Resources · Cost Guide

How Much Do Google Local Services Ads Cost? (2026)

How much do Google Local Services Ads cost? You pay per lead, not per click. In September 2026, contractors paid $42.73 a lead when they spent under $2,000 a month and $75.84 a lead when they spent over $50,000 (SearchLight, 948 contractors). The median contractor spent $4,766 that month and got 86 leads. Signing up costs nothing.

Updated October 2026
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    Local Services Ads cost per lead

    Local Services Ads cost $42.73 to $75.84 a lead in September 2026, according to SearchLight data from 948 contractors.

    What contractors paid in September 2026. The more an account spent, the more it paid per lead.

    Monthly LSA spendCost per leadCost per paying customerClosed return on ad spend
    Under $2,000$42.73$16713.2x
    Over $50,000$75.84$3227.5x

    Source: SearchLight data, published by The Data-Driven Trades, October 6, 2026. 948 contractors, $11.08M in LSA spend, 174,083 leads. The report gives the two end tiers in its text; the tiers in between are in a chart that this page does not copy.

    Where you stand against other contractors that month:

    • Under $44 a lead: top quarter of contractors
    • Top quarter overall: paid $48 a lead and closed a $3,366 average ticket
    • Bottom quarter: paid $72 a lead and closed a $1,001 average ticket
    • Book rate under 32%: bottom quarter. That is usually a phone problem, not a Google problem.

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    Local Services Ads cost by trade

    HVAC contractors paid $60.66 a lead and plumbers $67.05 in September 2026, according to SearchLight.

    TradeCost per lead (Sep 2026)Notes
    HVAC$60.66Book rate 41.4%. Highest average ticket, $2,824.
    Plumbing$67.05Book rate 43.2%. Cheaper per paying customer than HVAC.
    ElectricalAbout 26% lower than HVACLowest cost per booking of any trade, $108.

    Source: SearchLight, September 2026. SearchLight assigns the trade from the campaign name, so treat these as directional. The sample leans toward HVAC, plumbing and electrical. It has no roofing, landscaping or outdoor construction breakdown.

    How much does a contractor spend on Local Services Ads per month?

    The median contractor spent $4,766 on Local Services Ads in September 2026 and got 86 leads, according to SearchLight.

    The median contractor in September 2026:

    • Spent $4,766 on Local Services Ads
    • Got 86 leads
    • Booked 36 customers
    • Closed $35,280 in revenue

    For the 837 contractors who ran LSAs every month from June to September, cost per lead fell from $65.70 to $62.88 and 41.8% of leads booked.

    Not every lead can book

    In the same report, SearchLight graded about 24,600 LSA leads from 121 contractors. 41% could not have booked: phone-menu hang-ups, services the business doesn't offer, empty calls and admin questions. Of the leads that could book but didn't, the most common reason was a planned follow-up (54%).

    How fast and how well you answer decides much of what you get for the money.

    How Local Services Ads billing works

    You pay for each valid lead, not for clicks or views, according to Google's Local Services help pages.

    From Google's own help pages:

    • You pay for valid leads. Not for clicks or views.
    • What counts as a lead: a call you answer or return, a missed call during business hours where the caller stays on the line more than 20 seconds, a text or email, a voicemail, or a booking request.
    • Message leads are usually priced lower than phone leads, though not always.
    • Budget: you set an average weekly budget. You can go over it in a given week, but never over your monthly max.
    • Low-quality leads: Google screens leads before charging, then rechecks charged leads and credits the ones its models flag as low quality. Most credits land within 30 days.
    • No credit for "job type not serviced" or "geo not serviced" leads. Fix those with your service and area settings.
    • Billing runs through Google Ads. You're charged automatically when you hit a payment threshold or 30 days after your last payment, whichever comes first.

    Local Services Ads are moving into Google Ads

    Google is moving Local Services Ads into Google Ads as Performance Max campaigns with pay-per-lead goals.

    • August 2026: the first US home and storefront service advertisers move, including plumbing, HVAC, electrical, roofing, lawn care, pest control and moving.
    • Late 2026: service-area businesses without a storefront and accounts with custom bidding or booking move next.
    • What stays the same: you still pay per valid lead, and your ads show in the same places on Search and Maps.
    • What changes: your weekly budget becomes a daily budget (weekly divided by 7). Your monthly spend is capped at 30.4 times the daily budget. Manual bidding goes away. Your old LSA reports don't carry over, so download them before you move.

    Google Guaranteed is now Google Verified

    Google replaced the Google Guaranteed badge with one Google Verified badge. The money-back guarantee was discontinued. Businesses that already passed verification got the new badge automatically.

