Ray, Motion MKTG
If you're a contractor or trades professional and you're not using Google Local Service Ads, you're giving leads away to competitors who are. LSAs are one of the most powerful — and still underutilized — advertising tools available to service businesses. This guide covers everything you need to know: what they are, how they differ from regular ads, how to get verified, and how to get the most out of your profile once you're live.
What Are Google Local Service Ads?
Google Local Service Ads (LSAs) appear at the very top of Google search results — above regular Google Ads and above all organic results. When someone searches for "electrician near me" or "plumber in Toronto," LSAs are the first thing they see.
Unlike a standard ad, an LSA shows your business name, star rating, number of reviews, phone number, and hours — right there in the search results. More importantly, it displays either the Google Guarantee or Google Screened badge, depending on your trade. These badges signal to potential customers that Google has verified your business.
The most significant difference from any other ad format: you only pay when someone calls or messages you directly through the ad. You are not paying for clicks to a website. You are paying for actual leads — people who picked up the phone or sent a message specifically to reach your business.
LSAs vs. Regular Google Ads: What's the Difference?
This is the most important distinction to understand before you decide where to put your ad budget. Regular Google Ads — also called Google Search Ads or pay-per-click ads — charge you every time someone clicks your link, whether or not they ever call you, whether or not they're even a serious prospect. A competitor clicking your ad, a person who clicks and immediately bounces, a user who visits your site but contacts no one — all of those clicks cost you money.
LSAs operate on a completely different model. You pay per lead, not per click. A lead in LSA terms means an actual call or message from a real person trying to hire you. If nobody contacts you, you pay nothing. If someone calls by mistake or is clearly not a fit, Google allows you to dispute that lead and potentially receive a credit.
There is also a trust dimension that regular Google Ads cannot replicate. To run LSAs, Google requires you to pass background checks for business owners and employees, verify your professional license, and provide proof of insurance. That process is what earns you the Google Guarantee or Google Screened badge — and it's why customers take those badges seriously. Any business can pay to run a regular Google Ad. Not every business can qualify for an LSA badge.
The Google Guarantee badge tells potential customers that if they're not satisfied, Google will refund the cost of the job up to $2,000. That level of trust is extremely difficult to replicate with any other ad format.
Getting Verified: What You'll Need
The verification process is what separates LSAs from every other advertising option — and it's also what makes the leads you get through LSAs more valuable. Because your competitors have to clear the same bar, being verified signals real credibility.
Here is what you'll need to complete verification:
- Background check for business owners and employees — Google uses a third-party provider to run background checks. All individuals who enter customer homes must be included.
- Proof of license — requirements vary by trade and by region. An electrician in Ontario will have different requirements than a landscaper in Texas. Google will specify exactly what's needed for your category and location.
- Proof of insurance — general liability insurance is required at minimum. Some trades require additional coverage.
The full verification process typically takes one to three weeks from the time you submit your documentation. It is worth every minute. Once you're verified and live, the badge works for you around the clock without any additional effort on your part. If you want to learn more about running effective lead generation campaigns alongside LSAs, see our lead generation services page.
How Bidding Works and How to Win More Leads
LSAs do not operate on a simple auction the way regular Google Ads do. Your position in LSA results is determined by a combination of factors: your bid, your review count, your average star rating, your responsiveness to leads, and your proximity to the searcher.
Higher bids combined with more positive reviews generally produce more prominent placement. A business with 120 reviews at 4.9 stars and a competitive bid will consistently appear above a business with 15 reviews at 4.3 stars, even if the latter is bidding slightly higher. This means that investing in reviews is not just good for reputation — it directly improves your LSA ad position and reduces your effective cost per lead over time.
When setting your budget, think in terms of how many leads you can realistically handle per week. LSAs allow you to set a weekly budget rather than a daily one, which gives you more flexibility. If you get fully booked mid-week, you can pause your ads immediately. If you have open capacity, you can increase your budget to fill the schedule. This level of control is one of the key practical advantages LSAs have over other ad types.
Businesses that respond to LSA leads within 5 minutes have a significantly higher chance of booking the job. Speed of response is as important as your ad position.
Getting the Most Out of Your LSA Profile
Being verified and live is the starting line, not the finish line. The businesses that consistently win the most leads through LSAs treat their profile as an active asset, not a set-it-and-forget-it listing.
Here is what the top-performing LSA profiles do consistently:
- Complete every field — your business description, services offered, service areas, and business hours should all be fully filled in. Incomplete profiles rank lower.
- Add photos of your team and work — real photos of your crew on the job, completed projects, and your vehicles build trust and make your profile stand out from text-only listings.
- Actively request reviews from LSA customers specifically — Google weighs LSA-sourced reviews more heavily in your LSA ranking than reviews gathered through other channels. After every job booked through an LSA lead, ask that customer to leave a review through the LSA platform.
- Set your availability accurately — if your profile says you're available 24/7 but you never answer calls after 6pm, Google's system will begin to penalize your responsiveness score. Be honest about your hours.
- Dispute fake or invalid leads promptly — if you receive a call that was clearly a wrong number, a spam call, or a service outside your listed area, dispute it in your LSA dashboard within 30 days. Google reviews these disputes and credits valid ones back to your account.
Managing LSAs effectively takes time and attention to detail. If you'd rather have someone handle it for you, reach out to Motion MKTG — we manage LSA campaigns for contractors and trades businesses across Canada and the US.