If you run a local service business in the UK, your customers are likely to search for what you offer on Google. 

But with so much competition, how can you ensure that your business stands out when potential customers are searching for the services you offer? 

Using local SEO strategies can help to ensure that your Google My Business Profile shows up on the map when customers are searching, but that can take time, and there’s a lot of competition. So what about Google ads? 

Many small businesses can be put off of advertising on Google due to the unpredictability of leads, but there is a solution…. Google's Local Service Ads (LSAs)

LSAs are explicitly designed for local service providers like plumbers, electricians, and cleaners. They help connect you with customers in your area actively looking for the exact services you provide. And the best part? You only pay when someone contacts you through the ad—no more worrying about paying for clicks that don’t turn into leads. 

Local services ads can be fairly straightforward to set up too - so you may be able to avoid using a PPC agency and get straight to it. 

In this guide, we’ll walk you through everything you need to know about Local Service Ads, from what they are and how they work to setting them up for your UK-based business.

Alternatively, check out our Google Ads Bootcamp and take control of your own Google Ads.

What Are Google Local Service Ads?

Local Service Ads are a specialised form of Google Ads that allow businesses to appear at the top of the search results when people search for specific services in their local area. Unlike traditional Pay-Per-Click (PPC) ads, you only pay for leads—not clicks. This means you pay when a potential customer contacts you through the ad, not just when they visit your website.

Key industries that can benefit from LSAs include:

• Electricians

• Plumbers

• Locksmiths

• Roofers

• House cleaners

• Pest control services

• Gardening

• Roofing 

• And lots more… 

These ads display above Google Search results, marked with a Google Guarantee badge, which builds trust and credibility, ensuring potential customers that you’re a verified business.

Benefits of Using Local Service Ads

Google Ads - Pay Only for Leads

With LSAs, you’re not paying for every click on your ad but for actual leads—whether it’s a phone call or a message inquiry.

Build Trust with a Google Guarantee Badge

The green Google Guarantee badge, displayed next to your ad, helps build trust. It means that Google has verified your business, and potential customers are assured that they’re working with a reputable service provider. In some cases, Google may refund the customer if the service doesn’t meet expectations, adding another layer of trust.

Top of Search Results

Local Service Ads appear right at the top of search results—above organic listings and even standard Google Ads—making sure you’re seen first by potential customers.

Control Over Leads

LSAs allow you to dispute leads if you think a call or message isn’t legitimate. This ensures you’re only paying for real leads from potential customers.

How Local Service Ads Differ from Google Ads

Many businesses in the UK are familiar with traditional Google Ads, but LSAs operate a little differently. Here are the key differences:

Google Ads

Pay per lead (calls or messages)

Appears above Google Ads in search results

Displays Google Guarantee badge

Doesn’t require a website

Google Local Service Ads

Pay per lead (calls or messages)

Appears above Google Ads in search results

Displays Google Guarantee badge

Doesn’t require a website

What are the downsides of local service ads? 

While Local Service Ads (LSAs) offer great advantages, there are a few potential downsides to consider:

Quality of Leads

One of the key challenges with LSAs is that, while you only pay for leads, not all of them may be of high quality. You might receive inquiries from people outside your service area, customers looking for services you don’t offer, or even leads that don’t convert into actual jobs. Though Google allows you to dispute low-quality leads, it can still be frustrating to manage, especially if you’re paying for them.

Some Customers Prefer to Check Websites First

Although LSAs place your business directly in front of potential customers, some people still prefer to visit a business’s website before making a decision. LSAs don’t direct users to your site, so if a customer wants to learn more about your business or see additional details that aren't available in the ad, they may skip your service altogether and opt for a competitor whose website is more accessible.

No Website Content, Meaning Buyers Miss Key Information

When customers click on an LSA, they don’t see the full breadth of content you might have on your website, such as detailed service descriptions, pricing, or special offers. This lack of visibility into your business’s unique selling points can sometimes lead to missed opportunities, especially if pricing or specific service details are key factors in the customer’s decision-making process.

Limited Industry Availability

Currently, LSAs are only available to specific service-based industries, which means not all businesses can benefit from this advertising model. If your industry isn’t supported, you’ll need to rely on traditional Google Ads or organic methods to reach potential customers.

Competitive Environment

With LSAs occupying prime real estate at the top of search results, competition can be fierce. Larger businesses with bigger budgets may have the upper hand when it comes to ranking at the top, leaving smaller businesses struggling to maintain visibility.

Verification Process

To get the coveted Google Guarantee badge, your business must pass a verification process, which includes background checks and providing documentation like licences and insurance. This can be a time-consuming process, potentially delaying the launch of your ads.

What Is Google Guaranteed?