    Local Services Ads vs Google Ads

    Local Services Ads charge per lead and Google Ads charge per click.

    ItemLocal Services AdsGoogle Ads (search)
    You pay forEach valid leadEach click
    Typical cost$42.73 to $75.84 a lead (Sep 2026, by spend)$8.33 a click, $90.92 a lead for home and home improvement (2026)
    KeywordsNone. Google matches you by service and areaYou choose and bid on keywords
    BadgeGoogle VerifiedNone
    SourcesSearchLightLocaliQ

    The two lead costs come from different studies, so treat the gap as a direction. Test both in your market and compare cost per booked job.

    For Google Ads cost per lead by trade, see the Google Ads cost guide.

    What does Pinnacle charge to run Local Services Ads?

    Our plans are a monthly fee plus your ad spend. Local Services Ads are part of our Growth Engine plan, from $6,500 a month plus ad spend. It includes:

    • Local Services Ads and Google Ads, tuned every week, including the move into Google Ads
    • Lead Rescue, so missed calls and new leads get a reply
    • Every call and form traced to the ad that brought it, so you see cost per booked job, not just cost per lead

    We've tracked more than $550M in client revenue since 2019.

    See how we run Google Ads and Local Services Ads →

    Common Questions

    Local Services Ads Cost, Answered.

    How much do Local Services Ads cost per lead?

    In September 2026, contractors paid $42.73 a lead when they spent under $2,000 a month and $75.84 a lead when they spent over $50,000 a month, based on SearchLight data from 948 contractors. HVAC averaged $60.66 a lead and plumbing $67.05.

    How much do Local Services Ads cost per month?

    You set the budget. The median contractor in SearchLight's September 2026 data spent $4,766 for the month and got 86 leads.

    Is it free to sign up for Local Services Ads?

    Yes. Google charges only when a customer contacts you through the ad. People who only see your ad cost you nothing.

    Are Local Services Ads worth it?

    For many contractors, yes. In SearchLight's September 2026 data, 837 contractors who ran LSAs all summer closed 8.42 times their LSA spend in revenue, and accounts spending over $50,000 a month closed 7.5 times. Results depend on how fast you answer and how many leads you book.

    What counts as a lead in Local Services Ads?

    A call you answer or return, a missed call during business hours where the caller stays on the line more than 20 seconds, a text or email, a voicemail, or a booking request. Google screens out spam and duplicate contacts before charging.

    How do I dispute a Local Services Ads lead?

    Google now credits most low-quality leads automatically, usually within 30 days. If a bad lead wasn't credited, rate it in the lead feedback survey. Google says it may credit leads reported there. It no longer credits leads for jobs or areas you don't serve.

    What is the difference between Local Services Ads and Google Ads?

    Local Services Ads charge per lead, use no keywords and show the Google Verified badge. Google Ads charge per click on keywords you choose. Google is now moving Local Services Ads into Google Ads, but they stay pay per lead.

    Are Local Services Ads moving to Google Ads?

    Yes. Google started moving US home-service advertisers in August 2026, with more moving in late 2026. You still pay per valid lead and your ads show in the same places. Your weekly budget becomes a daily budget.

    Is Google Guaranteed still a thing?

    No. Google replaced the Google Guaranteed badge with a single Google Verified badge and discontinued the money-back guarantee. Businesses that had already passed verification got the new badge automatically.

    How much does Google Guaranteed cost?

    The badge itself has no separate fee. It now comes as the Google Verified badge on Local Services Ads, and you pay only for leads.

    What does Pinnacle charge to run Local Services Ads?

    Our plans are a monthly fee plus your ad spend. Local Services Ads are part of our Growth Engine plan, from $6,500 a month plus ad spend, together with Google Ads, Lead Rescue and call tracking.

    Keep pricing it out

    Guides, calculators and research

    Sources

    Where these numbers come from

    1. The Data-Driven Trades (SearchLight data), Google LSA Benchmarks: September 2026 (Oct 6, 2026)
    2. Google Local Services Help, How leads work
    3. Google Local Services Help, About automated Local Services Ads lead credits
    4. Google Local Services Help, How to pay for Local Services Ads
    5. Google Ads Help, Local Services Ads transition to Performance Max campaigns with pay-per-lead goals
    6. Google Local Services Help, About the Google Verified badge
    7. Google, Local Services Ads
    8. LocaliQ, 2026 Search Advertising Benchmarks (updated Jun 1, 2026)
    9. Pinnacle prices and client results: our own plans and our clients' tracked calls, forms and booked jobs
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