Quick answer: Google Local Services Ads charge per lead and show a Google badge above search ads. Check availability for your category and area first.
Local Services Ads (LSAs) are a different kind of Google ad for service businesses. They appear at the very top of some search results, often with a verification badge, and you pay per lead rather than per click.
How they work
- People search for a service, such as “electrician near me”.
- Eligible businesses appear in a box at the top with their rating, reviews, badge and hours.
- People call or message directly from the ad.
- You pay when someone contacts you about a relevant service (a lead), not when they click.
Who can use them
LSAs are only available for certain categories and in certain countries and areas, and the list keeps changing. Most published Australian guides describe them as available for some home-service trades in some locations. Check your business on Google’s eligibility page before planning around them.
To be approved you’ll usually need business, licence and insurance checks, and in some categories background checks.
Pros
- Pay per lead: no paying for clicks that never call.
- Prime position: above standard search ads.
- Trust signals: the badge and reviews stand out.
- Simple to run: set a budget and service area; Google handles the rest.
Cons
- Limited control: no keywords, ad copy or landing pages to test.
- Ranking depends heavily on reviews, responsiveness and hours. Missed calls hurt you.
- Lead quality varies. You can dispute invalid leads (wrong service, outside area), but not every bad lead is refunded.
- Not available for every business.
Are they worth it?
If your category is eligible in your area, LSAs are usually worth testing alongside a normal Search campaign. Track not just cost per lead, but how many leads become booked jobs.
Make LSAs work
- Answer the phone. Responsiveness affects your ranking.
- Get steady Google reviews.
- Set accurate hours and service areas.
- Dispute leads that are clearly invalid.
Sources and further reading
Written by Gregory
20 years building websites and running lead generation, mostly with my own money on the line. Based in Sydney, working with clients worldwide. How I work →