Local Services Ads.In plain English.

You pay for valid leads, such as calls, messages and bookings, rather than for clicks. Businesses go through screening that varies by category and region and may include license, insurance and background checks.

Google also offers pre-badge ads, which can get leads after preliminary checks but are placed below providers who have completed all the requirements.

Ranking depends on your bid and how likely you are to get a lead, including how responsive you are and your profile's rating, reviews and average response time. Google says missed calls may count against you.

From August 2026 Google is moving Local Services Ads into Google Ads as Performance Max campaigns with pay-per-lead goals, starting with select US businesses. You still pay only for valid leads, weekly budgets become daily ones, and manual bidding is going away.

Example: an electrician who misses after-hours calls can slip in the ranking even with a high bid, because Google counts responsiveness.