Local Services Ads guide
Google Local Services Ads: how they work and whether they're worth it
Updated November 4, 2026
Local Services Ads are the sponsored listings that sit at the very top of Google for searches like "plumber near me" or "divorce lawyer", showing a business name, rating, hours and a badge. You pay for leads (calls, messages and bookings) rather than clicks, and only businesses that pass Google's checks can run them.
They can be a fast source of calls, but they're also a separate system from your Google Business Profile and organic rankings, with their own rules. Here's how they work now.
Google Guaranteed is now Google Verified
For years, Local Services Ads carried a Google Guaranteed badge for home services and Google Screened for professional services such as lawyers and financial planners. On October 20, 2025, Google replaced those badges, and License Verified by Google, with a single Google Verified badge. The money-back guarantee that came with Google Guaranteed ended at the same time.
Businesses that were already verified moved across automatically, as long as their documents stay current. The badge now shows which checks a business has passed, such as licensing or background checks, rather than promising a refund.
How you pay
You set a weekly budget and pay per lead: a phone call, message or booking request that comes through the ad. You don't pay for views or clicks to your profile. Leads that don't qualify, such as spam or a job type you don't offer, can be disputed or credited under Google's current rules, so review your leads regularly.
Cost per lead varies widely by trade and city. Emergency trades in big cities are expensive; specialized services in smaller towns can be cheap.
Who can run them
Local Services Ads are available for many home and professional service categories in the US and Canada, but not all. To qualify, businesses typically go through:
- Business verification, including licensing and insurance where your trade and region require them.
- Background checks on the business and, in many categories, the owner or staff who do the work.
- A minimum number of reviews and an acceptable rating before ads show widely.
What decides who shows first
Google says Local Services Ads ranking depends on factors like:
- How close you are to the customer.
- Your review score and number of reviews.
- How quickly and reliably you answer calls and messages.
- Your business hours, and whether you're open when the search happens.
- Your budget and bids, along with any serious complaints.
Local Services Ads, Google Ads and organic
Local Services Ads, regular Google Ads and the free map pack are three different places to appear, and they don't replace one another. Local Services Ads can bring calls quickly, but they stop the moment you stop paying, and the leads are shared across every business in the ad block. Map pack and organic rankings take longer to earn and cost nothing per lead.
Many local businesses use Local Services Ads to fill gaps while their organic and map visibility grows. If you do, track your map and search rankings separately, so you know whether the free channels are improving underneath.
Questions
Does Google Guaranteed still exist?
No. Google replaced Google Guaranteed, Google Screened and License Verified by Google with one Google Verified badge on October 20, 2025, and the money-back guarantee ended.
Are Local Services Ads pay per click?
No. You pay per lead, such as a call, message or booking request, and you can dispute or get credit for leads that don't qualify under Google's rules.
Do Local Services Ads help my map rankings?
Not directly. They're a separate paid placement. Reviews and responsiveness help both, but map rankings are earned through your Business Profile, website and reputation.
Are Local Services Ads worth it?
Often, for trades where a single job is worth much more than the cost of a lead. Track cost per booked job, not cost per lead, to judge them fairly.
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