If you run a trade or a service business, you may have seen a set of listings right at the very top of some Google searches, above the regular ads, each with a star rating and a small green tick. Those are Local Services Ads, and the tick is the Google Guaranteed or Google Screened badge. They work quite differently from the Google Ads most businesses know, and for the trades they suit, they can be one of the more efficient ways to buy leads. They are also not available everywhere, so it pays to be clear-eyed about what they are before you build a plan around them.

What Local Services Ads actually are

Local Services Ads, usually shortened to LSAs, are a separate ad format aimed at local service businesses. The headline difference is how you pay.

  • Regular search ads charge you per click. You pay every time someone clicks, whether or not they ever contact you.
  • LSAs charge you per lead. You pay when a potential customer calls or messages you through the ad, not when they simply tap it.

That shift changes the economics. With LSAs you are paying for an actual enquiry rather than for traffic that may or may not turn into one, which is why they appeal to businesses where each genuine lead is worth a lot.

The other defining feature is placement. LSAs sit above the standard search ads and above the map pack on eligible searches, so they occupy the most prominent space on the page. Each listing shows your business name, rating, review count and the verification badge.

The Google Guaranteed and Google Screened badge

The green tick is the part that makes LSAs distinctive. To run them, your business goes through a verification process before your ads can appear.

For most trades, this is the Google Guaranteed badge, which generally involves licence and insurance checks and background checks where applicable. For certain professional categories the equivalent is Google Screened, which focuses on licence and qualification verification. Either way, the badge signals to searchers that Google has vetted the business to a baseline standard, which can lift trust at the exact moment someone is choosing who to call.

Google Guaranteed also carries a backing element on completed jobs booked through the ad, subject to its own terms, conditions and limits. Treat the specifics as something to confirm in your own account rather than assume, because the details and the categories covered can change over time and by market.

Which businesses are eligible

LSAs are built for local service categories, and availability is the first thing to check, because it varies by country, region and trade. In Australia the format has been rolling out across categories rather than launching everywhere at once, so the honest answer to "can I run LSAs?" is "check whether your category and area are live before you plan around them."

The format is designed for businesses such as:

  • Trades like plumbers, electricians and similar on-site services.
  • Home and property services such as cleaning and maintenance.
  • Some professional service categories, which typically fall under Google Screened.

Because the eligible list and the verification requirements differ by market and shift over time, the practical step is to confirm current availability for your specific trade and location. If LSAs are not yet available to you, standard Google Ads and strong local SEO remain the dependable route, and our paid search service can build that out in the meantime.

How ranking works

LSAs do not run the same per-click auction that regular search ads do. The order in which businesses appear is influenced by a different mix of factors, broadly:

  • Reviews - your rating and the number of reviews, earned through Google's own review process for the format.
  • Responsiveness - how quickly and reliably you respond to the leads that come in. Missed or ignored leads work against you.
  • Proximity - how close you are to the searcher and how your service area is set.
  • Profile completeness and standing - verified status, accurate business hours, and a clean record.

The takeaway is that LSAs reward businesses that actually answer the phone and look after customers, not just the highest bidder. Responsiveness in particular is something many businesses underrate.

Managing leads and disputing the bad ones

Because you pay per lead, lead quality matters more than with click-based ads, and Google gives you a way to flag leads that should not be charged.

You can dispute leads that are not genuine - spam, wrong numbers, jobs well outside your service area, or enquiries for services you do not offer. Approved disputes are credited, so it is worth reviewing your leads regularly and disputing the invalid ones promptly rather than letting them slide. Keeping notes on each lead also helps you judge whether the channel is paying its way.

Two habits make the difference here. First, respond fast, because speed both wins jobs and supports your ranking. Second, set your service area and the job types you accept accurately, so you attract fewer irrelevant leads in the first place. Prevention beats disputing after the fact.

How LSAs fit with SEO and standard Google Ads

LSAs are a useful channel, not a complete strategy, and they work best alongside the rest of your local presence rather than instead of it.

They complement your free Google Business Profile, which still drives the map pack and your branded searches. Keeping that profile complete and well reviewed supports your wider local visibility, and the work overlaps with what makes you credible in LSAs. Our Google Business Profile service covers that groundwork.

They also sit naturally beside standard Google Ads. LSAs capture high-intent local enquiries at the top of the page on eligible searches, while regular search campaigns let you target the full range of queries, control messaging and reach searches LSAs do not cover. Many trades run both, using each for what it does best. A locally focused build such as paid search in Sydney is a good example of combining the two around a single service area.

The sensible way to think about it is layered. Local SEO and your profile earn visibility you do not pay per lead for. LSAs buy vetted, high-intent enquiries where available. Standard Google Ads fill the gaps and give you control. Used together, they cover far more of the local market than any one of them alone.

Where to start

If LSAs are available for your trade and area, the first steps are completing the verification, setting an accurate service area and job-type list, and building a habit of responding quickly to every lead. Then review your leads regularly and dispute the invalid ones. If LSAs are not yet live for you, focus on your profile, reviews and standard paid search, and revisit LSAs when your category opens up. If you would like help working out whether LSAs make sense for your business and how to combine them with the rest of your local marketing, our team is happy to talk it through.

---FAQ---

Q: How are Local Services Ads different from regular Google Ads? A: The main difference is how you pay. Regular search ads charge per click, while LSAs charge per lead, meaning you pay when someone calls or messages through the ad rather than when they tap it. LSAs also appear above standard ads, show a verification badge, and rank on factors like reviews, responsiveness and proximity rather than a per-click auction.

Q: What is the Google Guaranteed badge? A: It is the green tick shown on LSAs after a business passes Google's verification, which generally includes licence, insurance and background checks where applicable. For some professional categories the equivalent is Google Screened. The badge signals that the business has been vetted to a baseline standard, and Google Guaranteed includes a backing element on qualifying jobs, subject to its terms.

Q: Are Local Services Ads available everywhere in Australia? A: No. Availability varies by trade category and location, and the format has been rolling out across categories rather than launching everywhere at once. The practical step is to confirm whether your specific category and area are currently live before planning around them.

Q: Can I get charged for bad leads? A: You can dispute leads that are not genuine, such as spam, wrong numbers, jobs outside your service area, or requests for services you do not offer. Approved disputes are credited, so it is worth reviewing leads regularly and disputing invalid ones promptly. Setting your service area and job types accurately reduces irrelevant leads in the first place.

Q: Should I use LSAs instead of SEO or standard Google Ads? A: They work best together rather than as substitutes. Local SEO and your Google Business Profile earn visibility you do not pay per lead for, LSAs buy vetted high-intent enquiries where available, and standard Google Ads give you control and reach the searches LSAs do not cover. Many trades run all three.

Want this done properly on your site? We will assemble the team to do it.

Start the conversation