Google Local Services Ads: How To Set Up & Get Leads

If you run a local business and want to appear at the very top of Google search results, above traditional ads and organic listings, Google Local Services Ads offer one of the most direct paths to get there. These ads connect you with potential customers who are actively searching for services you provide, and you only pay when someone actually contacts you.

For local business owners, this changes the game. Instead of spending money on impressions or clicks that may never convert, you're paying for actual leads. Whether you're a law firm, plumber, orthodontist, or any other local service provider, LSAs put your business in front of people ready to hire, complete with a Google Guaranteed or Google Screened badge that builds instant trust.

At Wilco Web Services, we help local businesses generate more qualified leads through strategic advertising and local SEO. We've seen firsthand how properly configured Local Services Ads can dramatically increase phone calls and client inquiries when combined with a strong overall digital presence.

This guide walks you through everything you need to know: how Google Local Services Ads work, which businesses qualify, how to set up your account step by step, and how to optimize your ads for maximum lead generation. By the end, you'll have a clear roadmap to start capturing high-intent local leads through one of Google's most powerful advertising tools.

How Google Local Services Ads work

Google Local Services Ads appear at the very top of search results when someone searches for local services in your area. These ads show up above traditional Google Ads, above the map pack, and above all organic results. When a potential customer types "plumber near me" or "personal injury lawyer in [city]," your business can be one of the first three providers they see, complete with your photo, ratings, and a trust badge.

Where LSAs appear in search results

You'll find Local Services Ads in a horizontal carousel format that dominates the top of the search page. Each ad displays your business name, star rating, years in business, and the number of reviews you've received. The ads also show your service areas and hours of operation at a glance. Users can click your ad to view your full profile, read customer reviews, or contact you directly through a phone call or message button.

The placement gives you maximum visibility during the exact moment someone needs your services. Unlike traditional advertising where you hope to catch attention, these ads appear when purchase intent is highest. Your potential customers are actively looking to hire, not just browsing or researching.

The pay-per-lead model explained

Google Local Services Ads use a pay-per-lead pricing model instead of the pay-per-click system used by Google Ads. You only pay when a potential customer contacts you directly through the ad by calling, messaging, or booking an appointment. This means every dollar you spend goes toward actual customer inquiries, not just website visits or accidental clicks.

Lead costs vary by industry and location. A plumber in a competitive market might pay $15 to $50 per lead, while an attorney could pay $50 to $200 or more. You set a weekly budget that controls your maximum spending, and Google stops showing your ads once you hit that limit. The system automatically adjusts your ad visibility based on your budget and the lead volume in your area.

Local Services Ads eliminate wasted ad spend by charging only when customers make contact, not when they simply view or click your ad.

Google Guaranteed and Google Screened badges

Your Local Services Ad will display either a Google Guaranteed badge (green checkmark) or a Google Screened badge (blue checkmark), depending on your industry. The Google Guaranteed badge applies to home service providers like plumbers, electricians, and HVAC technicians. If a customer isn't satisfied with your work, Google may refund up to the amount paid for services booked through the platform, subject to their terms.

Professional services such as lawyers, financial planners, and real estate agents receive the Google Screened badge instead. This badge indicates you've passed background checks and license verification, but it doesn't include the same money-back guarantee. Both badges build immediate trust with potential customers who see your ad.

To earn either badge, you must complete background checks, license verification, and insurance verification. Google reviews your business information, checks for any legal issues, and confirms you maintain proper credentials for your industry. This verification process separates legitimate businesses from unreliable ones.

How leads reach you and what happens next

When someone contacts you through a Local Services Ad, the lead comes directly to you via phone call or message through the Google platform. You'll receive the customer's name, contact information, and details about their service needs. The Google LSA app and dashboard track all incoming leads so you can respond quickly and manage your pipeline.

Response time matters significantly for conversion rates. Customers often contact multiple providers simultaneously, and the business that responds first usually wins the job. You should aim to respond within minutes rather than hours to maximize your chances of turning leads into paying customers. Fast response times also improve your ad ranking and help you appear more frequently in the LSA carousel.

