Google Local Services Ads for Service Businesses

How they differ from search ads

A normal search campaign, covered in our Google Ads basics guide, lets you choose keywords, write the ad and pay per click to your website. Local Services Ads work differently. Google's overview says the ad is generated from your business information: name, a tracking phone number that forwards to your own, location, reviews and star rating, hours and photos. There is no ad text to write and no keyword list.

Google's getting started page says the ads show when people search for the services you offer in the areas you choose. Customers can call you, send a message or, in some cases, book directly. The lead then comes to you, usually without a visit to your website.

Who can use them

Local Services Ads are limited to certain business types and countries. Google's Local Services Ads page groups the eligible categories into home, business, health, learning, care, wellness, beauty and automotive services. Its examples include plumbing, moving, lawyers, accounting and real estate. If your business is not in an eligible category, Google points you to regular Google Ads.

Rules also vary by country. Google's screening page says the process "varies by business category and location". Its business registration table covers Austria, Belgium, France, Germany, Ireland, Italy, Spain, Switzerland and the United Kingdom, alongside the US rules. The sign-up flow tells you whether your category is available where you work, so check there before you plan around it.

Screening and the Google Verified badge

Every advertiser goes through Google's screening first. Depending on category and country, Google's qualification page lists:

• Background checks on the business, the owner and, in some categories, every worker who serves customers, run by third-party partners.
• License checks against state, provincial or national licences, where they apply.
• Insurance checks, with the type and minimum amount set by category and location.
• Advanced verification in some categories, which can include a video interview.
• A matching Google Business Profile, which in select EMEA countries must be claimed and managed by the person completing the checks.

Older articles describe two badges, Google Screened and Google Guaranteed. Google has since replaced them with one: its Google Verified badge page says it is "launching a single badge for all advertisers". Existing advertisers who had completed verification received it automatically, and new advertisers get it once they meet all the verification requirements. The same page says the Money Back Guarantee that came with the Google Guarantee badge is being discontinued. Reimbursement requests had to be submitted before 7 December 2025.

The getting started page also describes pre-badge ads. Once you pass the preliminary checks, your ad can run while you finish the rest, but Google places it below providers who have completed everything. Google says the Verified badge is not available for some categories, naming auto, beauty and dining.

What you pay for: leads

Google's How leads work page sets out what counts as a valid, charged lead. It includes:

• a call you answer, or a call back in which you speak with the customer;
• a missed call during your business hours where the customer stays on the line for more than 20 seconds;
• a text message, email or voicemail from the customer;
• a booking request (United States and Canada only).

Follow-up contact from the same phone number or email is not charged again, as long as there is interaction within 15 days. "Business hours" means the hours in your Google Business Profile, so keep them accurate. Google says message leads are typically priced lower than phone leads, though not always.

You set an average weekly budget. Google may spend more than that in a given week, but never more than a monthly maximum: the weekly budget times the average number of weeks in a month. Once that maximum is reached, your ad stops for the rest of the month. Google's bidding page lists three bid modes:

• Maximize leads, where Google sets the bid and recommends it;
• Target cost per lead, which is automated with an optional target;
• Max per lead, a manual limit.

Google says results take about two weeks to settle while its model learns about your business. Billing runs through Google Ads, and a suspension of your Google Ads account also suspends your Local Services Ads.

Poor leads and credits

Google handles poor leads mainly through automatic credits. Its lead credits page says leads judged invalid or low quality at first contact are not charged. Charged leads are reassessed by Google's models and may be credited later, in most cases within 30 days. Each lead shows a status: Charged, Not charged, In review or Credited.

There are limits. Google says it "no longer supports credits for 'job type not serviced' and 'geo not serviced' leads". Lead credits are not available for health care, tax specialists or advertisers in EMEA. If you get leads for work you do not do, the fix is to narrow your service areas, categories and job types, then rate individual leads in the lead feedback survey. In the EU and UK, check every charged lead yourself, because there is no automatic credit to fall back on.

Ranking, reviews and your Business Profile

Google's ad rankings page says listings are ordered by an auction that weighs your bid together with how likely your ad is to produce a lead and the quality of your profile. Google names factors including:

• your responsiveness, where missed calls count against you;
• how relevant your services are to the search;
• your rating and number of reviews;
• your average response time, photos and completed verification checks.

If several of your locations serve the same area, only the highest-ranked one shows.

Reviews come from your Google Business Profile. Google's reviews page says they are managed in Business Profile, not in the Local Services Ads account, and that star ratings and review counts affect ranking. If you set up Local Services Ads from your Business Profile, Google's profile page says your business name, address and location type come from the profile and can only be changed there. Our Google Business Profile guide covers setting the profile up properly first.

Before you sign up

• Make sure your Business Profile is verified, with correct hours, service areas and a steady flow of genuine reviews.
• Gather licences, insurance certificates and business registration documents for your category.
• Decide who answers calls and messages, and how fast. Missed calls cost money and ranking.
• Keep the job types and service areas tight from day one, especially in Europe, where poor leads are not credited automatically.
• Track which leads become paid work, so you can compare cost per job with your search campaigns and your local service area pages.

Frequently asked questions

Do I pay per click with Local Services Ads?

No. Google charges per valid lead, such as an answered call, a missed call during business hours where the caller stays on the line for more than 20 seconds, a message or a booking request. Follow-up contact from the same customer within 15 days is not charged again.

What happened to Google Screened and Google Guaranteed?

Google replaced both with a single Google Verified badge. Existing verified advertisers received it automatically, and Google is discontinuing the Money Back Guarantee that came with the Google Guarantee badge.

Can I dispute a bad lead?

Google now credits poor-quality leads automatically, in most cases within 30 days, and you can rate leads in the feedback survey. Automatic credits are not available for advertisers in EMEA, health care or tax specialists, and Google no longer credits leads for job types or areas you do not serve.

Do I need a Google Business Profile?

Reviews and business hours come from your Business Profile, and in select EMEA countries a matching, managed profile is one of the required checks. Keep it verified and accurate before you start.

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