If you search for a plumber, roofer or electrician on your phone, the first thing you often see is a block of ads with a green checkmark. Those are Local Services Ads, or LSA. For many contractors, they have become one of the fastest ways to get a phone call from a homeowner who needs help now.
This guide explains how LSA work, what they cost, how Google decides who shows up first, and how to set up your account so you do not waste money.
What Local Services Ads Actually Are
Local Services Ads are a separate Google ad product built for service businesses. They sit above the regular search ads and above the Map Pack. Each listing shows your business name, star rating, review count, service area, hours and a phone button.
They are not the same as standard Google Ads. You do not pick keywords or write ad copy. Google builds the listing from your business profile and matches it to searches for the services you chose.
Why the Green Checkmark Matters
The checkmark means Google screened your business. Homeowners tend to trust it because it signals a real, licensed and insured company. Depending on your trade and state, Google may ask for a business license, proof of insurance and a background check on the owner or technicians.
This screening takes time. Some contractors wait a few weeks, mostly because a document is missing or unclear. Start gathering your paperwork before you open the account.
How You Pay: Per Lead, Not Per Click
With regular pay-per-click ads, you pay when someone clicks. With LSA, you pay when a customer contacts you through the ad by phone call or message. Google calls this a lead.
The price per lead depends on your trade, your city and how much competition there is. A roofing lead in a large metro area usually costs more than a handyman lead in a small town. You set a weekly budget, and Google tells you roughly how many leads that budget may bring in.
You can dispute leads that do not fit, such as wrong numbers, job requests outside your service area or services you do not offer. Google reviews each dispute and may credit your account. Check your lead list every week and file disputes while the details are fresh.
What Decides Who Ranks First
Google does not sell the top spot to the highest bidder alone. Several factors work together:
- Review count and star rating How close your business is to the person searching How quickly you answer calls and messages Your business hours and whether you are open now Your budget and bid settings The number of complaints or disputed jobs on your account How complete your profile is
The takeaway is simple. Reviews and responsiveness count as much as budget. A contractor with a modest budget but fast answers and strong reviews can beat a bigger spender who misses calls.
Set Up Your Account the Right Way
Choose only the job types you actually want. If you are a roofer who does not do gutters, do not turn gutter leads on. Every irrelevant call costs you money and wastes your crew's time.
Set your service area by ZIP code or city, and keep it realistic. If a job is two hours away, it will probably not be worth it. Then upload clear photos of your team and your work, and write a short business description in plain language.
Connect your phone number to call tracking if you can. When you listen to recorded calls, you learn which leads turn into booked jobs and which ones do not. Many contractors find that the first month of data tells them more than any guess.
Answer Fast or Lose the Lead
Homeowners who click an LSA listing often call two or three companies in a row. The first one to pick up usually wins. If you cannot answer every call, set up call forwarding to an office manager or a trusted answering service. Return missed calls within minutes, not hours.
Message leads work the same way. Reply quickly, ask one clear question about the job, and offer a time to visit.
Where LSA Fit in a Bigger Plan
LSA are strong for urgent, high-intent work such as emergency repairs, but they are only one channel. They stop the moment you pause your budget. Organic search and your Google Business Profile keep working month after month. Many contractors run both, using ads for speed and SEO for long-term stability.
If you want help deciding how much to put into each, paid search and LSA campaigns for contractors are a good place to start. The agency states that it builds tracking and landing pages first so calls from paid campaigns can begin within the first weeks, while SEO typically takes months.
Common Mistakes to Avoid
Leaving the account unattended is the biggest one. Lead quality can shift when seasons change or a contractor marketing agency competitor raises their budget. Review your account weekly.
Another mistake is ignoring reviews. Ask every happy customer for a Google review right after the job. Reviews feed your LSA ranking and your regular Map Pack ranking at the same time.
Finally, do not forget to update your hours. If your listing shows you as open at 6 p.m. and no one answers, your responsiveness score can suffer.
How to Know If LSA Are Working
Track three things: cost per lead, cost per booked job and revenue per job. A cheap lead that never books is not cheap. A pricey lead that turns into a full roof replacement may be a bargain. Compare numbers month to month rather than judging a single week.
For the official rules on eligibility, verification and billing, read the Google Local Services Ads Help Center, since Google updates its requirements from time to time.
Have questions about your own account? Reach out to Contractor Growth and describe your trade and service area.