"Should we be running those Google Guaranteed ads?"
For many contractors, the answer is yes, but only if the rest of the business is ready for it. Local Service Ads (LSAs) can put you at the very top of Google. They can also burn money if nobody answers the phone.
The short version:
- You pay per lead, not per click.
- Ranking depends heavily on reviews and responsiveness, not just budget.
- They work best alongside a strong Google Business Profile and website, not instead of them.
Table of Contents
What Local Service Ads Are
LSAs are Google's pay-per-lead ads for service businesses. They usually show above regular Google Ads and the map pack, with your name, rating, review count and a Google verification badge. People can call or message you straight from the ad.
With normal Google Ads you pay for clicks, whether or not they turn into calls. With LSAs you pay when someone actually contacts you through the ad.
What Drives the Cost
Lead prices vary a lot by trade, city and season. A roofing lead in a big competitive metro usually costs more than a painting lead in a small town. Google shows estimated lead costs in your account for your area and services, and that is the most reliable number to plan with.
The number that really matters is not cost per lead. It is cost per booked job. If leads are cheap but you only book one in ten, LSAs are expensive. If leads cost more but you book half of them, they can be very profitable.
How to Get Set Up
- Check eligibility. Roofing, HVAC, plumbing, electrical and painting are all LSA categories in most US markets.
- Complete verification. Expect license and insurance checks, and background checks for some roles.
- Link your Google Business Profile. Make sure details match exactly.
- Pick services and areas carefully. Only choose work you want and places you will drive to.
- Set a weekly budget. Start moderate and adjust once you see lead quality.
What Affects Your LSA Ranking
- Reviews: rating, count and how recent they are.
- Responsiveness: answering calls and replying to messages quickly.
- Distance from the customer.
- Budget and bidding, which matter, but are not everything.
- Complaints or licensing problems, which can hurt or pause your ads.
The biggest leak
Missed calls. If LSA calls go to voicemail, you lose the job and Google may show you less. Answer live, or make sure someone calls back within minutes.
Lead Disputes and Credits
Google reviews leads automatically and credits some that are clearly invalid, like spam or wrong numbers. The process is less hands-on than it used to be, so the best defense is setting up services and areas correctly from the start.
When LSAs Make Sense
- You can answer the phone quickly during business hours.
- You already have a healthy number of good reviews.
- You want a steady flow of calls for core services.
When They Do Not
- Your reviews are thin or your rating is low.
- Nobody can reliably answer calls.
- You mainly want big commercial jobs that rarely come through LSAs.
Where LSAs Fit in Your Marketing
LSAs are one channel. They pair well with local SEO, which builds free traffic over time, and Google Ads, which lets you target specific searches LSAs miss. We do not sell leads. We help you build your own lead flow.
Bottom Line
LSAs reward contractors who answer fast and keep reviews coming. Get those two things right first, then turn up the budget.