Home / Marketing Services / Google Ads & LSA

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.

$53

average cost per lead on Local Services Ads for home services

SearchLight, 888 contractors, Feb 2026

$104

average blended cost per lead on standard Google Ads, for comparison

SearchLight Google Ads benchmark

7.84x

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

Local Services Ads
Northline Electric

Google Guaranteed ★★★★★ 4.9 (212)

Call

Harbor Electrical Co.

Google Guaranteed ★★★★★ 4.8 (146)

Call

Search ads

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.

Map pack
Electricians in your area

★★★★★ 4.7 · Open now · 2.1 mi

Three listings, driven by your Business Profile

Organic

Electrical Services — Panel Upgrades, Rewiring & Repair

yourlocalelectrician.com

Residential and commercial electrical work. Serving the lakeshore since 2011.

01

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

02

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

03

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

04

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.

Changing right now

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.

AUG 2026

First wave. US home service categories begin migrating.

LATE 2026

Remaining US accounts follow.

2027

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.

Local Services Ads

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

Google Ads (PPC)

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.

$53

Cost per lead

What you paid to make the phone ring. Where most agencies stop reporting.

43.9%

Book rate

How many of those leads became scheduled work. Speed of response drives this more than anything.

$233

Cost per customer

The real acquisition cost once unbooked leads are accounted for.

7.84x

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

01

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.

02

Tracking first

Nothing gets optimised before conversions are measured properly. Most accounts we inherit are not tracking calls correctly.

03

Build and launch

LSA profile, campaign structure, negatives, and landing pages. Budget set against the work you can actually take on.

04

Manage and report

Weekly adjustments, monthly reporting on booked jobs. Disputes filed as they come in, not quarterly.

Common questions

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.

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.

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.

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.

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.

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.

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.

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.

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.