Google Local Service Ads for Contractors: A Complete Guide

Google Local Service Ads sit above everything else in search results, including regular Google Ads. For contractors, they are one of the highest-intent lead sources available. Here is how to make them work.

What Are Local Service Ads?

Local Service Ads are a pay-per-lead advertising product from Google. Unlike traditional Google Ads where you pay per click, with LSAs you only pay when a potential customer contacts you directly through the ad by calling or messaging. Your ad shows your business name, star rating, years in business, and a Google Guaranteed badge.

What Is Google Guaranteed?

The Google Guaranteed badge means Google has screened your business: background checks on owners and workers, license verification, insurance verification, and review checks. If a customer is unsatisfied with a job booked through an LSA, Google will refund up to $2,000. The badge significantly increases trust and click-through rates.

How Much Do LSA Leads Cost?

Lead costs vary by trade and market. General ranges for 2025:

• HVAC: $25-80 per lead
• Plumbing: $20-75 per lead
• Electrical: $20-65 per lead
• Roofing: $40-120 per lead
• Pest control: $15-50 per lead

You set a weekly budget and Google distributes leads until it is spent.

How to Get Approved

1. Go to the Google Local Services Ads site and create an account
2. Select your business type and service area
3. Submit proof of license and insurance
4. Pass background checks for owners and technicians
5. Connect your Google Business Profile

Approval typically takes 1-3 weeks.

Maximizing Your LSA Performance

LSA rankings are based on Google review count, responsiveness, and proximity to the searcher. To improve your rank:

• Answer every LSA call immediately, missed calls hurt your ranking score
• Respond to message leads within minutes
• Dispute leads that are clearly irrelevant
• Continuously grow your Google review count
• Keep your profile complete with updated hours and photos

LSAs vs Google Ads

For most contractors, run both. LSAs show above regular Google Ads and generate calls from highly qualified buyers. Regular Google Ads let you control messaging, target specific services, and capture searches that do not trigger LSAs. Together they dominate the top of search results pages.