Guides
Google Local Service Ads: Complete Guide
On this page
Local Service Ads sit above everything else on a Google results page — above the map pack, above paid search — and you're charged per lead rather than per click. For eligible trades it's usually the lowest cost per lead available. This guide covers what changed in 2026, how verification actually works, and what determines your position.
Start with the change most pages haven't caught up on.
What changed in 2026?
If a page you're reading mentions "Google Guaranteed," it's out of date.
| Change | Detail | When |
|---|---|---|
| Badges consolidated | Google Guaranteed, Google Screened and License Verified became a single Google Verified badge | October 2025 |
| Money-back guarantee discontinued | The consumer guarantee attached to Google Guaranteed no longer exists | October 2025 |
| Policies renamed | "Local Services platform policies" became "Local Services Ads requirements" — terminology cleanup and removal of outdated rules, with no new advertiser restrictions | July 6, 2026 |
| Ranking unaffected | Google confirmed the badge change did not alter ad ranking. Responsiveness and review rating still drive position | — |
Practical consequence: if your website, vehicle wraps, business cards or ad copy still reference Google Guaranteed or the money-back guarantee, they need updating. That guarantee no longer exists and claiming it is a problem.
Source: ALM Corp — Local Services Ads Requirements Update, July 2026
Who's eligible?
LSA covers a restricted set of categories. Home services are well represented — HVAC, plumbing, roofing, electrical, restoration, garage doors, pest control, and others. Legal is covered through what was Google Screened. Many categories aren't included at all.
Beyond category, you need to pass verification, which is the real gate.
How does verification work?
Budget three to four weeks, and start it before anything else because nothing runs during it.
You'll need to provide:
- Background checks on business owners and, depending on industry, field workers
- Licence verification appropriate to your trade and service area
- Proof of active insurance
- A maintained Google Business Profile
Badges then renew annually. Set a calendar reminder — a lapsed badge means your ads stop, and the reinstatement is slower than the renewal would have been.
The most common delay is licence or insurance documentation that doesn't exactly match the business name on the account. Check that they match before submitting.
How is LSA position determined?
Four factors, and only one is money.
| Factor | Weight | Your control |
|---|---|---|
| Review rating and volume | Heaviest | High — and it's free |
| Responsiveness | High | High — answer the phone |
| Proximity to the searcher | Moderate | Low |
| Budget | Determines frequency once eligible | High |
Budget does not buy you past a weak review profile. A business with 200 reviews at 4.8 and a $1,500 budget will generally outperform one with 25 reviews and $5,000.
This is the single most useful thing to understand about the channel, and it's why we'd rather grow a client's reviews than their spend. See the review generation guide — it's free and takes an afternoon to automate.
Responsiveness matters more than people expect. Google tracks whether you answer. A pattern of missed calls costs you position, which means the same budget buys less.
What does LSA cost?
You're billed per lead, at a rate that varies by category and market.
Minimum viable budget is about $1,000/month. Below that, lead volume is too low for the numbers to stabilise and one bad week distorts your whole read on the channel.
Model your own returns with the LSA ROI calculator.
Disputing bad leads
This is free money most contractors leave on the table.
You can dispute and get refunded for:
- Wrong numbers and misdials
- Spam and solicitation calls
- Calls from outside your service area
- Enquiries for services you don't offer
- Calls where nobody was on the line
File weekly. It takes fifteen minutes and materially changes your effective cost per lead. Most businesses never file at all and quietly pay for junk indefinitely — if that's you, the first month of disputing usually surprises people.
Not disputable: a lead you simply failed to convert. That's a sales problem, not a billing one.
What usually goes wrong
Missing calls. The worst possible failure, because it costs you the job and your ranking. Responsiveness is a ranking factor.
Never disputing. Paying for wrong numbers for years.
Weak review profile. Buying budget instead of building the thing that actually determines position.
Letting the badge lapse. Annual renewal, and ads stop when it expires.
Expecting unlimited scale. LSA inventory is finite. Once you're capturing available demand, more budget produces nothing — that's the point to add Google Ads.
Stale marketing materials. Anything still claiming Google Guaranteed or the money-back guarantee.
Running it yourself
Genuinely doable for a single-location business.
| Cost | |
|---|---|
| LSA account | Free to set up |
| Background checks | Usually covered by Google's process |
| Media spend | $1,000+/month |
| Your time | 3–4 hours setup, then 30 mins/week for disputes and budget |
Where an agency earns its fee: dispute discipline, budget pacing against seasonality, coordinating LSA with paid search so you're not bidding against yourself, and review programme management. None of it is magic — it's consistency.
If you'd rather hand it over, that's $950/month flat, with no percentage of your ad spend.
Frequently asked questions
How long does Google Verified verification take?
Typically three to four weeks. It involves background checks on owners and field workers depending on industry, licence verification, proof of active insurance, and a maintained Google Business Profile. Badges renew annually.
What happened to the Google Guaranteed badge?
It was consolidated into a single Google Verified badge in October 2025, along with Google Screened and License Verified. The money-back guarantee that came with Google Guaranteed was discontinued at the same time. Marketing materials still referencing it need updating.
How much do Local Service Ads cost?
You pay per lead rather than per click, at a rate varying by category and market. Minimum viable budget is around $1,000 a month, below which volume is too low for results to stabilise.
Can I dispute bad LSA leads?
Yes — wrong numbers, spam, out-of-area calls and services you don't offer are all disputable and refundable. File weekly. Most businesses never file and pay for junk indefinitely.
Why aren't my Local Service Ads showing?
Common causes: verification incomplete, badge lapsed at annual renewal, budget exhausted for the period, or you're outside the searcher's proximity. If budget isn't spending at all, you may have reached available inventory.
How do I rank higher in LSA?
Improve review rating and volume, and answer the phone. Those two outweigh budget. Proximity you can't control, and money doesn't compensate for a weak review profile.
Is LSA better than Google Ads?
For eligible trades, it's usually the better first channel — lower cost per lead, top of page. But inventory is finite and targeting control is minimal, so most contractors eventually run both. Full comparison here.
Do law firms qualify?
Yes, through what was Google Screened, now folded into Google Verified. Bar verification and background checks apply, and the timeline is the same three to four weeks.
Written by Jared DeValk, founder of Nashville Digital. Last reviewed September 2026. LSA requirements change regularly — this guide is updated quarterly.