m here to share that knowledge with you, making complex marketing simple and achievable for every business.