Google Guaranteed is a badge that businesses can earn through Google's Local Service Ads programme, indicating that they have been vetted and approved by Google. This badge is displayed next to your LSA, signalling to potential customers that your business is trustworthy and reliable. To receive the Google Guaranteed badge, businesses must undergo a thorough background check, which typically includes verifying licences, insurance, and business legitimacy. In some cases, the business owner and employees may also be subject to background screening.

One of the key benefits of the Google Guaranteed badge is the added layer of confidence it provides to customers. If a customer is unsatisfied with the quality of the service they receive, Google may offer reimbursement up to a certain amount (typically £1,500 in the UK), giving potential clients additional peace of mind when choosing your business over others. This guarantee not only builds trust but also enhances your visibility in competitive search results, helping you attract more qualified leads.

How to Get Google Guaranteed

To get the coveted Google Guaranteed badge, your business must go through a verification process set by Google. This process ensures that only trustworthy and legitimate businesses are awarded the badge, helping customers feel confident in their choice. Here's how you can get Google Guaranteed for your business:

1. Sign Up for Local Service Ads

To start the process, you'll need to sign up for Google Local Service Ads. This is the platform through which the Google Guarantee badge is offered. Once signed up, you can begin the application for verification.

2. Complete a Background Check

Google partners with third-party agencies to conduct background checks on both your business and, in some cases, key personnel like business owners and employees. This may include checks on criminal records, business licences, and insurance details. In the UK, this verification ensures that you meet industry standards and are legally operating within your area of expertise.

3. Verify Your Business Insurance and Licences

You’ll need to provide proof of insurance and any necessary business licences as part of the verification process. Google requires that your business has the appropriate insurance to cover potential damages or issues that may arise from your services, ensuring that customers are protected.

4. Maintain Positive Reviews

While the verification process is primarily based on licences and background checks, maintaining positive reviews from satisfied customers also plays a crucial role. Google uses customer feedback to further ensure that your business provides high-quality services. The more positive reviews you receive, the more trustworthy your business appears.

5. Ensure Compliance with Google's Terms

Lastly, it’s essential to stay compliant with Google’s guidelines for Local Service Ads. This means continuing to meet the standards of service quality, insurance, and legality set by Google. Failing to maintain these can result in losing the Google Guaranteed badge.

Once you pass all of these steps, your business will be awarded the Google Guaranteed badge, which can significantly improve your visibility and trustworthiness in the eyes of potential customers.

How to Set Up Google Local Services Ads in the UK

1. Sign Up for Local Service Ads

Head over to the Google Local Services website and create an account. You’ll need to provide details about your business, including service areas and services offered.

2. Complete Background Checks

For businesses to qualify for LSAs in the UK, you’ll need to pass Google’s background checks. These checks are typically conducted via a third-party agency and may involve reviewing business licences, insurance, and owner details.

3. Set Your Budget

LSAs allow you to set a weekly budget, giving you control over how much you want to spend. Google estimates how many leads you can expect based on your budget, making it easy to forecast ROI.

4. Customise Your Ad

Your ad will display essential details about your business, such as hours of operation, services provided, and customer reviews. Be sure to optimise this information so potential customers know exactly what you offer.

5. Manage and Track Leads

Once your ad is live, you can manage and track incoming leads through the Local Services app or Google Dashboard. You can also dispute any leads that are irrelevant or low-quality to ensure you're not wasting your budget.

Best Practices for Local Service Ads Success

To make the most of Google Local Service Ads (LSAs), you must go beyond setting up your ads and hoping for the best. Here are some best practices to maximise your results, generate high-quality leads, and stand out from your competitors.

Get Google Reviews

Positive customer reviews are key to your success with LSAs. The number and quality of your reviews significantly impact how well your ad ranks in local searches. More reviews help build credibility and trust, which makes potential customers more likely to choose your business over others. Additionally, higher-ranking ads tend to have more reviews, so this becomes a cycle of positive reinforcement.

How to do it

Make it a habit to ask satisfied customers for reviews after each service. You can send a follow-up email or message with a direct link to where they can leave a review. 

Be Responsive

Once your ads generate leads, responding to enquiries promptly is crucial. Google prioritises businesses that reply quickly to customers, and your responsiveness directly affects your ad’s performance. Potential customers often choose the first business to respond, especially for urgent services like plumbing or electrical repairs. A quick reply could be the difference between securing a job and losing it to a competitor.

Tip: Use the Google Local Services app or dashboard to track and respond to inquiries as soon as they come in. Even if you can’t provide an immediate solution, a quick acknowledgement reassures the customer that you're available and ready to assist.

Update Your Business Information

Keeping your business information up to date is essential for ensuring your ads remain accurate and relevant. Details such as your services, service areas, operating hours, and pricing can change over time, and if your ad doesn’t reflect the latest information, you could miss out on valuable leads or end up paying for irrelevant ones.

