How to Set Up Google Local Services Ads: A Contractor's Guide

Local Services Ads put your business at the top of Google with a Google Verified badge, and you pay per lead. Setup takes longer than a normal ad because Google screens you first. Here is the whole process in order, from Google's own help pages.

Google Local Services Ads (LSA) are the listings at the very top of a search like "electrician near me", above the regular ads and the map. A customer taps to call, message or book you. With Local Services Ads you pay for leads related to your business and services, not for clicks. Before your ad can run, Google checks your business. That screening is the slow part, so it pays to have everything ready before you start.

Key takeaways

Check that your trade is on Google's eligible list and that you have a verified Google Business Profile before you begin.
Screening can include background, license, insurance and business registration checks, and it varies by trade and state.
Set a weekly budget; Google never charges more than your monthly max. Its recommended bidding mode is Maximize leads.
Answer every call. Missed calls can still be charged and they count against your ranking.
Review charged leads every week and report bad ones in the feedback survey.

Step 1: check that your trade and area qualify

Local Services Ads are only open to certain categories and areas. Google's getting started page lists them, and many trades are on it: Plumbers, Electricians, HVAC, Roofers, Painter, Handyman, House cleaning services, Pest control services, Garage door services, Locksmiths, Tree services, Junk removal services, Fencing services, Flooring services, Lawn care services and more. Some trades are not, so check yours by name. Our leads guides by trade say whether each trade is on the list.

Step 2: get your Google Business Profile verified

Google says Local Services advertisers must have a public, verified Google Business Profile. Google matches the ad to your profile, and the person setting up the ads must be an owner or manager of that profile. If yours is not verified yet, do that first; our guide to verifying your Google Business Profile walks through each method.

Local Services Ads reviews are managed through your Google Business Profile, not the ads account. That means the reviews customers leave after your ads run also build your regular profile, which is one reason Local Services Ads and the free side of Google work together.

Step 3: sign up and pass screening

Start at Google's Local Services Ads page (ads.google.com/local-services-ads) and enter your business details, trade and service area. Then Google screens you.

Google's screening varies by category and location and may include background, business registration, insurance and license checks, plus minimum reviews. Google's requirements list general liability insurance and, for many categories, professional liability insurance, plus state license checks where they apply.

In applicable categories, every worker who performs core services for customers must pass a background check, not only the owner. Google says its background check does not involve a credit check, and businesses are not charged for it. After a failed background check, Google says you wait 30 days to reapply, and 180 days after a second denial.

Some advertisers get accelerated verification and then have 14 days to finish the remaining steps to keep the ad running. Gather your license number, insurance certificates and business registration before you sign up, and use the exact business name that is on those documents.

Pre-badge adsGoogle offers pre-badge ads while you finish onboarding, but not for garage door services or locksmiths. Pre-badge listings show below providers who have finished all onboarding. You still need to finish every requirement to get the badge.

Step 4: set your budget and bidding

You set an average weekly budget. Google says you can spend more than that in a given week, but never more than your monthly max.

A bid is the most you would pay for a lead. Google offers Maximize leads, Target cost per lead and Max per lead bidding. For Maximize leads, Google recommends a minimum budget of 10 leads per week. Google says it takes about 2 weeks to see accurate results as its model learns your business.

Google says lead prices vary with your location, the job type, the type of lead and your bidding mode. It does not publish a price list. Start with a budget you can afford to test for a month, then judge it by jobs won, not leads. The free cost per lead calculator turns a month of LSA spend into what each booked job really cost.

Step 5: choose job types and service areas

Google suggests setting service areas broadly, such as your whole county, and selecting every job type you perform. Only pick job types you actually want; if you keep getting leads for work you do not do, narrow the list. Google's help page on leads says narrowing your targets can cut unwanted leads, though it may also cut volume.

Add good photos of your team, your trucks and your finished work. Google ranks Local Services ads by your bid and profile quality: rating, number of reviews, response time, photos and the verification checks you completed.

Step 6: get your first reviews in

Google recommends 5 or more reviews, and says some business types need 5 reviews to show. Ask your recent customers now, before your ads go live, with a link straight to the review form. Google says offering incentives, like free or discounted goods or services, in exchange for reviews is strictly prohibited.

The free Google review link generator makes the link and a QR code. Koira sends the ask for you an hour after every paid invoice (reviews).

Step 7: answer leads fast and check what you were charged

Leads come in as phone calls and messages through your ad, and customers can also book directly where booking is available. Google says that if you regularly fail to answer calls or respond to messages, your ad ranking may be affected.

Google's help page lists a missed call during your business hours as a valid, charged lead when the caller stays on the line for more than 20 seconds. Follow-up calls or messages from the same customer are not charged again when there is contact within 15 days from the same number or email.

Google says it assesses lead quality over a 30-day period and credits leads it finds to be poor quality, duplicate or invalid. If you think a lead was poor quality, you can say so in the feedback survey for that lead. Google says it may occasionally credit leads reported that way. Each lead shows a charge status in Google Ads: charged, not charged, in review or credited.

Every week	Why
Check the charge status of each lead	Spot leads that should be credited
Use the feedback survey on bad leads	Google may credit them and learns what you do not want
Call back every missed lead	You may already have paid for it
Look at which job types bring booked work	Trim the ones that do not

Google says message leads are typically priced lower than phone leads, though not always. Turning on message leads gives customers a way to reach you when you cannot answer, and Koira's receptionist texts back missed calls in about a minute with three open times.

What the badge says now

Google replaced its older badges, including Google Guaranteed, with a single Google Verified badge for all advertisers. Google discontinued the Money Back Guarantee that came with the Google Guarantee badge. See what happened to Google Guaranteed for what that means for customers and for your ads.

Questions contractors ask

How long does it take to set up Local Services Ads?

It depends on how fast you complete Google's screening, which varies by trade and state and can include background, license and insurance checks. Have your documents ready before you start.

How much do Local Services Ads cost?

Google does not publish a price list. Its help page says lead prices vary by location, job type, lead type and bidding mode. You set a weekly budget and never pay more than your monthly max.

Do I need a website for Local Services Ads?

Google requires a public, verified Google Business Profile. A website helps customers who look you up, but the profile is the requirement.

Can I pause Local Services Ads when I am busy?

Yes. Google's getting started page lists pausing your ad when you are too busy as one of the things you can do in your account.

Do I pay for leads I cannot take?

If they are valid leads, yes. Missed calls during business hours count when the caller waits more than 20 seconds. Report leads that are spam or outside your area in the feedback survey.