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Google Ads & Local Services Ads
Show up first, and only pay when someone actually reaches out
Local Services Ads sit above everything else on the page and charge you per lead, not per click. Google Ads reaches everyone LSA cannot. Run correctly, they cost less together than either does alone.
We manage both, and we report on cost per booked job rather than cost per click.
- Google Ads and LSA managed together
- Reporting tied to booked jobs
- Michigan based, clients nationwide
average cost per lead on Local Services Ads for home services
SearchLight, 888 contractors, Feb 2026
average blended cost per lead on standard Google Ads, for comparison
SearchLight Google Ads benchmark
closed return on ad spend across the same LSA dataset
126,650 tracked leads
Anatomy of a search
Four things can appear when someone searches for you
Most business owners think of this as one thing called “Google.” It is four separate placements with four different price models, and only two of them are things you can buy.
electrician near me⚲
Google Guaranteed ★★★★★ 4.9 (212)
Call
Google Guaranteed ★★★★★ 4.8 (146)
Call
Sponsored
Licensed Electrician Near You | Same-Day Service
yourlocalelectrician.com/emergency
24/7 emergency callouts. Licensed and insured. Free estimates on panel upgrades and rewiring.
★★★★★ 4.7 · Open now · 2.1 mi
Three listings, driven by your Business Profile
Electrical Services — Panel Upgrades, Rewiring & Repair
yourlocalelectrician.com
Residential and commercial electrical work. Serving the lakeshore since 2011.
Local Services Ads
Top of the page, above everything. Google Guaranteed badge, star rating, and a call button. No website link. The lead comes to you as a call or message.
Pay per lead
Search ads (PPC)
Keyword-targeted text ads. You control the copy and the landing page, and you can reach searches LSA categories do not cover.
Pay per click
Map pack
Three local listings driven by your Google Business Profile, reviews, and proximity. Not paid, but the same profile powers your LSA.
Earned · local SEO
Organic results
The classic blue links. Slowest to earn and the cheapest per lead once they hold.
Earned · SEO
Placements one and two are what we manage here. Three and four are covered under SEO and AI search visibility, and all four draw on the same Business Profile, which is why we would rather run them together than in isolation.
Local Services Ads are being folded into Google Ads
Google confirmed in July 2026 that the standalone LSA dashboard is going away and LSA is moving into the main Google Ads platform. The first migration wave started in August 2026 for US home service categories: plumbing, HVAC, electrical, appliance repair, house cleaning, lawn care, roofing, pest control, and moving.
The pay-per-lead model survives the move. That was the open question, and it is the answer that matters. You still pay when someone calls or messages, not when they click.
What changes is where you manage it, how budgets and reporting are structured, and how easy it becomes to run LSA and search campaigns as one system. If you are running LSA yourself out of the old dashboard, this is the moment worth getting help with.
First wave. US home service categories begin migrating.
Remaining US accounts follow.
International accounts migrate.
Which one, and when
They are not competitors, they cover different gaps
The honest answer for most local service businesses is both, weighted toward LSA. Here is how they actually differ.
Pay per lead
Best for straightforward, high-intent local service calls.
You pay for
Calls and messages
Typical cost
$25–$90 per lead
Position
Above all other results
Requires
Licence, insurance, background check
Creative control
Minimal, profile driven
Bad leads
Disputable and creditable
Pay per click
Best for reach, control, and anything LSA categories exclude.
You pay for
Clicks, converting or not
Typical cost
$104 blended per lead
Position
Below LSA, above organic
Requires
Advertiser verification only
Creative control
Full, including landing page
Bad leads
You absorb the cost
The number that matters
Cost per lead is the vanity metric of paid ads
A $53 lead you never book costs more than a $90 lead you close. Here is the chain we actually report on, using published benchmark figures as a reference point.
Cost per lead
What you paid to make the phone ring. Where most agencies stop reporting.
Book rate
How many of those leads became scheduled work. Speed of response drives this more than anything.
Cost per customer
The real acquisition cost once unbooked leads are accounted for.
Closed ROAS
Revenue from booked work against ad spend. The only figure that answers whether it worked.
One finding from that dataset is worth acting on immediately, whether or not you hire anyone: contractors who answer within an hour book 31% of calls, against 15% for next-day callbacks. Doubling your book rate costs nothing.
What we manage
LSA profile and verification
Licence and insurance documentation, background check, categories, and service areas set so you appear for the right jobs.
Budget and bid strategy
Weekly budgets set against your capacity, not against a number that sounded right. Adjusted as booking rates move.
Lead disputes
Out-of-area calls, wrong numbers, and duplicate contacts submitted for credit. Left alone, this is money quietly lost every month.
Search campaign build
Keyword research, match type discipline, negative keyword lists, and ad groups tight enough that the copy can be specific.
Ad copy and testing
Multiple variants per ad group, tested against conversions rather than clicks.
Landing page alignment
Where the click lands has to match what the ad promised. We fix the mismatch, and can build the page if it does not exist.
Conversion tracking
Call tracking, form tracking, and offline conversion import so booked jobs feed back into the platform.
Review generation
Rating and volume determine LSA position. A 4.8 average is roughly the floor for the top three spots.
Reporting you can act on
Leads, book rate, cost per booked job, and what we changed. Monthly, in plain language.
