Google Local Services Ads: costs, setup and the new Google Verified badge

Google Local Services Ads put your business at the very top of a service search and charge you only when someone calls, messages or books. They are also changing more in 2026 than at any point since launch.

The short version

Local Services Ads (LSAs) are Google's pay-per-lead ads for service businesses: plumbers, HVAC companies, electricians, locksmiths, cleaners, lawyers and dozens of other categories. You don't pick keywords and you don't pay for clicks. Google shows your profile, star rating and a trust badge above the regular ads, and you pay for each valid lead, such as a phone call you answer, a message or a booking request.⁴

Two things changed recently. In October 2025 Google replaced the Google Guaranteed, Google Screened and License Verified badges with one Google Verified badge, and the old money-back guarantee went away with them.² Then in July 2026 Google announced that Local Services Ads are moving into the main Google Ads platform as a Performance Max campaign with pay-per-lead goals, starting with a small group of US advertisers in August 2026.¹ And in October 2026, Google stopped showing featured professionals on the ads and made headshots optional.⁹ Canadian businesses still run LSAs the familiar way for now, but the direction is clear.

How Local Services Ads differ from regular Google Ads

If you already run Google Search ads, the easiest way to understand LSAs is to compare them side by side.

The trade-off is control for convenience. You can't write ad copy or exclude bad searches with negative keywords, the way you would in a Search campaign. In return, you skip the website, the keyword research and most of the click waste. For a busy trades business, that is often a good deal.

Google Guaranteed is gone: what the Google Verified badge means

For years, the green checkmark on LSAs meant different things in different industries. Home service pros had Google Guaranteed, which came with a promise to reimburse unhappy customers up to a limit. Professional services such as lawyers and financial planners had Google Screened. Some trades showed License Verified by Google.

Since October 20, 2025, all of them show one badge: Google Verified.² It tells a customer that the business passed Google's checks, which can include a business registration check, licence and insurance checks and background checks on the owner and field workers, depending on the category and location.⁶ It no longer comes with a money-back guarantee. Advertisers who were already verified moved to the new badge automatically, as long as their documents were current.

People still search for "Google Guaranteed" hundreds of times a month in Canada, so expect customers to ask about it. The honest answer: the guarantee programme ended, and the badge now means "verified," not "insured by Google."

The 2026 change: Local Services Ads are moving into Google Ads

Until now, LSAs lived in their own dashboard with their own lead inbox, separate from the rest of your Google Ads account. Google is ending that split. LSAs are becoming a specialised Performance Max campaign type with pay-per-lead goals, managed inside Google Ads.¹

What stays the same matters as much as what changes:

• The ads still show only on Search and Maps.
• Campaigns stay keywordless and pull your details from your Google Business Profile, so edits to your profile flow through automatically.
• You still pay for valid leads (calls, messages and bookings), not clicks.

The rollout started in August 2026 with a small group of US advertisers in categories such as home services, pet care, wellness and education, and Google says it will continue in phases through 2027. Google has not given a date for Canada.¹ Don't let the Performance Max name worry you: this is not the same as the regular Performance Max campaigns we compared in Performance Max vs Search, which buy display, video and Gmail inventory too.

The practical takeaway for Canadian businesses is simple. Your Google Business Profile becomes even more central, because the new campaigns read from it. If your profile name, address and categories don't match your licence and your LSA account, fix that now, before the migration reaches you. Our Google Business Profile optimization guide covers the details.

October 2026: featured professionals and headshots

In October 2026, Google told Local Services Ads advertisers through an in-account notice that featured professionals will no longer show on their ads, and that headshots are now optional and won’t affect whether an ad serves. Google says the rest of the ad, including photos and reviews, stays the same.⁹

The change matters most for law firms and other professional services, where the ad could show a named lawyer or adviser with a photo. Google hasn’t said whether it changes ranking or lead volume, so treat any claim either way with caution for now.⁹¹⁰

What it means for your profile: the trust a face used to carry now has to come from the rest of the listing. Google’s own ranking page says higher quality profiles, including those with images, may rank higher and pay less per lead,³ so keep your business photos current, keep reviews coming and answer leads fast. If you relied on a named professional to build trust, move that into your photos and your profile description.

