Google Ads Local Service Ads: LSA Strategy for Service Businesses

If you are a plumber, lawyer, or electrician, Google Search Ads (PPC) are no longer the top of the page. Local Service Ads (LSAs) have taken over the penthouse. They appear above the PPC text ads and above the Map Pack. They don't use keywords. They don't use ad copy. They use proximity, reviews, and badges.

The most critical difference? You pay per lead, not per click. If a user clicks your LSA profile but doesn't call you, you pay $0.

In this guide, we break down the LSA Ranking Algorithm, the dispute process for bad leads, and how to maintain the coveted "Google Guaranteed" badge.

The Financial Logic of Pay-Per-Lead

Standard PPC is risky for small businesses because a click ($20) might turn into a bounce. LSA is risk-free if you answer the phone.

• PPC: 10 clicks @ $20 = $200. 1 call. CPA = $200.
• LSA: 10 profile views = $0. 1 call = $50. CPA = $50.

The Volume vs. Cost Tradeoff: LSA leads are cheaper and higher intent, but volume is limited by the "3-Pack" layout. You cannot scale exclusively on LSAs. You must run PPC alongside it.

Theory: How LSAs Rank

Since you can't bid on keywords, how does Google decide who shows up first?

1. Responsiveness: (The most important factor). Did you answer the phone? If you miss calls, your ranking tanks immediately.
2. Reviews: Quantity and Score.
3. Proximity: Distance from the searcher.
4. Business Hours: Are you open right now?
5. Bidding: You can bid "Max per Lead," but it has less weight than responsiveness.

Framework: The Review Velocity Matrix

You cannot rest on your laurels. A business with 50 reviews that got 5 new ones this week will outrank a business with 500 reviews that got 0 this week.

The Strategy:

• Trigger: Service completed.
• Action: SMS link to the LSA-specific review page (not the GMB listing).
• Goal: 2 new reviews per week minimum.

Execution: Getting Google Guaranteed

The Google Guaranteed badge (Green checkmark) is the gatekeeper. To get it, you must pass a background check (Pinkerton).

1. Business License Check.
2. Insurance Check.
3. Background Check (Owner + Field Employees).

Warning: This process takes 3-5 weeks. Do not promise a client they can launch LSAs tomorrow. Start the paperwork today.

Advanced Strategy: Disputing Bad Leads

Since you pay for calls, you will inevitably pay for spam. "Hi, are you hiring?" -> That cost you $50. Google allows you to Dispute these charges.

The Dispute Workflow:

1. Log in to the LSA Dashboard app (Mobile is best).
2. Listen to the call recording.
3. If it is:
   • Solicitation/Spam
   • Wrong Service (They asked for Roofing, you do Plumbing)
   • Outside Service Area
4. Click the 3 dots → Dispute.
5. Select reason.

Success Rate: We see about 85% of valid disputes credited back to the account. That is pure margin returning to your pocket.

Case Study: The HVAC "Season" Scale

Client: HVAC Company in Florida Challenge: Summer is peak season. Search CPCs hit $90.

The Strategy:

1. LSA Max Bid: We set the bid to "Maximize Leads" (Unlimited).
2. Responsiveness: The client hired a 24/7 answering service to ensure 0 missed calls.
3. Review Blast: We emailed all customers continuously from the stored CRM list.

The Result:

• LSA Volume: 350 Calls in July.
• Cost Per Lead: fixed at $38.
• PPC Volume: 100 Leads at $150 CPA.
• Blended CPA: Dropped from $150 to $62.

Pitfalls to Avoid

1. Missing Calls

If you miss 3 calls in a row, Google will ghost your ad. They essentially "turn you off" to protect the user experience. Rule: If you cannot answer (e.g., lunch), verify your Business Hours settings are accurate or turn on "Ad Schedule."

2. Confusing GMB with LSA

Your Google My Business (Map) reviews feed into your LSA. But your LSA budget does not affect your Map ranking. They are separate ecosystems.

3. Ignoring the "Job Type" Settings

In settings, you can toggle specific jobs. If you are a Plumber but don't do "Drain Cleaning," toggle it OFF. Otherwise, you will pay $50 for a drain cleaning lead you have to turn down.

Summary

LSA is the highest-quality lead source on the internet for local service businesses.

Your LSA Checklist:

1. Start the Background Check today.
2. set up a review generation process.
3. Audit your Job Types settings.
4. Designate a "Dispute Champion" to listen to calls every Friday and claw back budget.

Pick up the phone, or get off the platform.