Check eligibility and required documents

Before you invest time setting up Google Local Services Ads, you need to verify that your business type qualifies for the program and that you can provide the required documentation. Google restricts LSAs to specific service categories where background checks and license verification make sense. You'll also need to gather several documents proving your credentials, insurance coverage, and business legitimacy before Google approves your account.

Eligible business categories

Google Local Services Ads currently support home service providers and professional services across dozens of categories. Your eligibility depends entirely on whether your business fits within Google's approved list. Home services include plumbers, electricians, HVAC technicians, locksmiths, pest control, house cleaners, and general contractors. Professional services cover lawyers, real estate agents, financial planners, tax professionals, and similar licensed experts.

The available categories vary by location. A service category active in California might not be available yet in smaller markets. You can check your specific eligibility by visiting the Google Local Services Ads website and entering your business type and service area. The system will immediately tell you whether your category qualifies in your location.

Google adds new service categories regularly, so check back if your business type isn't eligible yet.

Required documentation checklist

You'll need to provide several types of documentation during the verification process to earn your Google Guaranteed or Google Screened badge. The exact requirements depend on your industry, but most businesses need to submit proof of licensing, insurance coverage, and business registration. Gather these documents before you start your application to speed up the approval process.

Your documentation checklist typically includes:

• Business license: Current license showing you're authorized to operate in your state or municipality

• Professional licenses: Trade-specific licenses (contractor license, law license, real estate license, etc.)

• Insurance certificates: General liability insurance with minimum coverage amounts (often $1 million or more)

• Workers' compensation insurance: Required if you have employees in most states

• Business entity documents: Articles of incorporation, DBA registration, or business formation paperwork

• Background check authorization: Signed consent for Google to run background checks on owners and key employees

• EIN or tax ID: Federal tax identification number for your business

Professional services such as attorneys need to provide bar association numbers and good standing certificates, while contractors must show active contractor licenses with proper bonding. Upload clear, legible copies of all documents as PDFs or high-quality images. Expired licenses or incomplete insurance information will delay your approval by weeks.

Set realistic budgets and understand lead costs

Setting your budget for Google Local Services Ads requires understanding what leads actually cost in your industry and how many leads you need to generate revenue. You can't simply pick a random number and hope for the best. Your budget needs to account for lead costs, conversion rates, and your profit margins to ensure you generate positive returns without burning through cash on leads you can't close.

Industry-specific lead cost ranges

Lead costs vary dramatically based on your service category and geographic market. A plumber in a small town might pay $15 to $30 per lead, while a personal injury attorney in Los Angeles could pay $150 to $300 or more for a single inquiry. Understanding these ranges helps you avoid budget shock when you launch your campaigns.

Home service businesses typically see lower lead costs than professional services. You can expect to pay $10 to $50 per lead for trades like electrical work, HVAC repair, locksmith services, and pest control. House cleaning and landscaping often fall on the lower end, while specialized contractors command higher prices. Professional services face steeper costs because the potential transaction value runs much higher.

Here's what typical lead costs look like across common categories:

Service Category	Typical Lead Cost Range
Plumbing	$15 - $40
HVAC	$20 - $50
Electrician	$15 - $45
House Cleaning	$10 - $25
Personal Injury Attorney	$100 - $300
Family Law Attorney	$75 - $200
Real Estate Agent	$30 - $80
Financial Planning	$50 - $150

Lead costs correlate directly with lifetime customer value, so higher costs often indicate more profitable services.

How to calculate your starting budget

Start by determining how many customers you need and working backward to find your required budget. If your average customer brings in $500 in profit and you close 20% of your leads, you can spend up to $100 per lead and break even. To make $5,000 monthly profit at these numbers, you need 10 customers, which means 50 leads, requiring a $5,000 budget.

Your weekly budget should support at least 5 to 10 leads minimum to gather meaningful data. If leads cost $30 in your market, set your weekly budget at $150 to $300 to start. You can always increase spending once you verify your conversion rates and profit margins with real performance data. Many businesses start with $500 to $1,000 weekly budgets and adjust based on results.

