# Google Local Services Ads for Local Businesses > How Google Local Services Ads work: the Google Verified badge, pay-per-lead pricing, screening and licensing checks, lead credits, where they appear, and how they differ from Search campaigns. Canonical: https://vassalmarketing.com/information/paid-search/local-services-ads/ **Maintained by Vassal Marketing** · Last updated on September 26, 2026 Reviewed at least quarterly and whenever a platform or rule it cites changes. General information, not legal or professional advice. Check rules that affect your business with a qualified professional. Local Services Ads (LSA) charge per lead instead of per click and appear at the top of Google Search for eligible service categories. To run them, your business must pass Google's screening, which can include license, insurance, and background checks. Google is now moving LSA into Google Ads as Performance Max campaigns with pay-per-lead goals. Keep job types and areas accurate, answer every lead, and flag bad ones. ## Why this matters Local Services Ads are a Google ad product for service businesses such as plumbers, electricians, HVAC companies, and locksmiths. Google says the Local Services unit appears prominently—at the top of the page—when people search for services you offer in areas you've chosen. You pay for leads (calls, messages, and booking requests) rather than clicks. Starting in August 2026 in the US, Google began moving LSA into Google Ads as Performance Max campaigns with pay-per-lead goals, beginning with categories such as plumbing, HVAC, electrical, and roofing. Service-area businesses follow later in 2026, and non-US accounts in 2027. Every advertiser must pass Google's screening and verification. Depending on category and region, that can include business registration, license and insurance checks, and background checks for owners and field workers in the US and Canada. In October 2025, Google replaced the ‘Google Guaranteed’ and ‘Google Screened’ badges with a single ‘Google Verified’ badge and ended the money-back guarantee for services booked after December 7, 2025. ## Responsible practices ### Prepare for the move into Google Ads When your account moves, you manage LSA inside Google Ads. Google says pay-per-lead, placements on Search and Maps, and your Google Verified badge carry over. Weekly budgets become an average daily budget (weekly ÷ 7), and manual bidding is being retired. Download your past LSA performance reports first, because old metrics don't transfer. ### Prepare for screening Gather your business registration, licenses, and insurance certificates. Insurance documents must be valid for at least 14 days after you submit them. In some categories, owners and workers who go into customers' homes need background checks through Google's partners. ### List only the jobs and areas you want Choose job types and service areas carefully. Google may not credit a lead if you listed a general service type but don't do the specific job the customer asked about. Accurate settings reduce leads you'll pay for and can't use. ### Set a budget and watch lead prices LSA is available only for certain categories and countries, so confirm yours first. You set a budget, and each charged lead counts toward it. Lead prices vary by location, job type, lead type, and bidding mode. Check the dashboard weekly while you learn what a lead costs in your area. ### Answer every lead quickly Answered calls with a real conversation, messages, and booking requests can all count as charged leads. Returning a missed call also counts. Use the same follow-up owner and log as your other leads so nothing slips. ### Use lead feedback and credits Google assesses leads and may not charge for invalid ones. It can issue automatic credits for low-quality leads in the US and Canada, and you can rate each lead and report poor ones in its feedback survey. Some leads—such as price-shoppers or no-shows—may not be credited. ## Local Services Ads setup checklist 1. Download past LSA performance reports before your account moves into Google Ads. 2. Gather licenses, insurance certificates, and business registration documents. 3. Complete Google's screening, including background checks where required. 4. Select only the job types and service areas you actually want. 5. Check the converted daily budget and bidding settings after the move. 6. Assign an owner to answer LSA leads and log each one. 7. Rate every lead and report poor-quality ones through the feedback survey. ## Avoid these failures - Listing broad job types you don't really do, then paying for leads you can't serve - Letting insurance or licenses lapse, which can pause ads or remove the badge - Leaving LSA leads in a separate app nobody checks - Advertising ‘Google Guaranteed’ or the old money-back promise after Google retired it - Assuming pay-per-lead means every charged lead will be a customer ## Questions business owners ask ### How are Local Services Ads different from Google Search ads? LSA charges per lead, shows at the top of results for eligible categories, and requires screening. You don't write ads or choose keywords; Google uses your profile, job types, and service areas. Search campaigns charge per click, work for almost any business, and give more control over keywords, ads, and landing pages. ### What does the Google Verified badge mean? It shows your business passed Google's screening for its category and area. It replaced the Google Guaranteed and Google Screened badges in October 2025. The old money-back guarantee has ended, so don't mention it in your marketing. ### Can we get credit for bad leads? Sometimes. Google may not charge invalid leads, can credit low-quality leads automatically in the US and Canada, and lets you report poor leads through the feedback survey. Leads for jobs you listed but don't do, price-only calls, and customers who don't respond may not qualify. ### What changes when LSA moves into Performance Max? You manage it in Google Ads instead of the separate LSA dashboard. Google says you still pay only for valid leads, ads stay on Search and Maps in the same positions, and your badge and lead history transfer. Weekly budgets convert to an average daily budget, and past performance metrics don't transfer—download them first. ## Primary guidance - [Google Ads: Local Services Ads moving to Performance Max](https://support.google.com/google-ads/answer/17213585?hl=en) - [Local Services Ads: How leads work](https://support.google.com/localservices/answer/7195435?hl=en) - [Local Services Ads: Understand the screening and verification process](https://support.google.com/localservices/answer/6226575?hl=en) - [Local Services Ads: About the Google Verified badge](https://support.google.com/localservices/answer/7549288?hl=en) ## Connected guidance - [Paid search lead follow-up](https://vassalmarketing.com/information/paid-search/paid-search-lead-follow-up.md): Give LSA leads the same owner, backup, and attempt log as every other lead. - [Paid search acquisition economics](https://vassalmarketing.com/information/paid-search/paid-search-acquisition-economics.md): Compare cost per booked job from LSA and Search campaigns on the same basis. - [Google Ads readiness](https://vassalmarketing.com/information/paid-search/google-ads-readiness.md): Check economics, capacity, and follow-up before adding any paid channel. Auctions, traffic, conversions, lead quality, acquisition cost, booked work, margin, and revenue are not guaranteed.