Who this works for
Best fit
Licensed home services
Plumbing, HVAC, electrical, roofing, cleaning, lawn care, pest control. These are the categories LSA was built for, and where the pay-per-lead economics are strongest.
Strong fit
Professional services
Legal, financial, real estate, and medical run on Google Screened rather than Google Guaranteed. Lead costs are higher, but so is the value of a case or client.
Search ads only
Everyone else
Retail, e-commerce, B2B, nonprofits, and trades outside LSA categories. No LSA available, so the work is search, display, and landing pages.
How it connects
Paid ads are the fastest lever you have and the most expensive to rely on forever. The point is to use them to buy time while the cheaper channels build.
SEO & AI search
Your Business Profile powers LSA, the map pack, and increasingly what assistants say about you. One asset, three surfaces. Businesses running both generate more leads at a lower blended cost than either alone.
SEO & AI search visibility →
Your website
Every search ad click lands on a page. If that page is slow or vague, you paid for the click and got nothing. Landing page quality also affects what Google charges you per click.
Web design & development →
Proof and reviews
Star rating and review volume decide LSA position outright. Reviews are not a nice-to-have here, they are a ranking input you can influence directly.
See our work →
How we start
Account audit
What you are spending, what it is returning, and what is being wasted. You get the findings whether or not you hire us.
Tracking first
Nothing gets optimised before conversions are measured properly. Most accounts we inherit are not tracking calls correctly.
Build and launch
LSA profile, campaign structure, negatives, and landing pages. Budget set against the work you can actually take on.
Manage and report
Weekly adjustments, monthly reporting on booked jobs. Disputes filed as they come in, not quarterly.
Common questions
What is the difference between Local Services Ads and Google Ads?
Local Services Ads charge per lead and appear above everything else on the results page, showing your business name, star rating, review count, and a Google Guaranteed badge with a call button. There is no website link and no ad copy to write.
Google Ads charges per click, appears below LSA, and gives you full control over keywords, ad copy, and the page people land on. LSA is limited to specific service categories and requires licence, insurance, and a background check. Google Ads works for any business and requires only advertiser verification.
How much do Local Services Ads cost?
Benchmark data from 888 home service contractors covering $6.72 million in tracked spend put the average LSA cost per lead at roughly $53 in early 2026, with most trades falling between $25 and $90.
By category, electrical and cleaning tend to run lower, HVAC and plumbing sit in the middle, and roofing and restoration run higher. Professional services are wider still, with legal often between $50 and $150 depending on practice area.
Your actual cost depends on your trade, your market density, and how well the profile is managed. We will estimate a realistic range for your situation before you commit budget.
Are LSA leads cheaper than Google Ads leads?
On the same benchmark dataset, yes, by roughly half. LSA averaged $53 per lead against $104 blended for Google Ads, and $149 for non-branded Google Ads specifically.
That is not the whole story though. LSA leads arrive as phone calls with no qualification beyond your category and service area, so some will be for work you do not want. Search ads let you target much more precisely, which can mean fewer but better-matched leads. The right comparison is cost per booked job, not cost per lead.
Is Google moving Local Services Ads into Google Ads?
Yes. Google announced in July 2026 that the standalone LSA dashboard is being retired and LSA is folding into the main Google Ads platform. The first wave began in August 2026 with US home service categories, the rest of the US follows in late 2026, and international accounts move in 2027.
The important part is that the pay-per-lead billing model survives the migration. You still pay when someone contacts you, not when they click. What changes is the management interface and how budgets and reporting are structured.
Can I get credit for bad LSA leads?
Yes, and it is one of the most commonly ignored parts of running LSA. Google will credit back leads that do not count: calls from outside your service area, wrong numbers, spam, and repeat contacts from the same customer.
Disputes have to be filed, and they have deadlines. Businesses managing their own LSA typically file few or none, which quietly inflates their real cost per lead. We file them as they come in.
How do I rank higher in Local Services Ads?
Position is driven by review rating and volume, proximity to the searcher, responsiveness to leads, your budget, and your business hours. A 4.8-star average is roughly the unofficial floor for consistently placing in the top three.
Responsiveness is the lever most businesses underuse. Answering quickly improves both your placement and your booking rate, and it costs nothing.
How much should I budget to start?
Work backwards from capacity rather than picking a number. If you can take on ten new jobs a month and your book rate is around 40%, you need roughly 25 leads. At a $53 average that is about $1,325 in ad spend.
We would rather start smaller and scale once tracking proves the numbers than launch a large budget into an account with no conversion data. Management fees are quoted separately from ad spend, and we will tell you plainly if your budget is too small for the channel to work.
Do I need a website to run Local Services Ads?
Not strictly. LSA listings do not link to a website, so you can run them without one.
You will convert worse without one, though. People check you out before calling, and increasingly they check you out somewhere other than Google. You also cannot run search ads without a landing page. If a site is the missing piece, that is something we build.
Do you work with businesses outside Michigan?
Yes. We are Michigan based and manage accounts for clients nationwide. Paid search is location-agnostic on our end; what matters is your market, your category, and your capacity.
Find out what your leads actually cost
We will audit your Google Ads and LSA accounts, show you what is being wasted, and estimate a realistic cost per booked job. You keep the findings either way.