Track these metrics to refine your budget over time: total leads received, leads you actually contacted, leads that converted to quotes, and quotes that turned into paying customers. Calculate your cost per customer by dividing total ad spend by customers acquired. If that number stays below your profit margin, increase your budget to capture more market share.

Step 1. Create or connect your Google Business Profile

Your Google Business Profile serves as the foundation for your Local Services Ads account. You cannot run LSAs without an active, verified Google Business Profile in the same service areas where you want to advertise. Google uses your GBP information to populate key details in your ads, verify your business legitimacy, and ensure customers can find accurate information about your services and location.

Why your GBP matters for LSAs

Google pulls critical data directly from your Business Profile into your Local Services Ads, including your business name, address, phone number, service areas, and hours of operation. Any inconsistencies between your GBP and your LSA application will delay approval or cause rejection. Your profile also influences local search rankings and map pack visibility, creating a compound effect that drives more organic traffic alongside your paid leads.

A verified, optimized Google Business Profile increases both your LSA approval chances and overall local visibility.

Creating a new profile step by step

If you don't have a Google Business Profile yet, you'll create one during the LSA setup process. Google provides an integrated workflow that guides you through profile creation before you complete your ad account. You'll need your business name, physical address, primary phone number, and business category to get started.

Follow these steps to create your profile:

1. Visit the Google Business Profile website and click "Manage now"

2. Enter your exact business name as it appears on your licenses and legal documents

3. Select your primary business category from Google's list (choose the most specific option available)

4. Add your business address or specify that you serve customers at their locations

5. Provide your primary business phone number (use a local number, not a call tracking number)

6. Verify your business through postcard, phone, email, or instant verification if eligible

7. Complete your profile with photos, services, hours, and business description

Connecting an existing profile

When you already have a verified Google Business Profile, the LSA setup process will automatically detect and connect to your existing profile using your Google account. You'll see a prompt asking you to confirm this is the correct business location. Click confirm and Google will import your profile data directly into your LSA account.

Check that your existing profile contains accurate, complete information before connecting it. Update your business hours, service areas, phone number, and photos if anything has changed. Your profile must show consistent information across all fields to pass the verification process. Any discrepancies between your profile and your license documents will trigger manual review and delays.

Step 2. Build your LSA profile and service areas

Once you connect your Google Business Profile, you'll move into the profile building stage where you define exactly what services you offer and where you provide them. This step determines which searches trigger your ads and how potential customers perceive your business when they view your listing. Your profile details influence both your ad visibility and your conversion rates, so take time to complete every field accurately and strategically.

Fill out your business profile details

Your LSA profile requires more detailed information than your standard Google Business Profile. You'll specify individual services, set your business description, upload photos, and provide proof of insurance and licensing. Start by selecting all specific services you want to advertise from Google's predefined list for your category. If you're a plumber, you'll choose from options like drain cleaning, water heater repair, pipe installation, and emergency services.

Write a compelling business description that explains what makes your company different without resorting to generic claims. Instead of "high-quality service," describe your response time ("we respond within 2 hours"), your experience ("serving Georgetown for 15 years"), or your specialty ("we focus exclusively on commercial HVAC systems"). Your description appears in your expanded profile view where customers decide whether to contact you.

Upload at least five high-quality photos showing your team, your work, your vehicles, and your completed projects. Include photos of actual team members rather than stock images. Customers trust businesses that show real people and real work. Add your business hours and specify whether you offer 24/7 emergency services if applicable. These details help customers determine if you can meet their timeline.

Complete profiles with multiple photos and detailed service descriptions generate 30% more leads than minimal profiles with only required fields.

Define your service areas strategically

Google Local Services Ads require you to specify exact cities, ZIP codes, or radius distances where you want to appear in search results. You can serve customers outside these areas, but your ads only show to searchers within the boundaries you define. Choose areas where you can respond quickly and compete effectively rather than covering the maximum possible territory.

