What if you could advertise your business and only pay when someone actually called you?
No paying for clicks from people who are just browsing. No wasting money on accidental taps. Just real, high-intent phone calls from customers who need your service right now.
That's exactly how Google Local Service Ads (LSAs) work. And if you're a local business owner, this might be the most powerful, risk-free advertising channel available today.
Zero
Wasted Clicks
Top
Search Placement
High
Buyer Intent
1. What Are Google Local Service Ads?
You've probably seen them. When you search for something like "plumber near me" or "dentist," you might see a few businesses at the very top of the search engine results page (SERP) with a little green checkmark and the words "Google Guaranteed."
Those are Local Service Ads. They show up above the regular text ads, above the map pack, and above organic results. They are literally the first thing people see.
Sponsored • Local Services
Elite Plumbing Professionals
Serving your area • Open 24/7
City-Wide Plumbing & Drain
Serving your area • Closes at 6 PM
What Makes LSAs Different
• Pay per lead, not per click. You only pay when someone calls or messages you through the ad. Not for views. Not for clicks. Only for actual contacts.
• Top placement. LSAs appear above everything else.
• Google Backing. The Google Guaranteed badge builds instant, massive consumer trust.
2. Who Can Use Local Service Ads?
LSAs aren't available for every business. Google restricts them to service-based industries where trust, safety, and licensing matter. Available categories include:
The list keeps growing. Check Google's official documentation to verify if your specific trade is currently supported in your California zip code.
3. How Much Do Local Service Ads Cost?
Unlike regular Google Search Ads (where you set a daily budget and bid per click), LSAs work differently. You set a weekly budget for how much you're willing to spend on leads in total. You also set how much you're willing to pay per lead.
You only pay when you get a valid lead. If you don't get any calls that week, you pay exactly zero dollars.
The Math:
Let's say you're an electrician. You set your budget at $300 per week, willing to pay $30 per phone call.
• Get 5 calls = Pay $150.
• Get 0 calls = Pay $0.
• Get 10 calls = Pay $300 (Google will then pause your ads until next week to respect your budget limit).
4. The Google Guaranteed Badge
This is the secret sauce of LSA conversion rates. To run LSAs, Google puts your business through a rigorous screening process. They verify:
- State licenses and liability insurance (critical for CA contractors).
- Background checks on the business owner and field workers.
- A history of positive customer reviews.
Once you pass, you get the green "Google Guaranteed" badge. This tells consumers that Google inherently trusts your business. In fact, if a customer books through the LSA and isn't satisfied with the quality of the work, Google may refund them up to $2,000 out of their own pocket.
5. LSAs vs. Regular Google Search Ads
Should you use LSAs or stick to traditional Google Search Ads? Here is how the two platforms compare:
Local Service Ads
• Pay only for leads (calls/msgs)
• Google Guaranteed badge
• Appears above traditional ads
• Minimal setup/maintenance
• Dispute invalid leads for refunds
Search Ads (PPC)
• Pay per click (even if no call)
• No trust badge included
• Extensive keyword targeting
• Directs traffic to custom landing pages
• Complex campaign management
6. LSAs vs. Organic SEO
LSAs are not a replacement for SEO. They are highly complementary.
- LSAs provide instant leads: You pay money, you get calls today. When you turn off the budget, the calls stop instantly.
- SEO provides sustainable equity: It takes time to rank in the organic Map Pack, but once you do, you generate leads 24/7 without paying for every click or call.
The smartest businesses dominate the SERP by showing up in all three spots: The LSA block at the top, the organic Map Pack in the middle, and the organic text results at the bottom.
7. How to Get Started
Ready to try LSAs? Here is the deployment process:
Eligibility
Visit ads.google.com/localservices to check your category and zip code.
Verification
Submit your license, insurance, and background check info to Google's screening partner.
Budgeting
Set your weekly budget cap and your target bid-per-lead.
Launch
Turn on the ads. Manage and dispute leads directly in the LSA dashboard.
Need Help Passing the LSA Screening?
The verification process can be tedious. We help California contractors organize their profiles, pass background checks, and launch high-performing LSA campaigns.
Talk to Us About LSAs