Google Local Service Ads: The Contractor's Ultimate Lead Generation Machine
How to dominate the top of Google, get qualified leads calling you directly, and only pay when customers actually contact you.
Dan Ottenad
Bottom Line Up Front
Google Local Service Ads (LSAs) put you at the absolute top of search results—above regular ads, above Google Maps, above everything. You only pay when someone calls or messages you directly. Most contractors are leaving thousands of dollars on the table every month by not running LSAs. Here's how to set them up, get Google Guaranteed status, and dominate your market.
What Are Google Local Service Ads (And Why They're Different)
Let's start with what makes LSAs completely different from everything else you've tried for marketing.
When someone searches "plumber near me" or "general contractor in [city]," here's what they see on Google:
Notice where LSAs sit? At the very top. Before everything else.
But here's what makes them special: you only pay when someone actually contacts you. Not when they click. Not when they visit your website. Only when they call or message you directly through the ad.
Regular Google Ads
- •Pay for every click ($15-$150+ per click)
- •Many clicks don't convert to calls
- •Competing against national companies
- •No trust indicators
Local Service Ads
- •Pay only when they contact you ($15-$60 per lead)
- •Higher intent—they're ready to hire
- •Only local contractors show up
- •Google Guaranteed badge builds trust
Why LSAs Crush Every Other Marketing Channel
I'm going to give you real numbers from contractors we work with because most marketing companies won't tell you the truth about what actually works.
Real Example: HVAC Contractor in Phoenix
- •$4,500/month ad spend
- •180 clicks per month
- •12 phone calls
- •3 new customers
- •$1,500 cost per customer
- •$3,000/month ad spend
- •65 qualified leads
- •65 phone calls (100% contact rate)
- •11 new customers
- •$273 cost per customer
The Google Guaranteed Badge: Your Unfair Advantage
This is the secret weapon most contractors don't understand. That green checkmark badge next to your business name isn't just a pretty icon—it's a trust signal that dramatically increases your call rate.
What "Google Guaranteed" Actually Means
Google has verified your business, checked your licenses, reviewed your insurance, and run background checks on you and your team. If a customer isn't satisfied with your work, Google will refund them up to $2,000.
- 42% higher click-through rate
- Instant credibility with new customers
- Stands out from competitors
- Higher position in LSA results
- Lower visibility in results
- Less trust from potential customers
- Competing at a disadvantage
- Missing the #1 trust signal
Important: You Can Run LSAs Without Google Guaranteed
But you're shooting yourself in the foot. Contractors with the badge get 2-3x more calls than those without it. The verification process takes 5-7 business days. Do it first, then turn on your ads.
How to Get Google Guaranteed Status (Step-by-Step)
This is the part that scares most contractors away. Don't let it. The process is straightforward if you have your documentation ready. Here's exactly what you need and how to do it.
Gather Required Documents
Your current, valid business license for your city/county. Must match your business name exactly.
Contractor's license, HVAC license, plumbing license, etc. Whatever your trade requires in your state.
General liability insurance (minimum $1M) and workers' comp if you have employees. Must be current.
You and anyone who will perform services must pass a background check. Google handles this part.
Sign Up for Local Services Ads
Go to ads.google.com/localservices and click "Get Started." You'll create your profile:
- Business name, address, phone number (must match Google Business Profile)
- Service areas (cities you serve—be specific)
- Services offered (choose all that apply, but be realistic about what you actually do)
- Business hours
Upload Documentation
Upload clear, readable copies of all required documents. Common mistakes:
- Blurry photos—use a scanner if possible
- Expired documents—check dates
- Name mismatches—everything must be consistent
Complete Background Checks
Google will send you a link to complete background checks. This includes:
- SSN verification
- Criminal background check
- Sex offender registry check
Processing time: 3-5 business days after submission.
Wait for Approval
Google will review everything. Total timeline: 5-7 business days if you submitted everything correctly. You'll get an email when you're approved.
Pro Tip: Don't wait to get rejected. Double-check that every document is clear, current, and matches your business name exactly before submitting.
Setting Up Your LSA Campaign for Maximum Results
Getting approved is only half the battle. Now you need to set up your campaign correctly so you're not wasting money on bad leads or missing out on good ones.
1. Set Your Weekly Budget
LSAs use a weekly budget. Here's what to expect based on market size:
Start conservatively. You can always increase your budget. Begin at the lower end of your market range and scale up as you see results.
