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How to set up, optimize, and scale Google LSAs for your home service business. Pay per lead, not per click.
Google Local Services Ads (LSAs) appear at the very top of search results, above even traditional Google Ads. They display your business name, star rating, hours, and the Google Guarantee badge. The biggest difference: you pay per lead, not per click. That means you only pay when a potential customer actually contacts you through the ad. For home service businesses, LSAs are often the single highest-ROI advertising channel available.
The Google Guarantee badge tells customers that Google has verified your business. To earn it, you need to pass background checks, provide proof of insurance, and verify your licenses. If a customer is unhappy with the quality of work booked through your LSA, Google may reimburse them up to a lifetime cap (currently $2,000). This badge builds massive trust. Businesses with the badge see significantly higher click-through rates compared to ads without it.
Start at ads.google.com/local-services-ads. Create your profile by entering your business information, service categories, and service areas. Upload your license and insurance documents. Google will initiate background checks on your business owner and field workers. This process can take 2-5 weeks. Be thorough and accurate. Incomplete or inconsistent information delays approval and can get your application rejected.
LSAs let you advertise in specific service categories. For HVAC, you might choose AC repair, furnace repair, HVAC installation, and duct cleaning. For plumbing: drain cleaning, water heater repair, pipe repair, and sewer services. Don't select categories you don't actually service. Every lead you get for an irrelevant service wastes time and hurts your responsiveness metric. Start with your highest-margin services and expand from there.
LSA budgets are set weekly. Start with a budget that allows for 10-15 leads per week in your market. Lead costs vary dramatically: HVAC leads might cost $20-$40, while plumbing emergency leads can run $30-$60. The actual cost depends on your market's competition, your reviews, and your responsiveness. Track your cost per booked job, not just cost per lead. A $40 lead that becomes a $5,000 HVAC install is an incredible return.
Google ranks LSA listings based on several factors: proximity to the searcher, your review count and star rating, your responsiveness to leads, business hours, and the number of serious or repeated complaints. You can't simply bid higher to get the top spot. The algorithm rewards businesses that provide great service and respond quickly. Respond to every lead within 5 minutes for the best ranking boost.
Not every lead is legitimate. Wrong numbers, spam calls, out-of-area requests, and non-service-related inquiries can all be disputed for credit. Review every lead within 30 days. In the LSA dashboard, click on the lead and select 'Dispute.' Choose the appropriate reason. Provide a clear, factual explanation. Successful disputes typically save businesses 15-25% of their monthly spend. Make this a weekly habit.
LSA rankings are heavily influenced by your Google review count and rating. You need a consistent stream of new reviews. After every completed job, send an automated review request via text. Aim for at least 5-10 new reviews per month. Respond to every review within 24 hours. A business with 200 reviews and a 4.8 rating will consistently outrank a competitor with 30 reviews and a 5.0 rating. Volume and recency both matter.
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