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What Are Local Service Ads?

May 24, 2024

What Are Local Service Ads & How Can I Use Them To Get Leads?

Local Service Ads (LSAs) are a powerful tool for small businesses looking to enhance their online presence and attract more local customers. These ads, introduced by Google, are designed to connect local service providers with potential clients in their area. Here’s a closer look at what LSAs are and how they can benefit your business.

Understanding Local Service Ads

Local Service Ads are a type of paid advertisement that appears at the top of Google search results when users search for specific services in their area. Unlike traditional pay-per-click (PPC) ads, LSAs operate on a pay-per-lead basis, meaning businesses only pay when a potential customer contacts them through the ad.

How Local Service Ads Work

  1. Search Query: When a user searches for a service (e.g., "plumbers near me"), LSAs appear at the top of the search results page.
  2. Ad Display: The ads display key information about the business, such as the name, rating, location, and operating hours.
  3. Lead Generation: Users can contact the business directly from the ad, generating a lead. This could be through a phone call or a message.

Benefits of Local Service Ads

1. Increased Visibility

LSAs are prominently placed at the top of search results, ensuring your business gets maximum visibility. This top-of-page placement can significantly increase the chances of attracting potential customers.

2. Cost-Effective

Since LSAs operate on a pay-per-lead model, businesses only pay when they receive a genuine lead. This can be more cost-effective than traditional PPC ads, where businesses pay for each click, regardless of conversion.

3. Builds Trust

Local Service Ads display Google’s “Google Guaranteed” badge if the business passes Google’s screening and qualification process. This badge can help build trust with potential customers, as it assures them of the business’s legitimacy and quality of service.

4. Targeted Reach

LSAs are highly targeted, focusing on users searching for specific services within a defined geographical area. This ensures that your ads are seen by people who are most likely to require your services, leading to higher conversion rates.

LSAs operate on a pay-per-lead basis, meaning businesses only pay when a legitimate client contacts them through the ad.

Setting Up Local Service Ads

The initial set up of LSA's can be tedious, but the return on investment has great potential. The initial process includes:

  1. Create a Business Profile: Fill in essential details such as business name, address, phone number, service areas, and hours of operation.
  2. Complete the Screening Process: Undergo a background check and verification process by Google to qualify for the “Google Guaranteed” badge.
  3. Define Services: List the specific services offered to ensure your ads appear for relevant searches.
  4. Set a Budget: Determine how much you are willing to spend per lead. Google will display your ads based on your budget and the competition in your area.

Enhancing Your Local Service Ads

To get the most out of your LSAs, consider the following tips:

  • Maintain High Ratings: Encourage satisfied customers to leave positive reviews, as higher ratings can improve your ad’s performance.
  • Keep Your Profile Updated: Regularly update your business profile with accurate information and new services.
  • Respond Promptly: Quickly respond to leads generated by your LSAs to increase the chances of conversion.


Local Service Ads are an excellent way for local businesses to enhance their visibility, build trust with potential customers, and achieve cost-effective lead generation. By leveraging LSAs, businesses can connect with more local clients and grow their customer base. If you’re ready to take advantage of Local Service Ads, Momentum Marketing can help you navigate the setup process and optimize your campaigns for success. Contact us today to learn more about how we can support your business in leveraging LSAs to their full potential.

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