- Local Services Ads charge for valid leads such as calls and messages, while Search ads with cost-per-click bidding charge for each click.
- Google now uses a single Google Verified badge and has discontinued the Money Back Guarantee that came with the Google Guarantee badge.
- Local Services Ads are moving into Google Ads as a pay-per-lead Performance Max campaign type, starting with select US advertisers in August 2026.
- After migration, manual bidding such as a maximum cost per lead is not supported, so plan to manage by budget and lead quality.
- Most eligible home-service businesses do best running both and comparing cost per booked job, not cost per lead or click.
Should a home-service business use Local Services Ads or Google Search ads?
Use Local Services Ads when your trade and area are eligible and you would rather pay per lead than per click. Use Search ads when you need control over keywords, ad copy and the landing page, or when your service is not eligible. Many plumbers, electricians, cleaners and similar businesses run both, because the two show in different places and are billed differently. Before you choose, know that Google is moving Local Services Ads into the main Google Ads platform during 2026 and 2027, which changes how you manage them.
Our Google Ads team sets up and manages both campaign types for service businesses. This guide covers the trade-offs we walk clients through.
How do Local Services Ads work and what do you pay for?
Local Services Ads appear in their own unit in Google Search results for the services you offer, showing your business name, star rating and badge. According to Google's help page on how leads work, you are charged for each valid lead, not for clicks. Valid leads include answered calls, calls you return, messages, voicemails and, in the US and Canada, booking requests.
A few billing rules from the same page matter in practice:
- A missed call during your business hours is charged if the caller stays on the line for more than 20 seconds, so answering the phone matters.
- Further contact from the same number or address within 15 days of a charged lead is not charged again.
- Google reassesses lead quality over 30 days and can credit low-quality or invalid leads automatically. You can also report a poor lead through its feedback survey, although lead credits are not available for health care, tax specialists or advertisers in EMEA.
- Your monthly maximum is your average weekly budget multiplied by the average number of weeks in a month. Once you reach it, the ad stops showing for the rest of the month.
Bidding is simpler than in Search campaigns. Google's bidding guide describes two modes: Maximize leads, where Google sets the bid, and Max per lead, where you set the most you would pay for a lead.
What does verification involve?
Local Services Ads are only available for certain service categories, so check eligibility on Google's getting started page first. Then comes screening. Google's screening and verification guide lists:
- background checks for select businesses in the US and Canada, covering owners and the service workers who serve customers directly;
- checks of the licences your trade needs, plus your confirmation that all your professionals are licensed;
- a certificate of insurance for certain categories;
- business registration, which in the US is done through a D-U-N-S number that can take up to 30 days to get.
Plan for this paperwork. Listings can show before every step is finished, but Google places them below providers who have completed onboarding.
What happened to the Google Guarantee badge?
Many older articles still talk about "Google Guaranteed" and "Google Screened" businesses. Google has since launched a single Google Verified badge for all advertisers and discontinued the Money Back Guarantee that came with the Google Guarantee badge. Existing advertisers who had completed verification received the new badge automatically. New advertisers get it after they pass screening and verification. If someone still sells you Local Services Ads on the strength of a money-back guarantee, their information is out of date.
How is Local Services Ads changing in 2026?
Google's help page on the transition to Performance Max says Local Services Ads is moving into the Google Ads platform. Select home and storefront service advertisers in the United States began migrating in August 2026, broader groups follow later in 2026, and non-US accounts and the remaining categories move in 2027.
After migration, your account runs as a specialised Performance Max campaign type built for pay-per-lead goals. You still pay only for valid leads, and your verified status and badge transfer automatically. The big change is bidding: manual bidding, such as setting a maximum cost per lead, is not supported in Google Ads. If you rely on a fixed lead price today, expect to manage by budget and lead quality instead. Our guide to Performance Max and Search campaigns explains how Performance Max differs from keyword campaigns.
When are Google Search ads the better choice?
With Search ads you choose the keywords, write the ads and send people to your own landing page. With cost-per-click bidding you pay for each click, whether or not that visitor gets in touch. That sounds riskier, but it gives you control that Local Services Ads do not:
- Service mix: you can push high-value jobs, such as full bathroom refits, and exclude low-value searches with negative keywords.
- Landing pages: you decide what people see, including offers, quote forms and photos of your work.
- Tracking: you can measure form fills, calls and booked jobs, and feed results back with enhanced conversions for leads.
- Eligibility: Search works when your category or country has no Local Services Ads.
The cost is management time. Search campaigns need keyword research, negative keyword lists, ad testing and a page that converts. Without them, clicks turn into expensive visits that never call.
How do the two compare side by side?
| Question | Local Services Ads | Search ads |
|---|---|---|
| What you pay for | Valid leads | Clicks |
| Who controls targeting | Google, from your job types and area | You, through keywords and locations |
| Where people land | Your Local Services profile | Your website |
| Trade screening | Required for the badge | Not part of the campaign |
| Best for | Calls and messages in eligible trades | Specific high-value services in any category |
Should you run both, and how do you start?
For most eligible home-service businesses, running both works well. Local Services Ads catch the people who want someone nearby now, and Search ads target the jobs you most want. Set a budget for each (our guide to a Google Ads budget for a service business helps), then compare cost per booked job, not cost per lead or per click.
Two habits help both channels:
- Answer calls quickly and reply to messages the same day, because missed calls still cost money on Local Services Ads and lose leads on Search.
- Keep your Google Business Profile and reviews healthy, since customers see your rating in both places. Our guide on getting more Google reviews shows how to ask within the rules.
If you want reporting that compares both channels fairly, from first call to booked job, our digital marketing team can set up the tracking.
Frequently asked questions
Can we choose which jobs Local Services Ads send us?
You choose the job types and the service area in your profile, and leads come from people looking for those services. You cannot pick individual search terms the way you can with keywords in Search ads, so switching off job types you do not want is the main way to avoid unwanted leads.
Do we need a website to run Local Services Ads?
No. People contact you through your Local Services profile on Google, so the ad does not send them to your website. A good website still helps, because many customers check it before they call, and you need one for Search ads.
How long does it take before the results are reliable?
Google's bidding guide for Local Services Ads says it takes about two weeks to see accurate results while the model adjusts and learns about your business. Avoid big budget or bidding changes in that period, then judge results on booked jobs.
Are Local Services Ads available outside the United States?
Yes, in a number of countries, but the categories differ by country. Check Google's getting started page for your country. Google's migration timeline says non-US accounts move into the Google Ads platform in 2027.
Can an agency manage Local Services Ads for us?
Yes. An agency can set up and manage the campaign, track leads and handle disputes. Your business should still own the account, and the verification, licences and insurance are always in your business name.
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