Google Local Services Ads 101: Everything You Need to Know

46% of all Google searches are local, and service-based businesses can capitalize on this with Google Local Services Ads. Google Local Services Ads (LSAs) powered by Performance Max pay-per-lead campaigns can connect local searchers to the services your business offers quickly and easily.

While taking the leap to try LSAs can feel a bit intimidating at first, this handy article has everything you need to get started. We’re answering all the key questions around LSAs, along with tips, steps, and screenshots to help you successfully build out your Local Services Ads.

Contents

• What are Google Local Services Ads?
• What is the difference between Local Services Ads and search ads?
• Benefits of Google Local Services Ads
• Types of Local Services Ads
• How to set up Google Local Services Ads for your business
• Google Local Services Ads tips

What are Google Local Services Ads?

Google Local Services Ads are search ads catered to service-based businesses (within 80 different industries) looking to book more customers, clients, patients, etc. They provide a simple way to connect local searchers to professional services nearby–allowing potential customers to book your service right through Google.

🔍 Looking for more help with your Google Ads strategy? Download our free local search advertising pocket guide!

What is the difference between Local Services Ads and search ads?

LSAs are shown at the top of the search engine results page (SERP) in a vertical or horizontal layout, while search ads rank down the SERP. While they are smaller and contain less text than a search ad, LSAs always show the ratings and contact information of your business—which is crucial when booking services.

The other important difference is that Local Services Ads are pay-per-lead rather than pay-per-click, meaning you only pay when a qualified user contacts you from your LSA.

Another main difference between a Google search ad and a Google Local Services Ad is the campaign types in which they’re created. You can run search ads through standard search campaigns as well as PMax campaigns in Google Ads, but LSAs are only available for eligible advertisers in PMax campaigns using a pay-per-lead goal.

Since PMax is a fully automated campaign type, Google decides when it would be best to show your ad to a relevant local search based on the business information you provide (rather than targeting keywords as you would in a search campaign). This is why optimizing the business details you input when setting up your LSA (more on this later) is so important.

Benefits of Google Local Services Ads

Aside from the top-of-page search result placement of LSAs, why else would you want to use this ad type over regular search ads? Consider these benefits:

• Lower costs. Google Local Services Ads are only charged for valid leads, so you’re avoiding wasted spend on clicks that might not convert. In fact, historically, it has been found that the Google Local Services Ads average cost per lead is about $60—which is lower than the search ads average cost per lead of $66.69.
• Support your other search marketing efforts. LSAs help to get your business more search visibility and leads from the SERP while your SEO strategy grows.
• More qualified leads. Users are able to quickly find key information about your business and contact you from LSAs. With indicators like your rating, location, and more included on your ad, users can know for sure whether they’re interested before they contact you.
• Easier management. LSAs have moved directly into Google Ads under Performance Max campaigns with a new pay-per-lead goal. That means you can run LSAs without leaving Google Ads, and your LSAs get automatically created using PMax campaigns (when assigned a pay-per-lead goal), which is a campaign type you might already be comfortable with.

This list of Google Local Services Ads benefits could go on, but needless to say, they can be a lifesaver for local businesses!

Types of Google Local Services Ads

All Google Local Services Ads are shown in the same format on the SERP, so there aren’t really “types” of ad formats. However, they can be set up to achieve different conversion goals depending on which events you have tracked in your account (like getting calls rather than messages or vice versa). It’s important to note that before October 20, 2025, LSAs used to have multiple different badges (like the Google Guarantee) depending on their industry and level of verification. However, that has since changed, and all LSAs now have the Google Verified badge instead.

This Google Verified badge is meant to provide a more consolidated, cohesive, and transparent LSA experience for both users and advertisers.

Here is an example of how a verified LSA might look.

💡 Get more insight into your industry’s Google Ads benchmarks here.

How to set up Google Local Services Ads for your business

You need a Google Ads account to run Google Local Services Ads. Here are the steps to get started with Google Local Services Ads.

1. Set up your Google Business Profile (GBP).
2. Confirm that your business is eligible for LSAs by providing location and industry information.
3. Sign up and thoroughly fill out all the prompts to create your business’s profile, starting with business information.
4. Link your GBP to your Google Ads account.
5. Click the blue plus to create a new PMax campaign and select the pay-per-lead option in the goal section of campaign setup, this is what triggers the PMax campaign to create LSAs that only show in search and map results. Note that this final step is pending availability as of August 2026; in the interim, you can temporarily create LSAs through the legacy dashboard here. 
6. Congratulations! You’re running Google Local Services Ads for your business. You can now start measuring your performance using the Lead Manager report view, found in the left-hand menu of the Google Ads interface.

You can manage your GBP sync in Google Ads under the data manager section of the platform. 

🚨 Set your Google Ads up for success with an instant performance report using our Free Google Ads Grader!

Google Local Services Ads tips

Ready to try out this ad format? Here are three quick Local Services Ads tips to keep in mind.

1. Optimize your Google Business Profile first

Your Local Services Ads sync with your Google Business Profile. The ratings shown on your LSAs are pulled from your Google Business Profile, so getting more Google reviews should be a priority if you want LSAs to work as effectively as possible.

Of course, getting lots of high-quality reviews is a common small business challenge. However, bad reviews can be good for business, too. Many customers want to see your business’s authentic rating—not a bunch of disingenuous 5-star reviews. What’s important is to be updating your Google Business Profile frequently and ensure you respond to all your reviews (both good and bad) to show customers you’re proactive about your feedback. These activities can encourage other customers to leave more reviews.

Plus, don’t be afraid to just ask for reviews as well. 70% of customers are willing to leave a review when asked, so include a Google review callout in marketing channels such as your social media profiles, email campaigns, and more to grow your LSA rating fast.

2. Set your budget and goals ahead of time

Knowing your budget and goals is key to avoiding failure of your Google Ads. Knowing what you want to achieve and how much you want to spend can help you more accurately measure LSA performance as you go. You can use the following formula to guide your LSA PMax campaign budgeting.

3. Use third-party tools to nurture LSA leads

LSAs aren’t necessarily the end of your race to secure more bookings; the buyer’s journey continues well after someone contacts your business from an LSA. Be sure you have a follow-up plan in place, whether it be a targeted email campaign, a callback, or other methods to close the leads you bring in. You may need to use a third-party tool, like a customer relationship management (CRM) system or an AI-powered lead management tool, to organize and manage your leads as well.

Get started with Google Local Services Ads today

Google Local Services Ads are a no-brainer for any local business that offers services. Just be sure to set yourself up for success before you start by evaluating other areas of your business, like your Google Business Profile, Merchant Center, and CRM, to ensure your LSAs can be as effective as possible in your marketing plan. If you try out LSAs but feel ready to take your strategy to the next level, see how our solutions can help you maximize ad campaign success and generate more leads fast.

Meet The Author

Susie Marino

Susie is a Senior Content Marketing Specialist for LocaliQ and WordStream, where she uses her experience as a PPC consultant to share tips, tactics, and best practices in the ever-evolving marketing and advertising space. Susie's work has been featured in publications such as Search Engine Land, MediaPost, Social Media Today, and others. Outside of work, Susie loves to get outside for some snowboarding or (once the cold weather melts away) hiking!

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