Local Service Ads (LSA) can be a strong addition to regular Google Ads for local service providers: They appear in their own prominent ad unit in Google Search, you pay per valid lead instead of per click, and the "Google Verified" badge shows searchers that Google has screened your business.
This guide explains everything you need to know about LSA, including the move to Performance Max that Google starts in the US in August 2026 and has announced for accounts outside the US in 2027.
What Are Local Service Ads?
Local Service Ads are a special ad format from Google developed specifically for local service businesses. They appear:
- Prominently in Google Search, in their own ad unit
- In a separate card format with ratings and contact details
- Particularly prominent on mobile devices
Who Are Local Service Ads Suitable For?
Available Categories (UK)
For the UK, Google currently (as of September 2026) lists mainly trade and home services, including:
Trades & Repair:
- Electricians
- Plumbers
- HVAC (heating or air conditioning)
- Roofers
- Carpenters
- Flooring services
- Appliance repair, window repair, garage door services
- Water damage services
Home & Garden:
- Cleaning, carpet cleaning, window cleaning
- Moving services, junk removal
- Pest control
- Landscaping, lawn care, tree services
- Pool cleaning, snow removal
Greater London only: various lawyer services and estate agents.
The full, current list for each country is in Google's Local Services help. Locksmiths, financial advisors and accountants are not on the UK list. Categories differ by country, so check your own market. In Germany, for example, Google doesn't allow locksmith ads at all under its advertising policies.
LSA vs. Google Ads: Key Differences
| Feature | Local Service Ads | Google Search Ads |
|---|---|---|
| Placement | Own ad unit in Search | Regular ad positions |
| Payment model | Pay-per-lead (call/message) | Pay-per-click |
| Control | Low (no keyword bidding) | High |
| Verification | Google screening required ("Google Verified") | No comparable screening |
| Reviews | Directly visible | Only via assets (formerly extensions) |
| Budget | Weekly budget | Daily budget |
| Audience | Local users only | Configurable |
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Most important difference: You only pay when someone actually contacts you, not when someone clicks your ad but doesn't call.
You'll find the detailed side-by-side in the comparison Google Ads vs. Local Services Ads.
LSA Is Moving into Performance Max: The Timeline for 2026 and 2027
Google is restructuring Local Service Ads. According to Google Ads Help (as of September 2026), LSA campaigns are being transitioned to Performance Max campaigns with pay-per-lead goals. Google runs the migration automatically so that campaigns have as little downtime as possible.
The Timeline According to Google
- August 2026: first phase for select advertisers in the US, starting with home services such as plumbing, HVAC, electrical, appliance repair, house cleaning, lawn care, roofing, pest control and moving.
- Late 2026: expansion to broader advertiser groups, including service-area businesses without a physical storefront.
- 2027: accounts outside the US and all remaining business categories.
What Changes and What Stays
- Pay per lead stays: You still only pay for valid leads such as calls and messages, not for clicks.
- Verification carries over: If you've already completed verification, your verified status and the "Google Verified" badge transfer to Google Ads automatically. According to Google, insurance and licence reverification are no longer required after that.
- Lead history stays: Your past leads are transferred and remain accessible on a new Leads page in Google Ads.
- Manual bidding goes away: You can no longer set a maximum cost-per-lead yourself in Google Ads.
- Save your data first: Despite the transfer, Google explicitly recommends saving your performance data before the migration.
What This Means Outside the US
The UK counts as "outside the US", so according to Google the switch is due in 2027. The same applies to Germany, where Google offers LSA for around 30 trade and home service categories. There is no exact date for either country yet, and the help page doesn't describe what changes for these accounts until then.
From my practice, I'd do three things now:
- Save your lead data regularly, as Google recommends before the migration.
- Evaluate leads in your own CRM, so you can compare after the switch whether lead price and quality stay the same.
- Get familiar with Performance Max, because there's no maximum cost-per-lead afterwards. I explain what PMax can do and where its limits are in my Performance Max guide.
Step-by-Step: Setting Up LSA
Step 1: Check Eligibility
- Go to: ads.google.com/local-services-ads
- Enter industry and region
- System checks if LSA is available in your area/industry
Step 2: Screening for "Google Verified"
This is the most involved part, but it's a one-time process and justifies user trust. Since October 2025, the single "Google Verified" badge has replaced the older badges such as "Google Guaranteed".
What Google checks for UK home services (per Google's help, as of September 2026):
- Business check (proof of business registration)
- Public liability insurance
- Business licence, where one applies
- A public, verified Google Business Profile
In select categories, identity verification of owners or field workers can be added. According to Google, background checks only apply in the US and Canada.
Timeline: Google says screening takes 3-4 weeks on average after you submit your documents.
Step 3: Complete Business Profile
- Business name and address
- Service area (postcodes or radius)
- Opening hours and emergency hours
- Services offered (the more specific the better)
- High-quality photos
Step 4: Set Weekly Budget
How the budget is calculated:
- Google estimates for your industry/region: X leads per week possible
- At 8 leads × £12 per lead = £96/week budget
Recommendation: Start with Google's suggested budget and adjust after 4-6 weeks.
Lead Management in LSA
Invalid Leads and Credits
How Google handles poor leads depends on where you advertise. Per Google's help (as of September 2026):
- First assessment: Google assesses every lead at the initial contact. Leads judged invalid or low quality are not charged.
