The Insider’s Guide to Google’s Local Service Ads
Ishant Sharma
March 29, 2025 at 3:42 pm
Ishant Sharma
He is the founder & CEO of Hustle Marketers, an E-commerce PPC expert, and a digital marketing specialist. As a Google Partner, his agency has managed over $90 million in ad spend, generating over $720 million in revenue for clients. With a track record of success, he and his team are committed to helping businesses achieve their digital marketing goals and drive revenue growth. Do not hesitate to reach out to Ishant at info@hustlemarketers.com and let them handle the hustle for you.
Today, when people need a service—whether it’s plumbing, electrical work, or house cleaning—they usually turn to Google. For local businesses offering these services, it’s crucial to show up on Google when customers are searching for help. That’s where Google Local Service Ads (LSAs) come in.
If you’re a local service provider, LSAs may help you reach more people, generate more leads, and establish trust with future clients. In this article, I’ll go over what LSAs are, how they function, the advantages of utilizing them, and how to get started.
Google Local Service Ads: An Overview
When customers look for certain services in their region, Google Local Service Ads (LSAs) assist local companies to appear at the top of Google search results. When someone in your city searches for a “plumber near me,” for instance, they will see your advertisement at the top of the page, directly above organic search results and conventional Google advertisements.
LSAs are intended for service-oriented enterprises such as plumbers, electricians, and cleaners. LSAs vary from ordinary advertising in that they highlight Google-verified companies.
If your company passes a background check and satisfies Google’s criteria, you will receive a Google Guaranteed badge. This emblem demonstrates that your company is trustworthy and dependable, which is a significant selling advantage for clients.
Why Should You Use Google Local Service Ads?
There are several reasons why LSAs can be a valuable tool for your local business. Here are some of the key benefits:
- Top-of-the-Page Visibility
LSAs appear at the top of Google search results, preceding conventional search results and other advertisements. This implies your company is one of the first things consumers see when searching for the services you provide.
- Build Trust with the Google Guaranteed Badge
If your business is verified, you’ll get a Google Guaranteed badge, which shows that Google has checked your business for quality and trustworthiness. This badge helps potential customers feel more confident in choosing your services.
- Cost-Effective Advertising
With LSAs, you only pay for leads. That means you’re not paying for clicks from people who aren’t interested in your services. You only pay when a customer contacts you directly, so your advertising budget is used more efficiently.
- Local Targeting
LSAs focus on showing your business to people who are located in your service area. This is especially helpful if you’re running a local business and want to attract customers in your specific region.
- Higher Conversion Rates
Since LSAs display key information like your business name, hours of operation, ratings, and reviews, potential customers can quickly get all the information they need to decide to contact you. This makes it easier for them to trust you and take action.
Read More: What is PPC in Digital Marketing, And How to Use it
How Do Google Local Service Ads Work?
The process of using LSAs is straightforward. Here’s how it works for both you (the business owner) and your customers:
- Customer Search: A potential customer searches for a service on Google (e.g., “electrician near me”).
- Ad Display: Your Local Service Ad appears at the top of the search results. Your business name, contact information, and Google reviews are displayed, along with the Google Guaranteed badge (if you are verified).
- Customer Interaction: If a customer is interested in your service, they can contact you directly through the ad by clicking on your phone number, sending a message, or booking an appointment.
- Pay for Leads: You only pay when a customer contacts you through your LSA, whether by calling, messaging, or booking a service. You do not pay for people who just click on the ad without contacting you.
Setting Up Your Google Local Service Ads
Getting started with Google Local Service Ads is relatively easy. Here’s a step-by-step guide to help you set up your LSAs:
1. Check Eligibility
Not all businesses are eligible for LSAs. Google offers LSAs for specific types of services and locations. You can check whether your business qualifies by visiting the Google Local Services website. Common industries eligible for LSAs include plumbing, electrical work, cleaning, HVAC, landscaping, and more.
