If you're a plumber, electrician, locksmith or other local service business, you may have noticed ads at the very top of Google showing a business name, star rating and a blue "Google Verified" badge. These are Google Local Services Ads (LSAs), and they work quite differently from normal Google Ads.
In this guide I'll explain what Google Local Services Ads are, how they work, how much they cost, how to get verified and set up, and whether they're worth it for your business. If you'd like help, our Google Ads management and local SEO services cover both paid and organic local visibility.
What Are Google Local Services Ads?
Google Local Services Ads are a type of Google advertising designed specifically for local service businesses. They appear at the top of relevant local searches, often above standard search ads and the Google Maps results.
Each ad shows:
- Your business name
- Your star rating and number of reviews
- The Google Verified badge
- Your location or service area
- Options to call or message you directly
The big difference: with Local Services Ads, you usually pay per lead, such as a phone call or message, rather than per click.
How Do Google Local Services Ads Work?
When someone searches for a local service, such as "electrician near me", Google may show a small selection of verified local businesses at the top of the page. Customers can view your profile, read your reviews and contact you directly from the ad.
You don't choose keywords. Instead, you choose the job types you offer and the areas you serve, and Google matches your ad to relevant searches. You set a budget, and Google shows your ad to people in your service area searching for your services.
The Google Verified Badge
In October 2025, Google replaced its previous badges, "Google Guaranteed" and "Google Screened", with a single Google Verified badge. The badge shows customers that your business has passed Google's screening and verification checks. Google also discontinued the money-back guarantee that used to be associated with the old Google Guarantee badge.
The checks you need to complete depend on your business category and location. They can include business registration, licensing, insurance and background checks on the business owner and staff. Keep your documents up to date, as expired licences or insurance can affect your eligibility.
Who Can Use Local Services Ads in the UK?
Local Services Ads are only available for certain service categories in the UK, and Google continues to add more. Eligible categories commonly include home services such as plumbers, electricians, locksmiths, roofers, cleaners, removals and pest control, alongside some professional services.
Eligibility depends on your category and location, so check Google's Local Services Ads site to see whether your business qualifies. If you're not eligible, standard Google Ads and local SEO remain excellent options.
How Much Do Google Local Services Ads Cost?
Local Services Ads use a pay-per-lead model. You pay when a customer contacts you through your ad, not when they view or click your profile.
Lead costs vary depending on your job type, your location and competition. Emergency and high-value services typically cost more per lead than routine jobs. You set a weekly budget, and Google won't exceed it. If a lead is invalid, for example spam or a job you don't offer, Google now reviews leads automatically and may credit invalid ones.
Are Google Local Services Ads Leads Exclusive?
In most cases, when a customer contacts you directly through your ad, that lead goes only to you. However, customers can view several businesses in the results and may contact more than one, so it's important to respond quickly and professionally.
How to Set Up Google Local Services Ads
- Check eligibility for your business category and location
- Make sure you have a verified Google Business Profile, which is required to run Local Services Ads
- Create your Local Services Ads profile, adding your services, job types, service areas and business hours
- Complete the verification checks required for your category
- Set your weekly budget
- Collect reviews, as your Google Business Profile reviews appear on your ad
- Launch and respond to leads quickly
How to Rank Higher in Local Services Ads
Your position in Local Services Ads isn't based on bids alone. Factors include:
- Your proximity to the customer
- Your review score and number of reviews
- How quickly you respond to enquiries
- Your business hours
- Complaints about your business
- Your budget
Answering calls and messages promptly, collecting reviews consistently and keeping your profile complete all help your ads appear more often.
Local Services Ads vs Google Search Ads vs Local SEO
| Local Services Ads | Google Search ads | Local SEO | |
|---|---|---|---|
| You pay | Per lead | Per click | No cost per click |
| Placement | Very top of local searches | Top and bottom of search results | Map pack and organic results |
| Control | Limited (job types, areas, budget) | High (keywords, copy, landing pages) | Depends on rankings |
| Trust signal | Google Verified badge | Sponsored label | Reviews and organic position |
| Eligibility | Selected categories only | Almost any business | Any business |
Many local businesses benefit from combining all three: Local Services Ads for premium placement, Search ads for wider keyword coverage, and local SEO for long-term, free visibility.
Are Google Local Services Ads Worth It?
For eligible businesses, Local Services Ads are often worth testing. The pay-per-lead model means you're paying for enquiries rather than clicks, and the Google Verified badge builds trust.
They work best when:
- Your category is eligible in your area
- A new job is worth comfortably more than the cost of a lead
- You can answer calls and messages quickly
- You already have, or can build, strong Google reviews
They may be less suitable if your category isn't eligible, your job values are low, or you can't respond to leads promptly.
Tips for Getting More From Local Services Ads
Answer quickly. Responsiveness affects both your ranking and whether a lead becomes a customer. Aim to answer calls live and reply to messages within minutes.
Keep your hours accurate. Only show as available when you can genuinely take calls.
Build reviews continuously. Ask every satisfied customer for a Google review, and respond to all reviews professionally.
Choose job types carefully. Only select the services you actually want, so you don't pay for leads you can't take.
Dispute invalid leads promptly if they aren't credited automatically.
Track outcomes. Record which leads become jobs and what they're worth, so you know your true return.
LSAs Alongside Your Other Marketing
Local Services Ads work best as part of a wider local strategy. Your Google Business Profile, reviews and website all feed into how customers judge you once they see your ad. A strong website with clear service pages helps convert people who research you further, and good local SEO keeps you visible in the map pack and organic results when your weekly budget runs out.
Final Thoughts
For eligible local service businesses, Google Local Services Ads offer premium placement, a trusted badge and a pay-per-lead model that ties cost to real enquiries. Combine them with strong reviews, fast responses and good local SEO for the best results.
Want to know whether Local Services Ads suit your business? Get a free audit and we'll recommend the right local advertising mix.
