Google Local Services Ads: how they work and what you’re charged for

The short answer

Google Local Services Ads are pay-per-lead ads for verified local businesses, shown at the top of search results with a Google Verified badge. You pay when a customer calls, messages or books through the ad, not per click, and you set a weekly budget. Google doesn’t publish a price per lead: it varies by location, job and lead type. You don’t need a website, but you do need a verified Google Business Profile.

These are the ads at the very top of many local searches. You pay for leads rather than clicks, and missed calls can count, so what happens when your phone rings matters as much as the ad.

Updated November 5, 2026. We make CoveDesk, which also looks after Google profiles, websites and reviews for small businesses. What this page says about other companies comes from their own pages, linked below. How we check our facts

What you’re charged for

Leads under Google’s help pages
What happens	Charged?
A call you answer, or a call you return	Yes
A call you miss during business hours, if the caller stays on the line for more than 20 seconds	Yes
A voicemail from a customer	Yes
A text or email from a customer	Yes
A booking request (US and Canada)	Yes
The same customer again within 15 days of your last contact, on the same number or email	No
A lead Google finds invalid or low quality	No
A call to a phone menu where the caller never presses a key	No

Google’s page on charges (opens in a new tab) sets these out. So a missed call can cost you the lead fee and the job. If you’re going to run these ads, have someone answering the phone, or at least texting back the calls you miss.

Google says lead prices vary by location, job type, lead type and how you bid, and that message leads usually cost less than phone leads. It doesn’t give a dollar figure, so anyone quoting one is giving their own experience.

Who can use them

They’re available for certain categories, and Google’s list (opens in a new tab) is long: home and trade services, plus groups such as beauty, automotive, pet care and professional services. Some are limited by state. Search for your exact category on that page.

You’ll also need a public, verified Google Business Profile, and a minimum number of reviews, which depends on your services. Google doesn’t give the number on the pages we read.

The checks and the Google Verified badge

What Google checks varies by business and place. It can include identity checks on owners and field staff, business registration, licenses and insurance.
How long it takes: Google says about 3 to 4 weeks after you submit your documents.
Background checks in the US and Canada are free to you and don’t involve a credit check. If one fails, you wait 30 days to reapply, and 180 days after a second denial.
Urgent home services such as electricians, plumbers, HVAC, locksmiths and garage door companies get an extra level of screening.

There’s now one badge, Google Verified, and Google’s page (opens in a new tab) says the money-back guarantee has been discontinued. Our page on Google Guaranteed and Google Verified covers the change. The badge isn’t offered for auto, beauty and dining categories.

How to sign up

Go to Google’s Local Services page (opens in a new tab), or start from your Google Business Profile.
Add your business name, service type and location.
Set your weekly budget.
Complete the screening and verification for your category.
Once approved, your ad runs with call or message buttons. Leads come by email, and you manage them online.

Budgets, bids and ranking

Budget: you set an average weekly budget. Weekly spend can go over it, but not past a monthly limit (opens in a new tab) of your weekly budget × 30.4 ÷ 7. Google doesn’t state a minimum.
Bidding: you can let Google set bids to get the most leads, set a target cost per lead, or set your own maximum. Google says (opens in a new tab) results take about two weeks to settle.
Ranking: Google says (opens in a new tab) each search runs an auction based on your bid, how likely you are to get the lead (including how quickly you respond), and your profile: rating, number of reviews, response time and photos.

That’s why getting reviews and answering quickly help here as well. They’re part of how Google says it ranks these ads.

Local Services Ads or regular Google Ads?

Regular Google Ads are pay-per-click, open to any business, and you choose the keywords. With Local Services Ads, you pay for contacts, and Google picks the searches. If you’re in an eligible category, are ready to answer quickly and can pass verification, they’re a natural first test. Work out what a lead’s worth first with the missed call calculator, and try a small budget before you spend more.

Common questions

How much do Google Local Services Ads cost?

Google doesn’t publish a price per lead. You set a weekly budget, and the price per lead varies by location, job type, lead type and your bidding. Message leads are usually cheaper than phone leads, according to Google.

Do I pay for missed calls?

You can. Google’s page counts a missed call during business hours as a lead if the caller stays on the line for more than 20 seconds. Voicemails count too.

Can I get money back for a bad lead?

Google may credit a lead it finds low quality, sometimes automatically, and you can rate a lead in the Leads menu. Credits usually post to your balance within 30 days. It no longer credits leads for jobs or areas you don’t serve, and health care categories aren’t credited.

Do I need a website?

No. Google says a website isn’t required, but you do need a verified Google Business Profile.

How long does it take to get approved?

Google says verification takes about 3 to 4 weeks once you’ve submitted your documents. A new Google Business Profile can take up to five business days on top.

Are Local Services Ads the same as Google Guaranteed?

They’re related. Google Guaranteed was the old badge on these ads. There’s now a single Google Verified badge, and Google is discontinuing the money-back guarantee.

Do they work with Google Ads?

They’re separate products, though Google says Local Services Ads use Google Ads for billing and payments. You’re charged when you reach a threshold or 30 days after your last payment, whichever comes first.

Sources

What this page says about other companies comes from their own websites, read on November 5, 2026:

Local Services Ads: https://business.google.com/us/ad-solutions/local-service-ads/ (opens in a new tab)
About Local Services Ads: https://support.google.com/localservices/answer/6224841 (opens in a new tab)
Lead charges: https://support.google.com/localservices/answer/7195435 (opens in a new tab)
Lead credits: https://support.google.com/localservices/answer/15100654 (opens in a new tab)
Verification: https://support.google.com/localservices/answer/12174778 (opens in a new tab)
Google Verified badge: https://support.google.com/localservices/answer/16498018 (opens in a new tab)
Budgets: https://support.google.com/localservices/answer/7434558 (opens in a new tab)
Bidding: https://support.google.com/localservices/answer/10125017 (opens in a new tab)
Ad ranking: https://support.google.com/localservices/answer/7527305 (opens in a new tab)

Prices and terms change, so check each company’s website before you buy. Company names are the trademarks of their owners and are used only to identify their services; none of them is affiliated with or endorses CoveDesk. Spotted something out of date? Tell us and we’ll fix it.

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