Beginner's Guide to Local Services Ads

When you run a home services company, a law firm, or any local business, you aren’t focused on reaching customers halfway across the globe. You want to connect with local people who need your services now. That’s exactly what Google Local Services Ads (LSAs) can help you do.

In this guide to Local Services Ads, we’ll show you what LSAs are, how they benefit your local business, and the steps to set them up. Let’s dive in.

What Are Local Services Ads?

Local Services Ads are paid ads that appear at the top of Google’s local search results. Unlike traditional ads, LSAs operate on a pay-per-lead model rather than pay-per-click.

You only pay when a potential customer contacts you—not for random clicks that may never convert.

Depending on your industry, you’ll either see the Google Guaranteed (common for home services) or Google Screened badge (often for professional services like law or real estate). These badges indicate Google has verified key details about your business, which can improve trust among potential customers.

Why Local Services Ads Matter

It doesn't matter if you're a plumber, dentist, law firm, HVAC tech, or roofer. Local Services Ads have the potential to supercharge your business.

Pay Only for Genuine Leads

With LSAs, Google charges you when you receive actual lead inquiries, such as phone calls or messages through your ad. You don’t waste your budget on accidental clicks or uninterested browsers.

Build Confidence & Visibility

LSAs show up at the very top of search results, along with “Google Guaranteed” or “Google Screened” badges. That kind of prime real estate and built-in trust factor can lead to more calls and bookings.

Simple Setup & Management

Google allows you to define your service area, business hours, and the exact services you provide. This ensures you only receive leads aligned with what you do and where you operate.

Improve Your Reviews & Rankings

Google factors in review quality and quantity when ranking LSAs. By encouraging happy customers to leave feedback, you can secure top spots—attracting even more leads without extra hassle.

Google only displays three LSAs in its search results. To see the others, you'll need to click the blue link that says "More HVAC pros in Sacramento".

To get the best results with Google Local Search Ads, your business needs to appear in the top three results as often as possible. That way potential customers don't have to click the "more" button to find your contact details. (Because many of them won't.)

Google ranks LSAs based on proximity to the searcher and the number of positive reviews the advertising business has. You can't do anything about where a searcher lives. But you can do a lot to generate positive reviews for your business, which will improve your LSA ranking.

Steps to Create Your Local Services Ads

1. Check Your Eligibility

Not all business types can use LSAs—so verify you’re in an approved industry and geographic area. Google frequently updates its coverage, so it pays to double-check here or in your Google Ads account.

2. Create Your LSA Profile

Once you confirm eligibility, head to the Local Services Ads portal. Provide details like:

• Business name (identical to your Google Business Profile)
• Address & service area
• Contact info & website
• Hours of operation
• Services offered and pricing (if applicable)

Note: Even if you have a Google Business Profile, you’ll still need to create a separate LSA profile.

3. Verify Licenses & Insurance

Google requires documentation to ensure you’re properly licensed and insured. You might also undergo background checks (often conducted by Pinkerton or a similar provider) for yourself and your field staff.

4. Polish Your Ads

Your ads should highlight why customers should choose you. Keep them concise but clear. List the areas you serve, your pricing (if relevant), and unique perks like 24/7 emergency service or special deals.

• Focus on Benefits: Why do you stand out?
• Use Short, Direct Sentences: Clarity is king.
• Stay Accurate: Update details promptly if you change phone numbers, hours, or services.

5. Set a Monthly Budget

LSAs run on pay-per-lead, so your budget is tied to how many leads you want per month. If you’re aiming for 20 leads, Google will estimate a monthly cost based on typical lead prices in your area. You can adjust anytime—bump it up when you’re ready for more leads, or scale back if you’re fully booked.

6. Handle New Leads Quickly

When a lead arrives, you’ll be notified via email, text, or the LSA dashboard. Try to respond as soon as possible—call them back, text them, or email them if they provided that info. Quick responses not only help convert leads into paying customers but also can influence your ad ranking.

7. Generate & Manage Reviews

Google prioritizes businesses with plentiful, positive reviews. Encourage satisfied clients to rate you on Google. If you provide great service, many will be happy to leave feedback—further improving your local ranking.

Tips for Maximizing LSA Success

Keep your info consistent. Ensure your business name, address, and phone number match everywhere (LSAs, website, Google Business Profile).

Monitor your dashboard. Watch for new leads and handle them fast. Don’t let potential business slip through the cracks.

Tweak your budget and services. If you find certain services aren’t as profitable, refine your profile so you attract higher-value leads.

Utilize reviews. The more high-quality reviews you collect, the stronger your LSA performance can become.

Pre-Badge LSA Options

Don’t have your Google Guaranteed or Google Screened badge yet?

Google may allow you to run Pre-Badge Ads if:

• You confirm you hold valid licenses for your services.
• You’re undergoing the required background checks.
• You have at least one review.
• You’ve added billing details and set a budget.

Pre-Badge Ads appear below businesses that already hold a badge, so it’s best to complete all onboarding steps to secure a higher position as soon as possible.

Ready to Get Started with LSAs?

Local Services Ads can connect you to people in your area who actually need your help—without paying for wasted clicks. If you’re looking for a straightforward way to grow your customer base and increase revenue, LSAs might be the perfect solution.

If you want expert guidance to set up and manage Local Services Ads or simply need help optimizing your digital marketing, Scorpion is here to help. With over two decades of experience helping local businesses succeed, we know what it takes to stand out—and get chosen.

Let's talk about LSAs. Reach out today!