- Credits: Automatic credits for already charged leads are only available in the US and Canada. Lead credits are not available for advertisers in EMEA, which includes the UK.
- Feedback: You can fill in the feedback survey for any lead that wasn't a fit. Google uses it to send you more of the leads you want. Outside the US and Canada, don't count on getting money back this way.
So plan your budget with room for a share of poor-fit calls.
Reviews: The Most Important Factor in LSA
LSA ads prominently display reviews. The number and quality of reviews directly impacts:
- Where you appear in LSA results
- How many users click/call you
- Your cost-per-lead
Actively Building Reviews
Best strategy: After every successful job, ask the customer to leave a Google review.
Simple process:
- Copy review link from Google Business Profile
- Send as a short message after the job via SMS/WhatsApp/email: "Thank you for choosing us! If you were happy with our service, we'd love a quick review: [Link]"
Goal: Google doesn't name a minimum number of reviews. According to Google, though, star rating and number of reviews affect where you rank in LSA. In my experience it pays to collect a few genuine reviews before you launch.
LSA Costs: What Can a Lead Cost You?
Note: Lead prices vary a lot by industry, region and competition, so there are no universal benchmarks. During setup, Google estimates how many leads per week your budget can buy, which gives you a rough lead price.
More important than an industry average is your own ceiling:
Maximum affordable lead price = job value × margin × close rate
| Example (fictional values) | Job value | Margin | Close rate | Max. lead price |
|---|---|---|---|---|
| Electrician, repair | £250 | 40% | 50% | £50 |
| Removal company | £1,000 | 25% | 30% | £75 |
| Cleaning service, annual contract | £2,000 | 20% | 25% | £100 |
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If Google's estimate for your area sits below this ceiling, a test is worth it. If it sits above, LSA only pays off for that service if repeat jobs make up the difference.
ROI example (electrician, fictional numbers): £20 cost-per-lead × 10 leads/month = £200 budget → At 50% close rate and £250 job value = 5 × £250 = £1,250 revenue = 6.25x ROAS.
Common Mistakes with Local Service Ads
- Too large service area: only target areas you can profitably travel to
- Not responding quickly: LSA takes into account how quickly and reliably you respond to enquiries; missed calls and late callbacks cost you visibility, so answer leads as fast as you can
- Counting on credits for poor leads: outside the US and Canada, Google doesn't offer lead credits, so budget for poor-fit calls and use the feedback survey
- No reviews built up: with 2 reviews you'll barely get clicked
- Not tracking LSA leads in CRM: measure lifetime value to understand true ROI
LSA and Google Ads: Recommended Combination
| Channel | Strength |
|---|---|
| LSA | Trust, high click-through rate, pay-per-lead |
| Google Ads | Control, specific keywords, more reach |
Recommended strategy: LSA for standard services + Google Ads for specific premium services or when LSA budget is exhausted.
Checklist: Setting Up LSA
- Availability checked for industry/region
- All verification documents prepared
- Google Business Profile optimized (photos, hours, description)
- First genuine Google reviews collected
- Service area precisely defined (only profitable areas)
- Only relevant services activated
- Weekly budget calculated based on lead price and close rate
- Lead feedback survey understood
- Post-job review request process established
Conclusion
Local Service Ads can be a very profitable Google advertising format for local service businesses, when the prerequisites are met: passed screening for "Google Verified", sufficient reviews, precise service area.
The one-time effort of verification is well invested: the "Google Verified" badge and the separate ad unit in Search build trust and visibility. How many enquiries that turns into, and at what price, your lead dashboard shows you after the first few weeks.
Want to set up Local Service Ads for your business? I'll guide you step by step.
FAQ About Local Service Ads
Are Local Service Ads being replaced by Performance Max?
According to Google's help center, Google is gradually moving LSA into Performance Max campaigns with pay-per-lead goals: select US advertisers from August 2026, broader groups in late 2026 and accounts outside the US in 2027. You still only pay for valid leads, and verification and lead history carry over. After the switch, you can no longer set a maximum cost-per-lead yourself.
When will the switch to Performance Max happen in the UK?
Google only says 2027 for accounts outside the US, which includes the UK. There is no exact date yet. Until then, save your lead data regularly, as Google recommends before migrating, and track your leads in your own CRM so you can compare lead price and quality after the switch.
Are Local Service Ads available outside the US?
Yes. Google's help center has LSA country pages for the US, Canada and several European countries, including the UK, Ireland, Germany, Austria and Switzerland. Categories differ by country: in the UK and Germany they are mainly trade and home services. Poland, for example, is not on the list.
What does a lead cost with Local Service Ads?
It depends heavily on industry, region and competition, so there are no universal benchmarks. You only pay for valid leads such as calls or messages, not for clicks. Work out your maximum affordable lead price first: job value times margin times close rate. If Google's estimate for your area sits below it, a test is worth it.
Do I get money back for poor leads in the UK?
No. According to Google's help center, credits for already charged leads are only available in the US and Canada, not for advertisers in EMEA, which includes the UK. Leads that Google judges invalid at the initial contact are not charged, though, and the feedback survey helps Google send you better-fitting leads.
