Google LSA Ad Playbook: What You Need to Know

Google Local Services Ads (LSA) are pay-per-lead ads that appear at the very top of Google search results when users search for services like “plumber near me” or “electrician in [city]. These ads appear above traditional PPC (pay-per-click) ads and are specifically designed for service-based businesses.

Google LSAs tend to have high conversion rates because - Like PPC Ads - they specifically target users who are actively searching for services in their area. Since businesses only pay for verified leads (such as phone calls or messages from interested customers), the return on investment (ROI) can be better than traditional PPC campaigns. Additionally, LSAs display a "Google Guaranteed" badge, which builds trust and increases the likelihood of customer engagement.

Unlike traditional Google Ads, which operate on a pay-per-click (PPC) model, LSAs use a pay-per-lead billing system. Businesses are charged only when they receive a legitimate inquiry, such as a phone call or direct message from a prospective customer. Google allows businesses to dispute fraudulent or unqualified leads to ensure they only pay for relevant inquiries.

LSAs campaigns are typically more expensive than pay per click (PPC) campaigns. For example, the average cost-per-click (CPC) for PPC ads in legal services range from $2.10 - $60.00 depending on certain conditoins like keyword phrase, competition, location/market, etc. Meanwhile, the average cost-per-lead (CPL) in the same location/market ranges from $140 - $250. That said, a lead (generated through LSA ads) is further down the sales funnel than a click on a PPC ad. So in order to truly compare the two you need to look at the phone calls, emails, and form fills generated in a PPC campaign as compared to the leads created in an LSA campaign then compare the dollars spent on each. 

One of the biggest advantages of LSAs is - like Google Pay Per Click Ads - they do not require long-term contracts. Businesses can set a weekly budget and adjust or pause their campaigns at any time. This flexibility makes LSAs a good option for businesses looking for a low-risk advertising strategy with scalable investment.

LSAs are truly geared toward service-based businesses that rely on local customers. Some of the most common industries benefiting from LSAs include:

• Home services – Plumbers, electricians, HVAC technicians, locksmiths, carpet cleaners, and landscapers.
• Legal services – Lawyers, particularly those specializing in personal injury, criminal defense, family law, and estate planning.
• Health and wellness – Dentists, chiropractors, and physical therapists.
• Real estate services – Realtors, property managers, and home inspectors.
• Professional services – Accountants, tax preparers, and financial advisors.

Google LSAs are currently available in many locations throughout the U.S.; however, availability is somewhat limited based on industry and location. This ad format is relatively new and Google is expanding its LSA program to include new service categories and geographical areas all the time. To check if LSAs are available for your business, visit Google’s Local Services Ads page and enter your industry and location ... or simply ask us. We're always happy to do the discovery and share the findings.

Google Local Services Ads can be a powerful tool for local businesses looking to increase their visibility and attract high-intent customers. With a pay-per-lead model, high ROI, and flexible budget options, LSAs provide a good tactic for an integrated search engine marketing (SEM) campaign for service providers looking grow their customer base.

If you’re ready to take advantage of LSAs, start by verifying your eligibility, setting up your profile, and optimizing your ad settings to maximize lead generation. Need help launching or managing your LSAs? Contact us today for expert guidance!