How Your Business Can Leverage Google Local Service Ads to Generate Leads

Google Local Service Ads are an effective way to reach your nearby audience and generate leads. These ads are different from Google Ads, as you are only charged if you generate a lead from the ad versus if your audience clicks on it. Your Google Local Service Ad will show up at the top of Google’s search engine result page (SERP), and it will include the following information about your business:

As of October 2025, all Google Local Service Ads will now boast a white checkmark within a blue badge to signify that the business has been background-checked, licensed-checked, and passes Google’s screening and verification process. The former markers were a white checkmark in a green circle to signify the company is Google Guaranteed and a green checkmark to signify the company is Google Screened.

Once verified, the blue badge next to your company’s name is sure to catch audience’s attention. Even better, Local Service Ads populate above other paid ads, which are fighting for this coveted spot.

Check out an example of a Google Local Service ad in the image below. (Please note that the following screenshot was captured before the transition to the blue “Google Verified” badge.)

Note that the Google Local Service Ads show up before the one that is not. Additionally, it is shown above the paid Google Ad. Here are a few ways to improve your Google Local Service Ad placement:

• Ask your customers for excellent reviews! 5 stars is the goal.
• Keep your business hours updated, especially for holidays that fall during the week.
• Triple-check that all your business information is correct. Accurate information helps you receive the Google Verified badge!

Google Local Service Ads Benefits

Placement is a substantial benefit of Google Local Service Ads, along with cost-effectiveness and exposure. People of all ages use the internet to find local businesses, but we want them to do more than just find you. We want your audience to act on their findings. Your Google Local Service Ad allows your interested party to connect with you via text or phone call. Let’s highlight a few more benefits of Google Local Service Ads:

• Placed at the top of Google’s SERP, above other paid ads.
• Connect with an interested audience who wants to convert.
• Build a personalized profile full of accurate information.
• The Google Guarantee badge strengthens your credibility.
• Pay only for leads, not clicks.

Qualifications for Google Local Service Ads

Not all business types can qualify for Google Local Service Ads. However, businesses in more than 100 service categories are currently eligible to become Google Verified. Below are a few service categories to help you get an idea of what qualifies, but you can check out the entire list here.

Cost of Google Local Service Ads

(Remember! Google Local Service Ads are pay-per-lead, not pay-per-click. So, the money you spend on a lead is most likely from an interested party. Win-win!)

The cost of Google Local Service Ads is directly affected by your service industry, business location, and the type of lead you receive. When you receive a lead, it will count be put toward your pre-determined monthly budget. Fortunately, Google Local Service Ads has a safety net in place, so you never go over your monthly budget (cue the audible sigh of relief). If you receive a lead after you’ve reached your pre-determined monthly budget, the money spent on that lead will be credited back to your account.

Valid Leads for Google Local Service Ads

A valid lead is considered any lead that is related to your business or your business services. If any of your leads contact you in the following ways, it is considered a lead from your Google Local Service Ad, and you will be charged:

• Receiving a text message, email, or voicemail from a customer
• Responding to a text message, email, or phone call with a customer

Partner With M&R Marketing for Your Google Local Service Ad Needs! Call us at 478-621-4491

Does your business qualify for Google Local Service Advertising? Let us take it from here. We would love to help your business grow by utilizing this incredible platform. Contact one of our friendly account managers today with your questions.   

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We are obsessing over search engine marketing and all its benefits. If you missed parts one and two of this series, you can check them out here:

• Common SEM Pain Points and How to Fix Them
• Do Microsoft Ads Work? Reasons Microsoft Ads Can’t Be Ignored
• How Your Business Can Leverage Google Local Service Ads to Generate Leads