Google Local Services Ads: What They Are and How LSAs Drove $125k of Revenue in a Month
If you run a service-based business, you may have noticed a new type of listing at the very top of Google when you search for things like “plumber near me.” These are called Google Local Services Ads, and they are not the same as the regular Google ads you might be used to.
At Tactycs, we have been watching how local services ads by Google are changing the way local businesses connect with customers. These are not just another kind of online ad. They are highly trusted placements that appear above all other results and are backed by the Google Guaranteed or Google Screened badge.
Whether you are a contractor, lawyer, or real estate agent, it is worth knowing what these ads are, how they work, and whether they are right for your business.
A Real Example: $125k in Revenue from a Single Month of LSAs
Before we dive into how Local Services Ads work, here’s why they matter. One of our clients, Quality Care Roofing, used LSAs to generate 45 high-quality leads in a single month, turning a $1,466.80 ad spend into over $125,000 of revenue. That’s the power of appearing at the very top of Google with the trust of the Google Guaranteed badge behind you. And the best part? They didn’t have to mess around with ads or figure it all out on their own. We handled the setup, paperwork, and optimization so they could just focus on booking jobs and running their business. Now let’s break down how it works and whether it could be a fit for your business too.
What Are Google Local Services Ads?
Google Local Services Ads (also called LSAs or Google LSA) are sponsored listings that appear at the very top of a Google search when someone looks for a service-based business in their area. Unlike traditional Google local ads, these are designed specifically for home services, legal, and care-based businesses.
What makes them unique is that Google only allows certain categories of businesses to participate, and every listing is verified. This means businesses must pass background checks, provide proof of insurance, and hold the proper licences. Depending on the type of service you offer, you’ll be approved under one of two trust badges: Google Guaranteed or Google Screened.
Google Guaranteed is designed for home service businesses like plumbers, electricians, or cleaners and includes financial protection for customers. If a customer is unhappy with the service, Google may reimburse them, which adds a layer of trust.
Google Screened is for professional service providers like lawyers, real estate agents, or financial advisors. It focuses more on verifying professional credentials like licence and background checks, but it doesn’t include the same reimbursement guarantee.
How Local Services Ads Differ From Google Ads
There is still a lot of confusion between Google local service ads and regular Google Ads. While both are paid placements, they work very differently.
Here is a simple breakdown:
Google Ads (formerly AdWords) are pay-per-click. You write your ad copy, bid on keywords, and pay every time someone clicks on your ad, whether they call you or not.
Local Services Ads are pay-per-lead. You only pay when someone actually contacts your business through the ad, either by phone or direct message.
This means you are only paying for real potential customers, not for random website visitors or window shoppers. That is a big deal for service businesses who want better return on their ad spend.
Who Can Use Google Local Services Ads?
Google does not open LSAs to every business category. Currently, they are available in industries like:
Plumbing
Electrical
HVAC
Roofing
Cleaning services
Lawn care
Legal services
Real estate
Pet care
Financial services
What You Need to Qualify
A valid business licence for your province
General liability insurance
Background checks (owners and possibly staff)
At least one Google review (although more is better)
Why Do Google Local Service Ads Matter?
These ads matter because they give small service businesses a huge competitive edge.
Here is why they work:
Top-of-page visibility
These ads appear before everything else, including the local map pack and organic search results. If you want visibility, there is no better place to be.
Built-in trust with the Google Guaranteed or Google Screened badge
Customers are more likely to click on a business that has been verified and guaranteed by Google. It gives peace of mind and makes you stand out.
You only pay for real leads
Because it is pay-per-lead, you are not wasting budget on low-quality traffic. If someone calls you through your LSA, that is when you pay.
Minimal maintenance
There is no need to write ad copy or manage keyword lists. Once you are set up and approved, you just manage your budget and respond to leads.
Reviews help boost your ranking
Unlike Google Ads, where budget often wins, LSAs also factor in your Google review score, responsiveness, and proximity. This means great service can actually help you rank better.
Common Questions About Google Local Ads
How much do Google local service ads cost?
The cost per lead varies depending on your industry and location, but for services like roofing or plumbing, the average cost ranges from $20 to $60 per lead. For legal services, it typically ranges from $80 to $100 per lead. You can set your weekly budget, and Google will stop showing your ad when you reach your cap.
Can I run LSAs and Google Ads at the same time?
Absolutely! In fact, we recommend it. LSAs can handle high-intent leads, while Google Ads can still drive traffic to your website and help build brand awareness.
What happens if I get a bad lead?
You can dispute leads that are not valid (for example, someone outside your service area or looking for a service you don’t offer). Google will review and may issue a refund.
Do LSAs work for all local businesses?
Not yet. If you are a restaurant, clothing shop, or e-commerce store, Google local business ads or standard search ads may be a better fit.
Final Thoughts: Should You Try Local Services Ads?
If you're a service-based business in a supported industry, Google Local Services Ads are absolutely worth exploring. They give you premium visibility at the top of search results, build instant trust with Google badges, and only charge you when a potential customer actually reaches out. It’s one of the most efficient ad platforms out there if you can get it set up correctly.
But here’s the catch: getting started is more complex than most businesses expect. You’ll need to complete detailed paperwork, verify business licenses and insurance, go through background checks, set up your profile with Google’s specific requirements, and then figure out how to rank well enough to actually get leads. Even one small misstep in setup can delay approval or limit your visibility.
We’ve seen many businesses get stuck in review limbo, waste money on low-quality leads, or give up before they even launch.
That’s where we come in. We’ll handle the setup, get you verified, and make sure your profile is built to perform so you can start generating real leads without the headaches.
Real LSA Results from Quality Care Roofing:
One of our clients, Quality Care Roofing, generated 45 qualified leads in just one month at a cost of $32.60 per lead with an ad spend of $1,466.80. These leads translated into over $125,000 in revenue that month. Our team handled the entire setup and optimization process so they could focus on closing deals, not chasing down leads. Want results like that? Let’s chat! We’ll help you get up and running with zero guesswork.
Considering Local Services Ads? Talk to Tactycs
Are you already using LSAs? Want to give it a try? Not sure how they work or how much they cost in your area? Tactycs is here to help you get set up with Local Services Ads so you can start turning google searches into real leads.
Ready to stand out at the top of Google? Contact Us today and let’s get started.