Google Local Services Ads for Contractors: How They Work in 2026

Local Services Ads (LSAs) are the ads that show up at the very top of Google when someone searches for things like “electrician near me.” They show your business name, rating, a badge, and a button to call or message you.

The big difference from normal Google Ads: you pay per lead, not per click. A lead is a call or message from a potential customer through the ad.

Until late 2025, many trade businesses showed a “Google Guaranteed” badge, which came with a money-back guarantee for customers. In October 2025, Google replaced the older badges with one Google Verified badge.

• It shows that your business passed Google's checks, such as license, insurance, and background checks where required.
• It no longer comes with a money-back guarantee for customers.
• If you were verified before, your badge should have updated automatically, as long as your documents were current.

If your website or marketing still says “Google Guaranteed,” update it.

1. Sign up at ads.google.com/local-services-ads and pick your trade and service area.
2. Upload your license and insurance documents and complete any background checks Google asks for.
3. Choose the job types you want leads for. Leave out work you do not do.
4. Set a weekly budget. Google sets lead prices based on your trade, area, and competition.
5. Link your Google Business Profile so your reviews show on the ad.

This is the part many contractors miss. Google says that if you regularly fail to answer calls or respond to messages, your ad ranking may be affected.

In other words, missed calls do not just lose you that one customer. They can push your ad lower, so you get fewer leads in the future. And you have already paid for the lead you missed.

• Answer every lead fast. You paid for it. Treat it like gold.
• Keep job types tight. Turn off services you do not want, so you are not paying for the wrong calls.
• Mark leads as booked in the LSA dashboard, and give lead feedback. It helps you track what is working.
• Grow your reviews. Rating and review count are shown right on the ad.
• Watch your hours. Only show ads when someone can answer, or make sure your phone is covered 24/7.

Mercvox answers every LSA call in under a second, at any hour, and books the job into your calendar before the caller hangs up. That means you get value from every lead you pay for, and your responsiveness stays high, which helps protect your ranking.

• Google — How Local Services Ads work
• Search Engine Journal — Google confirms new Google Verified badge for Local Services Ads
• Google — Google Guarantee update