LOCAL SERVICES ADS IN 2026: WHAT CHANGED & WHAT TO DO.

If you've Googled anything about Local Services Ads lately, there's a good chance you read something that's already out of date. Google changed more about LSA in the last year than in the five years before that. Badges, reviews, credits, even where you manage it.

So here's the current version, in plain English. What it is, who can use it, what it costs, how to rank higher and what to do before the big move into Google Ads.

Section 01How LSA works, in 30 seconds

Someone searches "electrician near me." At the very top, Google shows a few local businesses with their star rating, years in business, hours and a badge. That's LSA.

The customer can call you, message you or book with you right from that listing. Each of those is a lead, and that's what you pay for. Someone just looking at your listing? Free. Someone clicking around? Free. You only pay when they reach out.

It's honestly one of the best deals Google offers service businesses. Which is exactly why everyone in your trade wants that top spot too.

Section 02Who can use it

LSA is only open to certain industries, and Canada has a shorter list than the US. In Canada, that generally includes trades like plumbing, HVAC, electrical, locksmiths, pest control and junk removal. Some services you'd expect, like pressure washing, paving and mobile detailing, aren't available in Canada right now.

The list changes, so always check Google's eligibility tool for your exact service and city. If you don't qualify, Search ads are your main tool, and I explain how that compares in Google Ads or Local Services Ads?

Section 03Google Guaranteed is gone. Meet Google Verified.

On October 20, 2025, Google retired the green "Google Guaranteed" and "Google Screened" badges and replaced them with one badge: Google Verified.

The big difference for customers is that the old money-back guarantee (up to $2,000 if they weren't happy) is gone. The badge still tells people you've been checked out by Google, but it's no longer a warranty.

To get verified, Google checks your business. Depending on your country and trade, that can include your business registration, licences, insurance and background checks on the owner or employees who go into customers' homes. It can take a few days to a few weeks, so start early.

Section 04What LSA actually costs

You set what you're willing to pay per lead (or let Google bid for you) and a budget. What you'll actually pay depends heavily on your trade and city, but here's a useful benchmark: SearchLight Digital's early 2026 data on nearly 900 contractors put LSA at about $53 per lead and about $233 per paying customer.

That second number is the one I care about. Not every lead books. If you close 1 in 4 LSA leads, your real cost to win a job is about four times your lead cost. Do that math with your own average job value and you'll know very quickly whether LSA is worth scaling. Full breakdown in What Google Ads Actually Costs.

What about bad leads?

Spam calls, wrong numbers, people asking for a service you don't offer. It happens. Google now credits back a lot of invalid leads automatically, so you don't have to dispute every single one by hand like you used to. Still, check your leads weekly. If you keep getting the same type of junk, it usually means a setting needs fixing, like your service area or job types.

Section 05How to rank higher (and get more leads)

Unlike regular Google Ads, you can't just bid your way to the top. LSA rankings lean on a few things, and most of them are in your control:

• Reviews. This is the big one. Since mid-2025, LSA pulls reviews from your Google Business Profile. More reviews, better rating, more recent reviews. Ask every happy customer, every time.
• Distance. Google favours businesses close to the searcher. You can't move your shop, but you can make sure your service area is set correctly.
• Responsiveness. Answer calls and reply to messages fast. Missed leads hurt your ranking. If you can't answer, pause or adjust your hours.
• Business hours. If you're showing as closed, you're not showing. If you take after-hours calls, set your hours to match.
• Budget and bid. Still a factor, just not the only one. A budget that runs out by noon means you're invisible all afternoon.
• A complete profile. Photos, job types, service areas, business details. Fill in everything.

Section 06The big one: LSA is moving into Google Ads

Google announced that Local Services Ads are becoming a campaign type inside the main Google Ads platform, instead of living in their own separate dashboard. Based on Google's announcements and industry coverage, US accounts started moving in August 2026, and Canadian accounts are scheduled for 2027.

Here's what's expected to change when your account moves:

• Bidding: setting a max cost per lead becomes a Target CPA (target cost per lead) bid strategy.
• Budgets: weekly budgets become average daily budgets.
• Reporting: your historical LSA reports may not carry over.
• Heads-up: Google is emailing account admins about two weeks before an account moves, with a reminder closer to the date.

What to do right now

• Download your LSA reports. Leads, cost per lead, job types, the lot. Once they're gone, they're gone.
• Make sure you know who the admin is on your LSA and Google Ads accounts, so the migration emails don't land in an old employee's inbox.
• Write down your current cost per lead by job type, so you can set sensible targets after the move.
• Keep your reviews and response times strong. That doesn't change.

Honestly, this move is probably a good thing. Having LSA and Search in one place makes it easier to compare them and manage budgets together. But the switch is the kind of moment where settings get messed up and nobody notices for a month. Worth having someone keep an eye on it.

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