Local Services Ads
Also called: LSA, local service ads, Google Local Services Ads
Local Services Ads (LSAs) are Google's pay-per-lead ads for local service businesses, shown at the top of search results above text ads and organic listings. Advertisers pay per qualified lead (a call, message, or booking) instead of per click, and verified providers carry a Google Verified badge.
Unlike standard Google Ads, which charge per click, LSAs charge only when a customer contacts you through the ad: a phone call, a text or email (US and Canada), a voicemail, or a booking request. Leads that fall outside your service, come from someone only researching prices, or land outside your business hours can be marked invalid and are not charged.
How LSAs rank
Placement is an auction, but not a pure bidding war. Google says order is set by your bid (the maximum you will pay for a lead), how likely the ad is to produce a lead (which leans heavily on responsiveness, since missed calls hurt you), and profile quality: your star rating, review count, average response time, photos, and completed verification checks. You set an average weekly budget tied to the number of leads you want, and Google caps spend at a monthly maximum.
On trust signals: as of October 20, 2025, Google folded Google Guaranteed, Google Screened, and License Verified into one blue Google Verified badge and discontinued the money-back guarantee that used to back the green shield. The badge now confirms a provider passed licensing, insurance, and background checks, with no reimbursement attached.
Example: a plumber with 120 reviews at 4.8 stars who answers within minutes will usually outrank a higher bidder whose calls go to voicemail.
How it affects your traffic
LSAs sit above the map pack and organic listings, so even a business ranking first organically now appears below the paid Local Services block on high-intent queries. The signals that win LSA placement (reviews, response time, and a complete verified profile) are the same ones that lift organic local rankings, so the two channels compound instead of competing. Our Local SEO work builds the Google Business Profile, review velocity, and citation foundation that raises you in both the map pack and the LSA auction, so you are not stuck paying per lead for visibility you could also earn.
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