Local Services Ads are the ads at the very top of Google for searches like "plumber near me", with a green "Google Verified" badge and a call button. You pay per lead, not per click. In 2026 Google started moving them into its main Google Ads system. If you are a plumber, HVAC company, electrician, roofer, cleaner, pest control or garage door company, this affects you.
What is changing
- Timing: the first group of US home-service and storefront businesses moved starting in August 2026. Service-area businesses without a storefront follow later in 2026, and the rest in 2027. Google emails the account 14 days before, then 7 days before.
- Same: you still pay per lead (calls and messages), the ads still show in the same spots on Search and Maps, and you still pick services and areas instead of keywords.
- Different: you can no longer set a maximum price per lead. Google uses one target cost per lead for the whole campaign. Your weekly budget becomes a daily budget.
- Your old reports do not come over. Download or screenshot them before your account moves. Lead history and call recordings move to a "Lead Manager".
- The old Guaranteed, Screened and License Verified badges were merged into one "Google Verified" badge, and the money-back guarantee was discontinued.
Disputes: set it up right or pay for junk
You can no longer dispute leads by hand. Google credits leads it decides are invalid, like spam or wrong numbers. It does not credit "we don't do that job" or "that's outside our area". The only protection is choosing your services and service areas tightly when you set it up.
How Google decides who shows first
Google says it looks at how close you are, your reviews (rating and count), how quickly you answer calls and messages, your hours, and complaints. Your budget affects how many leads you get. Missing calls hurts you twice: you lose the job, and you rank lower.
Are they worth it for a small shop?
Owner experiences in 2026 are mixed, and lead prices vary a lot by trade and city. A few patterns came up again and again:
- For eligible trades, owners and ad managers often prefer Local Services Ads over regular search ads on a small budget, because there are fewer settings to get wrong.
- Regular Google search ads on $50 a day in a big metro rarely work for a one-truck business. Clicks can cost $25 or more each.
- Judge it on cost per booked job, not cost per lead. A $90 lead that becomes a $1,500 job is fine; a $90 lead for a $150 job is not.
Before you spend a dollar
- Make your Google Business Profile complete. Your name, address and hours sync from it.
- Get reviews flowing. See our reviews guide.
- Make sure every call gets answered or gets a text back.
- Keep the account in your own name. Whoever runs it for you should be a user on your account, not the owner of it.