Everything You Need to Know About Google Local Services

So, we all tend to gripe a bit about Google. Its shape-shifting algorithms are shrouded in mystery, and it seems hell-bent on squeezing every last ad dollar out of home services businesses.

Google’s mission is to “organize the world’s information and make it universally accessible and useful.” So Google’s just trying to make it easy for people to find what they need.

And if what someone needs is plumbing or HVAC services, then we really ought to look at Google like a business partner

With that in mind, let’s talk about Google’s most recent addition to its line-up: Local Services.

Complete Guide to Google Local Services

Google Local Services puts your business at the very top—literally. Here’s how to claim your spot.

What is Google Local Services for Home Services Companies?

Local Services is a pay-per-lead (as opposed to pay-per-click) ad program.

Local Services ads show up at the top of the search engine results page (SERP). Way above organic results, above the map pack and above text ads. We’re talking about the top few spots of the SERP.

To Get Started With Local Services:

Set up your business profile and establish your budget.
Google makes sure you meet and then runs background checks for your techs. As a Local Services customer, you’re required to keep Google in the loop on new hires, too. The background check is currently free.
Assuming everything checks out, your ad goes live.

How Google Local Services Leads Work

When locals search for what you offer, your Local Services ad shows up at the top of the SERP. Depending on your service area, your ad might appear with other Local Services businesses or alongside businesses from other “trusted sources” like Home Advisor or Porch.

Here’s what happens next:

Customers can click your ad directly, or they can click “More plumbers in…” to go to a page with all Local Services listings.
When a customer clicks your ad, they see details about your business, including your star-rating and reviews.
Customers can then choose to connect with you in one of three ways:
- By clicking the phone number in your ad. The phone number Google displays is actually a Google number that forwards to your line. You’ll hear “call from Google” so you know the lead came from your Local Services ad.
- By sending a message (if you enable that feature). You can see and respond to messages through the free Local Services app.
- Or by booking an appointment right through your Local Services ad, if you use Service Titan or Housecall Pro.
You don’t pay for views. You only pay when someone actually reaches out—whether by phone, message, or appointment. If you happen to receive an invalid lead, you can dispute the charge.
Customers who hire you via your Local Services ad are encouraged to leave a review, which then gets posted to your profile.

Are Google Local Service Ads Expensive?

As with all things Google, you can spend as much or as little as you want, and you can change your budget at any time. For Local Services, you’ll have two decisions to make:

Your maximum monthly budget.
Your maximum per-lead budget. You can set this cap manually or you can let Google optimize it based on your monthly budget.

Either way, remember you’re paying for leads, not clicks, so Local Services ads might feel expensive compared to your regular PPC spend. Depending on your services and market, you can expect to pay something like $20-$35 USD per lead. Use Google’s budget tool to get a more accurate estimate for your area.

Also, keep in mind these aren’t just random searches—these are high-quality leads. They’re near you, they’re looking for exactly what you offer and they need it urgently enough they’re willing to call, message or book immediately.

Google attempts to distribute your ad budget evenly across the week so you don’t get inundated with leads (although what a great problem to have) and so you don’t use up your budget too quickly.

What’s the Deal With Google Guaranteed for Plumbing and HVAC?

When you advertise with Local Services, you automatically become a Google Guaranteed business. That means if a customer books through your Local Services ad and they’re not happy with your work, Google may reimburse them. Conditions apply to this, but having the Guaranteed badge ups your credibility with customers, because they know Google has vetted you and backs your expertise.

Currently, the only way to receive the Google Guaranteed badge is to sign up for Local Services ads or to advertise through a partner affiliate network like Thumbtack. In mid-2020 there were rumblings about companies being able to upgrade their Google My Business profiles with a Guaranteed badge for a monthly fee, but it’s not clear if that’s actually going to happen.

Google Local Services v. Google Ad

Local Services ads are completely separate from Google Ads, and Local Services ads aren’t meant to replace Google Ads. Check out our article about LSA vs PPC.

If you’re already running Google Ads and you’re trying to figure out why you’d add Local Services, think about this:

Local Services ads show first on the SERP.
Local Services calls are recorded, so you can easily evaluate your team’s level of customer service.
It costs nothing to participate in Local Services. You only pay for leads.
Local Services has a simple management platform both online and through the app.
You don’t have to deal with keywords to run Local Services ads. No more endless ad testing!
You can pause your Local Services ads at any time. If you do, your badge will disappear and you’ll drop below other paid ads. But depending on your market, you may still generate leads for free.
As a Google Guaranteed business, you may also be listed when customers search for you via Google Assistant—at no cost to you.

In most cases, it’s wise to run both types of ads, with a budget nudge toward Local Services. Our team would be happy to talk you through this so you can make smart, confident decisions about how to best invest your ad dollars.

How to Make the Most of Your Local Services Ads

As with all things Google, your placement compared to other advertisers depends on a number of factors. One is most certainly your proximity to people searching for services, which you obviously can’t control.

So focus on the things you can control:

Take advantage of opportunities to showcase important aspects of your business through your Local Services business bio. Using up all five highlight spots is a great way to do this.
Keep your Google My Business profile complete and up to date.
Consider expanding your business hours. Google may not display your ad to someone searching for services while you’re closed. You can also intentionally set days and times to display your ad and can pause at any time.
Respond to leads quickly. If you’re slow to respond, your ad rank may be affected.
Do good work and have it reflected in your reviews so you don’t get a bad rep with Google.
Be sure your NAP (name, address, phone number) is listed exactly the same way across all directory sites.
Consider raising your budget or maximum bid per lead.

How to Invest in Google Ads for HVAC and Plumbing

This can be tricky. That’s why our digital team developed a proven process that’s helped dozens of HVAC and plumbing contractors 8x their revenue. Let’s get you more leads so you can make more money. Schedule your consultation today.