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Google Local Services Ads (LSAs) are the ads that appear at the very top of Google above regular paid ads, above the Map Pack, above everything. They show your business name, rating, years in business, and a green "Google Guaranteed" badge. And unlike regular Google Ads, you only pay when a real person calls or messages you through the ad.
For contractors, LSAs are one of the most cost-efficient ways to generate high-intent leads when set up correctly.
What the Google Guarantee Badge Means
The green Google Guaranteed badge signals to homeowners that Google has verified your business: background checks on owners and employees, license verification, and insurance confirmation. It's a trust signal that meaningfully increases click and call rates compared to unverified listings.
How to Get Set Up for Local Services Ads
- Apply at ads.google.com/local-services-ads
- Complete business verification: license, insurance, and background check (powered by Evident or Pinkerton)
- Set your service area, job types, and business hours
- Set a weekly budget based on how many leads you can handle
- Enable reviews your Google Business Profile reviews feed directly into your LSA listing
The verification process typically takes 1-3 weeks. Start it now even if you're not ready to run ads yet the badge is worth having and the verification can't be rushed.
Stop losing leads to slow follow-up
Contractors who respond within 5 minutes win 80% more jobs. The Booking Flow captures every lead, sends an instant email confirmation, and runs a 5-touch follow-up sequence automatically so you close more without adding staff.
See plans & pricingHow LSA Bidding and Ranking Works
Unlike regular Google Ads where you bid on keywords, LSAs use a simpler model: you set a weekly budget and Google determines when to show your ad based on your responsiveness, reviews, and proximity to the searcher. The key ranking factors are: average response time to leads, review rating and count, service area match, and weekly budget available.
Getting the Most From Your LSA Campaigns
- Respond to every LSA lead within 15 minutes response time is a ranking factor
- Mark invalid leads as disputed within 30 days to get credit (Google will refund leads that don't match your services)
- Keep your business hours accurate LSAs use them to determine when you're available
- Actively generate Google reviews more reviews and higher ratings directly improve your LSA rank
- Expand your service types to cover everything you actually do
LSAs vs Google Ads: Which Should Contractors Use?
LSAs are pay-per-lead and simple to manage. Regular Google Ads are pay-per-click and require more expertise but offer more control. The best approach for most contractors is to run both: LSAs for their simplicity and verified trust signal, regular Google Ads to target specific keywords and direct traffic to custom landing pages.