Tip: Regularly review your business profile in the Local Services dashboard to ensure everything is accurate. If you add new services or expand your coverage area, make sure to update your profile immediately to capture all potential leads.

Monitor Your Budget

LSAs operate on a pay-per-lead model, and Google gives you the ability to set a weekly budget based on how much you’re willing to spend. It’s important to keep a close eye on your budget and adjust it based on the performance of your ads and the volume of leads you’re receiving. If you're consistently getting more leads than you can handle, consider lowering your budget or temporarily pausing your ads. On the other hand, if you want more visibility or leads, you can increase your budget accordingly.

Tip: Use Google’s forecasting tools to estimate the number of leads you can expect for a given budget. Review your spending regularly and make adjustments as needed to ensure your ads are delivering a solid return on investment.

Dispute Low-Quality Leads

One of the benefits of LSAs is that you can dispute leads that don’t meet your criteria. For example, if you receive a lead from outside your service area, or a lead that’s irrelevant to the services you provide, you can dispute it directly through Google’s platform to avoid being charged. This helps ensure that you’re only paying for leads that have a genuine chance of converting into business.

Tip: Keep track of any leads that don’t seem relevant and use the dispute feature when necessary. This not only helps you save money but also ensures that you’re optimising your budget for high-quality leads.

Respond to Reviews

Getting reviews is important, but so is engaging with them. Responding to reviews—both positive and negative—demonstrates that you care about your customers' experiences and are committed to improving your services. This level of engagement encourages future customers to trust your business and shows them that you're actively involved in maintaining a positive reputation.

Tip: Take the time to thank customers for positive reviews and address any concerns raised in negative reviews. Showing professionalism in how you handle feedback will help your business stand out and build long-term trust.

Leverage Analytics to Optimise Performance

Google provides performance insights that can help you understand how your ads are doing. Pay attention to metrics such as the number of leads, conversion rates, and your average cost per lead. These insights can help you determine what’s working and where there’s room for improvement, allowing you to make data-driven decisions to enhance your ad performance.

Tip: Review your performance data regularly and experiment with different strategies. For example, if certain services are generating more leads, consider increasing your budget for those services to capture even more potential customers.

How much do Local Service Ads cost in the UK?

Local Service Ads operate on a pay-per-lead model, meaning costs can vary depending on your industry, location, and competition. On average, a lead might cost anywhere between £10 to £50, depending on the service you offer.Generally speaking, the more expensive your service, the higher the cost per lead. 

What Businesses can use Google Local Services Ads? 

As of now, LSAs are available for specific service-based industries, heres te full list 

• Appliance repair

• Carpentry

• Carpet cleaning

• Countertop Services

• Electrical engineering

• Fencing

• Flooring

• Foundations

• Garage door

• General contracting

• Handyman

• Home improvement

• Home inspection

• House cleaning

• HVAC

• Junk removal

• Landscaping

• Lawn care

• Moving

• Pest control

• Plumbing

• Pool cleaning

• Pool contracting

• Pool contractor

• Roofing

• Siding

• Snow removal services

• Tree surgeon

• Water damage services

• Window cleaning

• Window services

Can I run Local Service Ads alongside Google Ads?

Yes! Many businesses find success by running both LSAs and traditional Google Ads. LSAs help you capture leads from people ready to book services immediately, while Google Ads can drive traffic to your website for those still in the research phase.

Google Local Service Ads are a game-changer for UK businesses looking to dominate local search results. By offering a pay-per-lead model and giving your business the coveted Google Guarantee, LSAs provide an efficient way to get high-quality leads and build trust with potential customers. 

If you’re looking for help with Google ads for your local business, why not take advantage of our Google Ads training, or consider our Google ads agency services. 

Are Google Local Services Ads Worth It?

Whether or not Google Local Service Ads are worth the investment largely depends on your business's goals, industry, and local competition. For many service-based businesses, especially in sectors like plumbing, electrical work, or home cleaning, LSAs can provide a high return on investment due to the pay-per-lead model. Since you're only paying for genuine customer inquiries, there's less risk of wasting your budget on irrelevant clicks, making it a more efficient use of resources than traditional pay-per-click ads.

However, businesses in highly competitive areas may find the cost per lead can increase, and securing the top ad spots may require a larger budget. Additionally, LSAs aren't ideal if your business relies heavily on website traffic for conversions, as these ads don't offer the opportunity to showcase your full online content. For service-based businesses focused on local customer acquisition, though, LSAs can offer a streamlined way to generate quality leads.

Ultimately, if your business qualifies and you’re in a position to handle the verification process and stay responsive to incoming leads, LSAs can be a valuable addition to your marketing strategy, helping you attract more local customers without blowing your budget on low-quality traffic.