What Local Services Ads cost

You set a weekly budget and either let Google bid for the most leads or set a maximum price per lead. Lead prices vary with your location, the job type and the kind of lead.⁴ There is no setup fee; you pay only for leads Google counts as valid.

The best recent public data comes from 99 Calls, which published a year-over-year comparison of its managed LSA accounts in September 2026. Lead costs rose between 11% and 69% in most trades, while plumbing actually fell:⁷

Two lessons from that table. First, lead price tracks job value: water damage jobs are worth far more than junk removal, and the leads cost more to match. Second, prices are climbing quickly in most trades, so a lead cost that looked fine last year may not today. Judge LSAs the same way you judge any channel, on cost per lead and, better still, cost per booked job. Our 2026 Lead Generation Report shows how those numbers compare across channels.

How Local Services Ads rank

LSAs run on an auction, but the bid is only part of it. Google weighs your bid together with the quality of your profile, and it says those signals include:³

• Proximity to the person searching, and whether you serve their area.
• Reviews and star rating: more reviews and a higher rating help you rank and win the click. Here is how to get more Google reviews without breaking the rules.
• Responsiveness: answering calls and messages quickly. Missed calls can count against you.
• Business hours: you show more when you are open, and showing as closed costs you leads.
• Verification: verified providers rank above those without a badge.

Google also notes that complete profiles with photos may rank higher and pay less per lead.³ In plain terms, the cheapest way to get more LSA leads is to answer the phone and collect reviews, not to raise the bid.

How to set up Local Services Ads in Canada

Local Services Ads first launched in Canada in Vancouver and Toronto for locksmiths, plumbers and HVAC companies,⁸ and categories have grown since. Availability still depends on your category and city, so check the Local Services sign-up page for yours. Then:

1. Line up your Google Business Profile. Your business name and address should match your licence, insurance and LSA account exactly. Mismatches are a common reason for delays and pauses.
2. Create your Local Services account and pick your job types and service area. Only choose jobs you want; you pay for every lead in those job types.
3. Submit your documents. Depending on your category this can include business registration, proof of insurance, trade or professional licences, and background checks for the owner and anyone who goes into customers' homes.⁶
4. Wait for verification. It commonly takes a few weeks after you submit everything, so start well before your busy season.
5. Set your budget and bidding, add photos, set accurate hours, and turn on messaging and bookings if your category offers them.

If you are in a regulated field, such as law, real estate or financial services, expect extra checks. Our law firm marketing and trades marketing pages go into what each industry needs.

Disputing bad leads

You will get leads that aren't yours: spam calls, wrong job types, people outside your area. Google lets you dispute a charged lead within 30 days. It processes disputes within a week, and credits for successful disputes usually land in your account within 40 days.⁵ Review your lead inbox weekly, mark each lead's outcome, and dispute the ones that don't fit. It adds up quickly, and marking outcomes also helps Google learn what a good lead looks like for you.

Who should use Local Services Ads, and who shouldn't

LSAs are strongest for businesses that answer the phone, serve a defined local area and win jobs on trust. That covers most home service trades. An HVAC company, a plumber or an electrician with good reviews can often get its cheapest booked jobs here. They also suit lawyers, cleaners, movers and pet care providers in categories where Google offers them.

They are a weaker fit if you can't answer calls during business hours, if you have only a handful of reviews, or if your profitable work is a narrow niche that Google's broad job types don't separate well. In those cases, start with local SEO to build reviews and a strong profile, and use tightly targeted Search ads for the specific jobs you want.

The best setup for most local service businesses is both: LSAs at the very top for people ready to call, Search ads underneath for the specific services and areas you want more of, and a strong profile feeding both. If you want help setting that up, our Google Ads team in Vancouver runs all three together, and our guide to what Google Ads cost will help you set the budget.

