Local Service Ads (LSA)
Definition
Local Service Ads are Google's pay-per-lead advertising format for local service businesses, where the ad shows at the top of search results and charges only when a qualified customer contacts the business.
What Local Service Ads (LSA) Means for Your Business
What it means
Local Service Ads sit above the paid search results and the organic listings. They display the business name, phone, hours, review score, and a Google Guaranteed badge. Customers click to call or message, and the business pays per lead, not per click.
Why it matters
LSAs deliver some of the highest-intent traffic available. Customers who click an LSA have already decided to hire someone, they are just picking who. Top positioning plus pay-per-lead pricing makes LSAs a foundational channel for most service businesses.
How contractors use it
Shops apply for Google Guaranteed status, verify their license and insurance, set a weekly budget, and manage the incoming leads inside the LSA dashboard. Dispute rejected leads to keep CPA in control.
Real-World Example
An electrical contractor spent $4,200 per month on LSAs and received 68 leads at $62 per lead. With a 55% booking rate and $480 average ticket, that was $17,960 in monthly revenue or a 4.3x return.
Related Terms
Marketing Cost per Lead
Marketing cost per lead is the total marketing spend divided by the number of qualified inquiries it generated over the same period.
Cost per Acquisition (CPA)
Cost per acquisition, or CPA, is the total marketing spend divided by the number of customers actually won, measuring what it costs to acquire one paying customer.
Google Business Profile
A Google Business Profile is the free listing a business creates on Google that shows up in map results, local searches, and Google Maps.
Reputation Management
Reputation management is the ongoing practice of monitoring, earning, and responding to online reviews to maintain a positive public image for the business.
Review Velocity
Review velocity is the rate at which a business earns new online reviews, typically measured as reviews per week or per month.
Put This Into Practice with Free Software
Kaldr Tech handles local service ads (lsa) and everything else you need to run your shop. $0/month, 3.5% + 30¢ per transaction.