Set your service areas based on these factors:

• Drive time: Only include areas you can reach within your typical response window

• Competition level: Expand into less competitive suburbs if urban markets drive costs too high

• Lead quality: Focus on areas with higher average transaction values or better conversion rates

• Profitability: Exclude distant areas where travel time and costs eat into margins

You can adjust your service areas at any time as you gather data on lead quality and conversion rates from different locations. Start with a focused area where you have existing customers and brand recognition, then expand gradually into new territories. Many businesses make the mistake of casting too wide initially, which spreads their budget thin across areas where they lack competitive advantage.

Step 3. Complete verification and get approved

After you build your profile and define your service areas, Google begins the verification process to determine whether you qualify for a Google Guaranteed or Google Screened badge. This step involves background checks, license verification, and insurance review that typically takes 5 to 10 business days to complete. You cannot run Google Local Services Ads until Google approves your business, so respond quickly to any requests for additional documentation.

Submit required documents and start verification

You'll upload your business documents directly through the LSA dashboard during the application process. Google requires clear, legible copies of all licenses, insurance certificates, and business formation documents. Save your documents as PDFs or high-resolution images before you start uploading to avoid delays caused by unreadable files.

The system will prompt you to upload specific documents based on your business category:

• Professional licenses: Upload active licenses showing current expiration dates and license numbers

• Insurance certificates: Provide certificates of insurance with coverage amounts and policy dates visible

• Business formation documents: Submit your articles of incorporation, DBA registration, or sole proprietor documentation

• Background check consent: Sign authorization forms for all business owners and managers

Google also runs automated checks against public databases to verify your license status and search for any regulatory violations or legal issues that might disqualify you from the program. They check state licensing boards, court records, and business registries to confirm you maintain proper credentials and good standing in your industry.

Background checks typically complete within 3 to 5 business days, but license verification can take longer if Google needs to contact your state licensing board directly.

Track your approval status and handle rejections

You can monitor your verification progress through the LSA dashboard or the Google Local Services app. The dashboard shows which verification steps remain incomplete and whether Google needs additional information or documentation from you. Check your email daily during the verification period because Google sends requests for missing documents via email with specific deadlines.

If Google rejects your application, you'll receive an email explaining the specific reason for denial. Common rejection causes include expired licenses, insufficient insurance coverage, discrepancies between your business name and legal documents, or background check issues. You can appeal rejections by submitting updated documents that address the stated problems. Fix the underlying issue before you reapply to avoid repeated rejections that delay your launch by weeks.

Step 4. Launch ads and handle leads fast

Once Google approves your verification, you can activate your ads and start receiving leads immediately. The system switches on quickly, but you need to prepare your lead handling process before you launch to avoid missing time-sensitive inquiries. Set up your notification preferences, establish response protocols, and train anyone who will answer calls or messages so you can convert leads into customers at the highest possible rate.

Activate your ads and set your schedule

You activate your Google Local Services Ads through the LSA dashboard by clicking the "Turn on ads" button after your verification completes. Your ads typically start appearing in search results within 30 minutes to 2 hours of activation. Before you flip the switch, configure your ad schedule to match when you can actually respond to customers. You'll find the schedule settings under "Business hours" where you can specify different hours for different days.

Set your availability status accurately because customers expect immediate responses when they contact you during your advertised hours. If you display availability 24/7 but don't answer calls at midnight, you'll pay for leads you can't close and damage your response rate metrics. Many businesses start with conservative hours during their peak staffing times, then expand availability once they establish a reliable lead response system.

Respond to leads within minutes

Speed determines your conversion rate more than any other factor when handling Google Local Services Ads leads. Customers contact multiple providers simultaneously, and the business that responds first usually wins the job. You should aim to respond within 5 minutes for calls and within 15 minutes for messages. Download the Google Local Services app on your phone so you receive instant push notifications for every new lead.

When you answer calls, follow this response framework:

1. Greet the customer and confirm their service need immediately

2. Ask qualifying questions about timing, location, and project scope

3. Provide a clear next step (schedule estimate, dispatch technician, book appointment)

4. Send a follow-up text or email within 10 minutes with your contact details

Businesses that respond to LSA leads within 5 minutes convert at rates 3 to 5 times higher than those that wait an hour or more.

