Getting new leads from Google is more competitive than ever. Between shrinking organic reach and higher cost-per-clicks, service businesses need smarter, more efficient ways to connect with customers. That’s where Local Services Ads (LSAs) come in. Unlike Google Search ads, they operate on a pay-per-lead model. You pay only for messages or phone calls, not clicks. Your business must be an eligible industry. Some eligible industries include: home services, professional services, health & wellness, automotive services, and childcare services.
Choose What Services You Want to Appear For
Once your account is verified and active, you can customize exactly which services you want your ads to appear for. Take, for example, a moving company. You may turn on local moves, in-state moves, out-of-state moves, packing/unpacking, but turn off junk removal, oversized item move, and vehicle transport.
Each lead that comes in will have a status showing whether you were charged — and why. Understanding these helps you manage your ad spend efficiently. There are four different statuses: In review, charged, not charged, and credited.
- In review: If the lead isn’t a good match, you will receive a credit.
- Charged: Charged for the lead. This was a good match for your business.
- Not charged: Lead was not a good match, such as a missed call, repeat, or current customer.
- Credited: You were initially charged, but Google later credited it back after review.
Regularly reviewing these statuses and rating your leads helps train Google’s algorithm to deliver higher-quality leads over time.
Why Local Services Ads and Why Now?
Google search is changing yet again. Users now have the ability to hide sponsored results when searching on Google, yet it does not allow them to hide sponsored local service ads. They also receive prominent placements at the very top of search results.
LSAs builds trust and credibility because you must pass Google’s screening and verification process. This includes background checks and license confirmations
What Factors Influence the Rank of LSAs?
Like most things on Google, visibility matters. Your ranking in LSAs determines how often your ad shows up — and at what position. The algorithm looks at both your bid per lead and the quality of your Google Business Profile.
Factors include:
- High star ratings
- Number of recent and positive reviews
- Completed profile
- Service areas
- Photos
- Response time to leads
- Competition
- Proximity to searchers
- Proven track record of successfully completing jobs through LSAs
Keeping your Google Business Profile active and engaging — with fresh reviews and prompt responses — is one of the best ways to boost performance over time.
Local Services Ads are one of the most effective ways for local businesses to connect directly with ready-to-book customers. Whether you need help setting up your LSA account, managing your budget, or optimizing for higher-quality leads, the team at Holland Adhaus can help you make the most of every opportunity.
Melissa Morrison
Digital Marketing Manager, Holland Adhaus
Melissa consistently brings a unique blend of professionalism and joy to every project she does.
