What Are Local Service Ads for Contractors

Local Service Ads are advertisements specifically designed for contractors in all trades (remodelers, deck builders, roofers, landscapers, etc.)

They work by showing your business first on Google Maps, when people look for the services you offer.

They’re great because:

But, as much as we recommend Google LSA…

It lacks a very important aspect that can be very frustrating for contractors.

The number of leads from Local Service Ads, the job type, location, charge status, and intake date.

What Exactly Are Local Service Ads?

Local Service Ads (or LSA)are ads specifically designed for home service contractors, placing your contracting profile higher on Google so that more local homeowners can see you and reach out.

Many contractors also show up in business directories, but LSAs give you a placement right at the top where attention is strongest.

Don’t know what are the best business directories for contractors? Check out this article.

Basically, LSAs help your contracting business show up at the very top of Google Maps or Google Searches, where your prospects have their eyes on.

Whether you’re a home builder, deck builder, or remodeling contractor, Google local service ads can fill your calendars with nearby homeowners who are ready for a project, without bleeding money on unqualified leads.

How Does LSA ads Work?

LSA ads appear right above the normal Google Ads listings when someone searches for services such as “deck builder near me” or “bathroom remodeling in Omaha”.

This ad will include:

That badge is actually what matters most here; it’s Google’s way of telling people that they can trust this local business and that it is a verified Google business profile with proper business information and business registration in place.

An overview from LSA ads. You can see this campaign spent $2,484 split between phone calls and messages. We dialed-in the campaign so it only spent that money on 24 qualified phone calls (calls over 30 seconds) and 5 messages (that are not spam)

Your Benefits When Doing Local Service Ads

If you’re still relying on word of mouth for referrals, that’s okay; those still bring in organic leads, but Google local service ads can launch your construction business right in front of homeowners who are ready to do business faster than anything else.

Here’s why contractors across the country are using them and why you should, too.

#1. You Show Up First

Google local services ads will show your business on top of the first 3 local businesses Google usually shows. Being the first business people see means you’ll be their first option.

#2. You Only Pay Per Good Leads

With local service ads, you only pay for leads when a potential lead actually reaches out. This keeps your ad spend tied to actual leads and more customers instead of low-quality traffic.

#3. You Can Target Only The Areas You Want

You pick your service area, choose the service categories and service type you want, set your budget, and decide how many leads you want every week.

#4. You’re in Control

Pause your ads anytime, increase your set budget when things slow down, or decrease it when your schedule is full.

How To Set Up Local Service Ads

Setting up local service ads isn’t complicated; you just need to do it right the first time. Here’s how:

Step 1: Make Sure Your Business is Eligible

Step 2: Create or Verify Your Google Business Profile

A Google Business Profile is the small card on Google that shows your hours, photos, reviews, and contact information, and you only need it set up so your LSA account can confirm your business details and business hours.

Step 3: Complete Verification

Step 4: Set Up Your Service Area and Budget

Step 5: Go Live and Track Your Leads

Step 6: Optimize and Improve

Google Local Services Ads dashboard showing the business profile & verification mark that is given to every client that has finished setting up Local Service Ads

The Cost of Local Service Ads in 2025

In 2025, most contractors see between $30 and $100 per lead, depending on the type of work you do and the size of your market.

Google only charges you when someone contacts you through the ad.

You can:

Bad leads are credited toward your next month’s budget.

Like Google Ads and Facebook Ads, you’ll have a budget that you’ll allocate each month to LSA. We recommend you start low, at around $1,500 a month to see the results you’re getting, and only after you dial everything in you should increase that to whatever you’re comfortable.

Pros and Cons of Local Service Ads

Google Local Service Ads can be a helpful tool for contractors, and it is good to know what they do well and where they can feel limited.

Pros

Cons

Tips to Get the Most Out of Local Service Ads

Why Local Service Ads Work So Well for Contractors

Most homeowners stay near the top of the results when they search for help. Local service ads place you right there, in front of potential customers with high intent.

LSA vs Google Ads for Contractors

Local Service Ads focus on calls and messages, while Google Ads for contractors give you more control over keywords, landing pages, and your Google Ads account.

LSA is also a lot faster to set up and you can even do that yourself, but Google Ads requires more maintenance and expertise to manage.

Hence the LSA ads can sometimes be a lot of spam and unqualified leads, whereas Google Ads leads are very high-quality, easy to sell leads that can come at a higher cost.

LSA vs SEO

Organic SEO builds long-term ranking. LSAs deliver immediate results for home service providers who need a steady stream of work.

If you’re in for the long game and you’re not looking to grow aggressively, investing in SEO for contractors is a much better option.

LSA will return quick results, but the moment you’ll stop, the results stop coming.

So, if you want a long-term strategy that gets you free leads, do SEO.

But if you want some quick wins and you’re okay managing the LSA leads, do LSA.

We Can Help You Dominate With Local Service Ads

If you’re serious about scaling your contracting business, local service ads are one of the most effective tools out there.

They bring high-quality leads, build trust with the Google Guaranteed badge, and give you reliable visibility.

But like any marketing system, it works best when it’s part of a bigger strategy, and that includes Facebook ads or Google ads, especially when you want more clients and sales from your online presence.

Our team handles everything:

We manage campaigns for contractors across the entire USA through Local Service Ads, traditional PPC, and Google Ads. These campaigns brought in more than five thousand paid leads between 2023 and 2025.

If you want your growth to feel steady, your lead intake to feel dependable, and your revenue to match the pace you want, we can set up a system that supports it in your service area.