2. Create a Google Business Profile
Once you’ve confirmed that you’re eligible, you’ll need to create a profile for your business on the Google Local Services platform. During this process, you’ll provide basic information such as:
- Your business name
- The services you offer
- The areas you serve
This profile is important because it helps Google understand your business and ensures your ad is displayed to the right customers in your area.
3. Complete Google’s Verification Process
To receive the Google Guaranteed badge, your business must go through Google’s verification process. This involves submitting documents that prove your business is legitimate, such as:
- Proof of business registration
- Any required licenses or certifications for your industry
- Insurance documents (if required)
Google will also perform background checks on your business and employees to ensure you meet their standards. Once you pass, you’ll be eligible for the Google Guaranteed badge.
4. Set Your Budget
LSAs use a pay-per-lead model, meaning you only pay for the leads you receive. Google will ask you to set a weekly budget for your ads, and you’ll be charged based on the number of leads you get. Google provides an estimate of how much you might pay per lead based on your industry and location.
5. Optimize Your Profile
To make your ad as effective as possible, make sure your business profile is complete and appealing. Here are some tips for optimizing your profile:
- Add high-quality photos
- Collect reviews
- Provide a clear description of your services
6. Launch Your Ad
Once your profile is set up and optimized, your ad will go live. Your business will start appearing at the top of Google search results for relevant searches in your service area.
Hiring a reputed digital marketing agency to set up and run local service ads for you can help take the burden off your shoulders. This also ensures that experts handle your ads while you focus on your core business. Now that’s a win-win, isn’t it?!
But What About The Credibility of Local Businesses?
Well, that is exactly where Google Screened comes into the picture!
Google Screened is a program that verifies the credibility of local businesses advertising through Google Local Service Ads (LSAs). Businesses that complete the screening process receive the Google Screened badge, helping them stand out from competitors.
To qualify for LSAs, businesses must meet specific criteria, including passing background checks, verifying licenses and insurance, and maintaining a minimum Google rating.
Screening requirements vary by category and location, and some businesses may need to conduct employee background checks. Providing accurate, honest, and up-to-date information during verification is crucial for eligibility and building customer trust.
Benefits of Google Screened
- The Google Screened badge enhances a business’s online reputation by building trust.
- It provides potential clients with added confidence in the business’s reliability.
- Local businesses gain a competitive edge with the Google Screened badge.
Local Service Ads (LSA) vs. Traditional Google Ads
While both LSAs and traditional Google Ads (pay-per-click ads) appear on Google search results, there are some important differences between the two:
Feature | Google Local Service Ads | Google Ads |
Target Audience | Local customers searching for specific services | Broad audience, based on keywords and targeting |
Ad Placement | Top of the search results, above organic listings | Various positions on the search page and other Google networks |
Bidding System | Pay-per-lead (you only pay when a customer contacts you) | Pay-per-click (you pay for each click on your ad) |
Ad Format | Simple, with business details, reviews, and contact info | Customizable ads with text, images, or videos |
Management | Simple and straightforward | Requires keyword research, writing ads, and bid management |
Best For | Local service businesses with defined service areas | Businesses of all types and sizes |
Conclusion About Local Service Ads (LSAs)
Google Local Service Ads (LSAs) are a great tool for local businesses. They help you get more visibility online, show you have a trusted Google Guaranteed badge, and provide a cost-effective way to reach customers near you.
Since LSAs use a pay-per-lead model, you only pay when a customer contacts you, making it an efficient way to use your marketing budget.
If your business offers services, LSAs can really help. They help you stand out in local searches, build trust with customers, and grow your business. By setting up and optimizing your profile, you’ll be able to get more leads and see better results. Our dedicated team at Hustle Marketers are here to help you leverage LSAs in the best way possible. Reach out to connect with us today and get started
Frequently Asked Questions
What are Local Service Ads (LSAs)?
How do Local Service Ads function?
Who is eligible for Local Service Ads?
What determines rankings in Local Service Ads?
What does the Google Guarantee badge mean?