2. Choose Your Services Wisely
You can select multiple services, but here's what most contractors get wrong:
- • Selecting every service Google offers
- • Including services you rarely do
- • Choosing services outside your expertise
- • Listing services you can't do right now
- • Focus on your 3-5 core services
- • Choose high-margin work
- • Select services you're licensed for
- • Start narrow, expand later
Every service you select increases your lead volume, but if you're getting calls for work you don't want to do (or can't do well), you're paying for leads you'll reject. That's wasted money.
3. Set Up Call Handling
LSAs give you a Google-forwarded number that tracks all calls. This is critical because:
- Call RecordingGoogle records every call for quality purposes (and to verify you're not getting charged for spam)
- Dispute Invalid LeadsIf you get a spam call or wrong number, you can dispute the charge and get your money back
- Performance TrackingSee exactly which services generate the most calls and adjust accordingly
Answer your phone. Seriously. LSAs work because customers are ready to hire RIGHT NOW. If you don't answer, they're calling the next contractor. Missing calls is like throwing money in the trash.
4. Enable Booking Through LSAs
Google recently added "Book Online" functionality. When enabled, customers can request quotes through a form instead of just calling.
- +Captures after-hours inquiries
- +Some customers prefer forms over calling
- +More detailed project information upfront
- −Lower conversion rate than phone calls
- −You still pay the same per lead
- −Requires fast follow-up (within 5 minutes)
Recommendation: Enable it, but prioritize phone calls. Call form leads within 5 minutes or they'll already be talking to someone else.
How to Rank Higher and Get More Leads
Having LSAs running is good. Ranking at the top of LSAs is game-changing. Here's how to dominate your market.
LSA Ranking Factors (In Order of Importance)
This is the biggest factor by far. LSAs heavily prioritize businesses with:
- •50+ reviews (the more the better)
- •4.5+ star rating
- •Recent reviews (within the last 30 days)
- •Detailed reviews (not just "Great job!")
Action Item: Ask every happy customer for a Google review immediately after completing the job. Make it easy with a direct link.
Google tracks how quickly you respond to leads and how often you answer calls.
- Answer within 3 rings whenever possible
- Respond to messages within 5 minutes
- Keep your availability updated (don't show as available if you're not)
Warning: If your answer rate drops below 70%, Google will lower your ranking significantly. Answer your phone.
Google prioritizes businesses closest to the person searching. You can't control this, but you can:
- •Ensure your business address is accurate
- •If you serve multiple areas, consider setting up multiple locations (if legitimate)
Having a higher budget doesn't directly increase your ranking, but running out of budget mid-week does hurt you. Set your weekly budget high enough that you never hit the cap.
The Fast Track to Dominating LSAs
Get Google Guaranteed, set up tracking, answer every call, start collecting reviews
Push hard for reviews from every customer. Goal: 20+ new reviews this month
Fine-tune services based on performance, maintain review velocity, increase budget if needed
7 LSA Mistakes That Cost You Money
1. Not Disputing Invalid Leads
You will get spam calls, wrong numbers, and people outside your service area. Dispute these within 30 days and you'll get your money back. Most contractors never do this and waste 15-20% of their budget.
2. Selecting Too Many Services
Every service you add dilutes your budget. If you're a roofing company that also does gutters, but 80% of your revenue comes from roofing, don't select "siding, windows, decks, and painting" just because you can do them.
3. Letting Your Budget Run Out Mid-Week
When you hit your weekly budget cap, your ads stop showing. Google also penalizes you in future rankings. Set your budget high enough that this never happens.
4. Poor Call Handling
"Let me call you back" or "Can you send me your info by email?" = You just paid $40 for a lead you'll probably never close. These customers are shopping NOW and calling multiple contractors.
5. Ignoring Your Review Strategy
LSAs live and die by reviews. If you're not getting at least 5-10 new reviews per month, you're going to get buried by competitors who are.
6. Not Tracking Performance by Service
LSAs show you exactly which services generate calls and which ones convert to customers. If "drain cleaning" gets 20 calls a month but you book zero jobs, turn it off and reallocate that budget.
7. Running LSAs Without Google Guaranteed
I've seen contractors run LSAs for months without the badge because "the application was too much work." They're paying the same price as competitors but getting 60% fewer calls.
The Bottom Line
Google Local Service Ads are the highest-converting, most cost-effective lead generation channel for contractors—period. You pay only when customers actually contact you, you get massive trust signals with Google Guaranteed, and you show up at the very top of search results.
Most contractors won't do this because the setup seems complicated or they're skeptical of "another marketing thing." That's your competitive advantage.
Get Google Guaranteed, set up your campaign correctly, collect reviews aggressively, and answer your phone. Do those four things consistently and you'll dominate your market.
Ready to Get Started?