Sources

1. Search Engine Land: Local Services Ads come to Google Ads via Performance Max (July 2026)
2. Search Engine Journal: Google confirms new Google Verified badge for Local Services Ads (October 2025)
3. Google Local Services Help: About ad rankings
4. Google Local Services Help: How leads work
5. Google Ads Help: Dispute charged leads
6. Google Local Services Help: Understand the screening and verification process
7. Lead Smart Inc. and 99 Calls: Google lead costs rose up to 69% in a year (September 2026)
8. Search Engine Land: Local Services by Google expands beyond the US into Canada
9. Search Engine Land: Google Local Services Ads removes featured professionals (October 2026)
10. Search Engine Roundtable: Google Local Services Ads drops featured professionals, headshots optional

Cost figures come from US campaigns managed by 99 Calls and are in US dollars. Canadian lead prices differ by city and category, so treat them as a direction, not a quote. Google changes Local Services Ads policies often; check the Local Services Help Center before you rely on any rule here.

Frequently Asked Questions

What are Google Local Services Ads?

Local Services Ads are Google's pay-per-lead ads for service businesses such as plumbers, HVAC companies, electricians, cleaners and lawyers. They appear at the top of service searches and on Maps, show your star rating and a Google Verified badge, and charge you for valid leads like calls, messages and booking requests instead of clicks.

How much do Local Services Ads cost?

You pay per valid lead, and the price depends on your trade, location and job type. US data from 99 Calls in September 2026 showed average costs per lead from about $33 for painting and junk removal to $66 for plumbing, $107 for roofing and $215 for water damage, with most trades rising year over year. Canadian prices differ by city.

Is Google Guaranteed still available?

No. On October 20, 2025, Google replaced the Google Guaranteed, Google Screened and License Verified badges with a single Google Verified badge. The new badge shows a business passed Google's verification checks, but it no longer includes the money-back guarantee that came with Google Guaranteed.

What does the Google Verified badge mean?

It means the business passed Google's screening for its category and location. Depending on the category, that can include business registration, licence and insurance checks, and background checks on the owner and field workers. It is a trust signal, not a guarantee or insurance from Google.

Are Local Services Ads moving to Performance Max?

Yes, in stages. In July 2026 Google announced that Local Services Ads will become a Performance Max campaign with pay-per-lead goals inside Google Ads. The ads stay on Search and Maps, stay keywordless and still charge per lead. The rollout began with a small group of US advertisers in August 2026 and continues through 2027. Google has not announced a date for Canada.

Are Local Services Ads available in Canada?

Yes. They first launched in Vancouver and Toronto for locksmiths, plumbers and HVAC companies and have expanded since. Availability depends on your business category and city, so check the Local Services sign-up page for your area.

How do Local Services Ads rank?

Google ranks them with an auction that combines your bid with profile quality. Signals include how close you are to the searcher, your reviews and star rating, how quickly you respond to calls and messages, your business hours and whether you are verified. Complete profiles with photos may rank higher and pay less per lead.

Can I get a refund for a bad lead?

You can dispute a charged lead within 30 days of receiving it. Google processes disputes within a week, and credits for successful disputes usually appear within 40 days. Spam, wrong job types and calls from outside your service area are common reasons to dispute.

Do I need a website for Local Services Ads?

No. Customers contact you from your Local Services profile, so a website isn't required. A strong website still helps your Google Business Profile, local SEO and regular Search ads, which work well alongside Local Services Ads.

Local Services Ads or Google Search ads: which is better?

For most local service businesses, both. Local Services Ads win the top spot and charge per lead with little setup. Search ads give you control over keywords, copy and landing pages for the specific jobs and areas you want. Running both, with a strong Google Business Profile behind them, covers the most of the results page.

How long does Local Services Ads verification take?

It commonly takes a few weeks after you submit all documents, longer if anything needs to be corrected. Start before your busy season, and make sure your business name and address match across your licence, insurance, Google Business Profile and Local Services account.

Do headshots still matter in Local Services Ads?

Not for ad serving. Since October 2026, Google no longer shows featured professionals on Local Services Ads and headshots are optional. Business photos still count, though: Google says higher quality profiles, including those with images, may rank higher and pay lower costs per lead.