TL;DR: A separate Google ad format for service businesses where you pay per qualified lead, not per click, and appear above standard ads.
In a nutshell
Local Services Ads (LSAs) sit at the very top of Google for service searches and show a Google Guarantee or Screened badge. You pay only when a verified lead calls or messages, typically £10 to £40 per lead for UK trades. For example, a Bristol plumber pays roughly £20 per booked enquiry, not per click.
Quick answer: Local Services Ads (LSAs) are a separate Google Ads format for service-based local businesses. Instead of paying per click, you pay per lead. LSAs appear at the very top of Google search results, even above traditional Google Ads, and feature the Google Guarantee badge for businesses that pass background and licence checks. For eligible service businesses (plumbers, electricians, lawyers, locksmiths, etc.), LSAs are often the highest-converting paid channel available.
How LSAs Differ from Google Ads
- Pay per lead, not per click. You only pay when a verified lead contacts you (call, message, or booking).
- Top placement on the SERP. LSAs appear above traditional ads and the local pack.
- Trust badges. Google Guarantee or Google Screened badge on every listing.
- Verification required. Background checks, insurance, and licensing must be confirmed before LSAs go live.
- Limited service categories. Only certain industries qualify (mostly trades, legal, and professional services).
Who Should Use LSAs
LSAs work best for service businesses with:
- Strong local presence and clear service area
- Healthy review profile (4.0 stars or higher across 30+ reviews)
- Capacity to respond to leads quickly (Google rewards fast response times)
- Average customer value high enough to absorb £15-£50+ per qualified lead
Frequently Asked Questions
How much do Local Services Ads cost?
Cost per lead varies by industry and location. UK trade services typically run £10-£40 per lead. Legal services can run £50-£150 per lead. You set a weekly budget and Google charges per qualified lead until the budget is exhausted.
Can I dispute LSA charges?
Yes. If a lead is spam, irrelevant, or out of your service area, you can request a credit through the LSA dashboard. Google approves credits at a roughly 30-50% rate depending on the dispute reason.
Do reviews affect LSA performance?
Significantly. Both review count and average rating influence ad rank within LSAs. Businesses below 4.0 stars often struggle to compete; 4.5+ with 50+ reviews usually outperforms the local average.
Are LSAs available everywhere?
Service categories vary by country and region. As of 2026, LSAs are widely available across the UK in major cities. Some smaller towns and specialised services may have limited availability.
Take this further
Local Services Ads can be transformative for the right service businesses. We've helped clients add LSAs alongside traditional Google Ads for compounding lead growth.
Ready to apply this to your own account? Book a free discovery call, or explore our PPC packages.