Google is folding Local Services Ads into the main Google Ads platform, which means the pay-per-lead adverts that sit right at the top of local searches will now be managed alongside your other campaigns instead of in a separate tool. If you run a local trade or service business, this is worth a look, because local services ads in Google Ads can put you above the regular ads and the map results, and you only pay when someone actually contacts you.
For years Local Services Ads lived in their own corner. Separate login, separate dashboard, separate rules. Plenty of business owners never even knew they existed. Bringing them into Google Ads makes them easier to find and easier to run next to your search and display campaigns. But easier to run does not mean right for everyone.
What Local Services Ads actually are
They are the adverts at the very top of the results with the Google Guaranteed or Google Screened badge, a star rating and a phone button. Think plumbers, electricians, cleaners, locksmiths, solicitors, accountants. Someone searches, sees a handful of local providers, taps one and either calls or messages.
The big difference from normal ads is the billing. Standard Google Ads charge you per click. Local Services Ads charge you per lead, so you pay when a real person gets in touch, not when someone idly clicks and bounces. To appear at all you have to pass Google's checks, which usually means verifying your business, licences and insurance and sometimes a background check. That badge is the reason the ads convert well. It tells a nervous customer you have been vetted.
What the move into Google Ads changes
The plumbing under the bonnet stays largely the same. You still get verified, you still pay per lead, the badge still shows. What changes is where you manage it and what sits next to it.
- One place to look. Your Local Services Ads, search ads and everything else live under one login, so you see spend and results together.
- Easier to spot. More owners will stumble across the option, which also means more competition for the same slots.
- Better reporting alongside your other ads. You can compare cost per lead from Local Services Ads against cost per lead from a normal search campaign and decide where your money works hardest.
It does not suddenly make the ads suitable for a business that sells nationwide or online only. Local Services Ads are built for local, physical, service-based work. That has not moved.
The cost of ignoring it, or getting it wrong
If you are a local service business and you are not in that top block, a competitor with the badge is catching the customer before they ever scroll to you. That is lost work every single day. On the other side, treating Local Services Ads as set and forget wastes money. You can get charged for leads that are not a fit, and if you do not dispute the poor ones or keep your response times sharp, your cost per job creeps up and your ranking slips.
Running ads well is a job in itself. In 19 years of running businesses, Luke Stillwell has seen plenty of owners pour money into ads with no one watching the numbers. The platform will happily take your budget. Getting a return takes attention.
"They helped us with our website, SEO and advertising and made everything far more professional. It has led directly to us attracting more clients." Kay Zucker, DPL Landscapes.
How to decide if Local Services Ads suit you
Work through these before you spend a penny.
- Are you local and service-based? If customers search for your trade plus a town name, you are in the right territory.
- Can you pass verification? You will need the right licences and insurance ready to upload. No badge, no ad.
- Can you answer fast? These ads send calls and messages. Miss them and you have paid for nothing. If your phone goes unanswered at midday, sort that first.
- Do the numbers work? Look at what a job is worth to you against the likely cost per lead. If one won job pays for many leads, it stacks up.
- Are your reviews in decent shape? The star rating shows in the ad. Thin or poor reviews will cost you clicks no matter how high you rank.
If you tick those boxes, Local Services Ads deserve a spot in your plan. If you do not, standard search campaigns through our Google Ads management may fit you better, and it is worth strengthening the foundations underneath with local SEO so you show up in the map results without paying per lead. The two work well together. Send the traffic somewhere that converts too, because even the best ad fails if it lands on a weak page, which is where a website built to turn visitors into enquiries earns its keep.
07 Heaven Marketing helps local businesses decide where their ad budget actually pays back, then runs it properly rather than leaving it to drift.
Common questions
How much do Local Services Ads cost
You pay per lead rather than per click, and the price of a lead varies by trade and area because it is set by demand and competition. You set a weekly budget and Google works within it. Compare the cost of a lead against what a won job is worth to you before committing.
What is the difference between Local Services Ads and normal Google Ads
Local Services Ads sit above standard ads, carry a Google verification badge and charge per lead. Standard Google Ads charge per click and give you more control over keywords, landing pages and messaging. Many local businesses run both and compare the cost per enquiry from each.
Do I need the Google Guaranteed badge to run Local Services Ads
Yes. To appear you must pass Google's verification, which usually covers your business details, licences and insurance, and sometimes background checks. The badge is a big reason these ads convert, so it is worth the effort.
Book a free discovery call and we will look at whether Local Services Ads are right for your business and where your ad budget will work hardest.