Google Local Services Ads

How you pay

Local Services Ads charge for leads, not clicks. Google says you're charged for each valid lead you receive through the ad, and that lead prices can vary with your location, the job type, the type of lead and your bidding mode ¹. A lead is a person reaching out, not a booked job, so the number that matters is what you pay per job you actually win.

Google assesses leads when the customer first makes contact and doesn't charge for ones it judges invalid or low quality. Charged leads can be reassessed later and credited automatically, and you can flag a poor lead through that lead's feedback survey. Google says credits usually reach your account balance within 30 days, while the original charge still shows on the invoice ².

Example: In one month a plumber pays for 25 leads and books 10 jobs. If the month's lead charges were $1,000, that's $100 per booked job. Seven were small repairs and three were water heater replacements, so whether the month paid off depends on the gross profit from those jobs, not on the lead count. The numbers are made up for illustration.

Screening and the badge

To run the ads your business has to pass screening, which varies by category and location and can include background, business registration, insurance and license checks. Background checks apply to owners and to every employee or contractor who performs the core service. Google verifies state-level licenses where it can, and you must confirm any county or city licenses yourself ^{3 4}.

Since October 20, 2025, Google has shown one Google Verified badge in place of the older Google Guaranteed, Google Screened and License Verified labels ⁵, and the money-back guarantee tied to the old Google Guarantee badge has been discontinued ⁶.

Common mistakes

• Still advertising "Google Guaranteed." Update the truck wrap, website and estimate template, and don't tell customers Google will refund them.
• Sending an unscreened worker. Background checks cover every worker who performs the core service, so get a new hire through screening before you send them to an ad lead.
• Judging by cost per lead. Track cost per booked job, by job type. A cheap lead for a job you rarely win costs more than it looks.
• Slow callbacks. A lead that waits an hour has often called someone else.
• Following old tutorials. Google describes a move of Local Services Ads to Performance Max campaigns with pay-per-lead goals ⁷, so setup screens may differ from older guides.

How it connects

Your unpaid listing is the Google Business Profile; Local Services Ads are a paid placement on top of it. Compare them with other sources using customer acquisition cost and close rate, and follow up on every quote the ads produce (how to follow up on quotes).