If you've ever searched "plumber near me" or "HVAC Saskatoon" and seen a little box of businesses with green checkmarks sitting above everything else on the page — above the map pack, above regular Google Ads — that's Local Services Ads (LSAs). And if you run a trade business and haven't looked into it yet, this is the one to actually read to the end.
How it actually works
Unlike regular Google Ads, which charge per click whether or not that click ever calls you, Local Services Ads charge per lead — a phone call or message from a real potential customer. You set an average weekly budget based on how many leads you want, and choose a bidding mode: Maximize Leads, Target Cost Per Lead, or Max Per Lead.
Leads get assessed the moment someone contacts you. If Google determines a lead was invalid or low-quality, you're not charged for it — and even charged leads can be re-assessed and credited later if they turn out to be junk. That's a meaningfully different risk profile than paying for clicks that never convert.
What it costs in 2026
The average cost per lead for home services LSAs sits around $53, based on $6.72M in observed ad spend across 888 contractors. It varies a fair bit by trade:
| Trade | Typical CPL | Notes |
|---|---|---|
| Electrical | ~$39 blended | $40–75 in metros; panel upgrades & EV chargers cost more |
| HVAC | ~$51 blended | $45–80 metros, $28–45 mid-size markets; emergency AC $100+ |
| Plumbing | ~$57 blended | $35–65; water heaters & drain cleaning cost more |
| Drain / sewer | ~$59 blended | — |
| Roofing | — | $55–90; storm-damage queries can spike past $150 |
The Google Guaranteed screening process
Here's the part that surprises people: you can't just turn LSAs on. To get the green "Google Guaranteed" badge, every business has to pass a screening and verification process that typically includes:
- Background checks — for the business, the owner, and every field worker who might show up at a customer's door, including identity and criminal history checks.
- License verification — Google validates applicable provincial/state and local licenses against government databases.
- Insurance verification — you submit a certificate showing general or professional liability coverage meeting the category minimum.
Budget a few weeks for this, not a day — the paperwork is the actual bottleneck for most trades getting started, not the ad setup itself.
Who should actually run this
LSAs work best for home service trades — HVAC, plumbing, electrical, roofing — where a customer is actively searching for someone right now to fix a real problem. It's not a replacement for local SEO or your Google Business Profile; it sits in a different slot on the page entirely and stacks on top of both. Most trades running LSAs well are also investing in standard Google Ads for the searches LSAs don't cover, and this is exactly the kind of multi-channel setup — budget strategy, ongoing lead-quality disputes, and the screening paperwork — that a hands-on Local Services Ads partner handles for you instead of you learning it live on a Tuesday.
Wondering if LSAs are even the right first move for your trade?
Frequently Asked Questions
Which businesses and countries can use Local Services Ads?
As of 2026, Google supports more than 70 business types across eight category groups — home services (HVAC, plumbing, electrical, roofing, locksmiths, movers), business services, health and wellness, education, pet care, and more. LSAs are live in the US, Canada, the UK, Australia, and a growing list of European markets including Germany, France, and Spain, though which specific categories are eligible still varies by country.
Can I run Local Services Ads and regular Google Ads at the same time?
Yes. LSAs occupy a separate placement above the standard Google Ads slots and the map pack, so the two don't compete with each other for the same spot on the results page. Most trades running LSAs well are also running standard Google Ads for searches LSAs don't cover.
What happens if I get a spam lead or a wrong number through LSAs?
You can dispute it. Google reviews flagged leads and credits your account if the lead is confirmed invalid — a wrong number, spam, or outside your service area. Even leads you were already charged for can be re-assessed and credited later if they turn out to be junk.
How quickly can I start getting leads after getting Google Guaranteed?
Once your badge is live, your listing goes straight into the top placement on relevant searches, so leads can start arriving the same day. The real bottleneck is almost always the weeks-long background check, license, and insurance verification before that badge goes live — not the ad itself.
Sources
- Google — How Leads Work (Local Services Help)
- Google — Screening and Verification Process (Local Services Help)
- Searchlight Digital — Google Local Service Ads Cost Per Lead by Trade (2026)
- Google Ads — Local Services Ads Overview
- PrimeLSA — Google Local Services Ads Eligible Categories (2026)
Keep reading
- What Is an AI Receptionist, Really? — the tool that answers the leads LSAs send you, even after hours.
- The C × AOV × F Formula — how a cheaper, higher-intent lead source moves your Traffic and Conversion levers together.
- Marketing Is the Most Important Department in Your Business — why the Google Guaranteed badge is a perception play as much as a lead-gen one.