Track and qualify leads in the dashboard

The LSA dashboard shows every lead with the customer's name, phone number, and service request details. You can mark leads as booked, not interested, or disputed directly in the system. Dispute leads when customers contacted you by accident, submitted duplicate requests, or were clearly outside your service area. Google reviews disputes and refunds your lead cost when they approve the claim.

Track which service types generate the highest quality leads and adjust your budget allocation accordingly. If emergency plumbing calls convert at 40% while routine maintenance requests convert at 15%, you might increase bids for emergency services or adjust your profile to emphasize your emergency availability.

Optimize ranking and quality in the LSA pack

Your position within the Google Local Services Ads carousel directly impacts how many leads you receive, and that position changes constantly based on performance metrics. Google doesn't simply rotate businesses randomly or show ads based on who pays the most. The system ranks providers using response rate, review quality, proximity to the searcher, and overall account health. You can control most of these factors through consistent optimization and attention to detail.

How LSA ranking factors work

Google evaluates your business against multiple ranking signals to determine where you appear in the Local Services Ads pack. Response speed and rate carry the most weight, followed by review count and average rating, then business hours and service area coverage. Your weekly budget affects how often you appear but doesn't override quality metrics. A business with excellent response rates and strong reviews will outrank a competitor with a larger budget but poor performance.

The algorithm also considers proximity to the searcher when multiple qualified businesses compete for the same position. If two plumbers have identical ratings and response rates, Google shows the one closer to the customer's location first. You can't change your distance from customers, but you can improve the controllable factors that matter more. Focus your optimization efforts on maintaining a response rate above 90% and securing consistent five-star reviews from satisfied customers.

Businesses ranking in the top three positions receive 75% of all Local Services Ads leads in their market.

Improve your response metrics

Your response rate measures what percentage of leads you actually contact within the timeframe Google expects. Missing calls or ignoring messages tanks your ranking faster than any other single factor. Set up the Google Local Services app on multiple devices and enable notifications so you never miss an inquiry. If you can't answer immediately, return calls within 15 minutes maximum to maintain strong response metrics.

Track your response rate weekly in the LSA dashboard under the performance section. Google highlights your current rate and shows how it compares to top-performing businesses in your category. If your rate drops below 80%, you'll see decreased ad visibility within days. Use call forwarding to backup numbers when your primary line gets busy, and configure message auto-replies that acknowledge receipt and promise a callback time.

Build reviews and ratings strategically

Your review count and average rating influence both your ranking position and your conversion rate. Customers trust businesses with 50+ reviews significantly more than those with only 5 or 10 ratings. Ask every satisfied customer to leave a review through Google Local Services Ads specifically, not just on your Google Business Profile. LSA reviews carry more weight for ad ranking because they come from verified customers who booked through the platform.

Send review requests within 24 hours after completing the job while the positive experience remains fresh in the customer's mind. You can request reviews directly through the LSA dashboard by clicking on completed jobs and selecting "Request review." The system sends an automated email to the customer with a direct link to leave feedback. Respond professionally to every review, positive or negative, to show potential customers you value feedback and resolve issues when they arise.

Next steps for your lead pipeline

You now have a complete roadmap to launch Google Local Services Ads and start generating qualified leads for your local business. The setup process requires attention to detail during verification, but once approved, you gain access to high-intent customers who are actively searching for your services right now. Focus on maintaining fast response times and building your review count to improve your ranking position and conversion rates over time.

Google Local Services Ads work best as part of a comprehensive digital marketing strategy that includes local SEO, a conversion-focused website, and strategic advertising across multiple channels. Your LSA leads need somewhere to land after initial contact, and your website serves as the credibility foundation that turns inquiries into paying customers. If you want to maximize your local visibility and build a consistent lead pipeline beyond paid ads alone, Wilco Web Services helps local businesses create integrated marketing systems that drive measurable growth through SEO, web design, and targeted advertising campaigns.