How to Set Up Local Service Ads for Contractors

Why This Matters

Local Service Ads convert inbound search traffic at 3 to 5 times the rate of traditional Google search ads because they appear above all other results, include the Google Guaranteed badge, and list real reviews right on the ad. For an HVAC, plumbing, or electrical contractor in a major metro, LSA typically delivers leads at $35 to $85 per phone call. At a 60 percent close rate and $687 average ticket, the effective customer acquisition cost is $58 to $142 per booked job, which against a $687 ticket with 50 percent gross margin nets $201 to $285 per customer before any lifetime value. That is a 2x to 5x return in the first visit, before counting any repeat business or maintenance agreement upsells. Shops that properly manage LSA run it as their biggest marketing channel. Shops that set it up wrong quit after 90 days and blame Google. The difference is entirely in the setup and daily review discipline.

The Steps

1. 1

   Step 1: Confirm eligibility for your trade and market

   Go to ads.google.com/local-services-ads and check whether LSA is available for your trade and service area. As of 2026, LSA covers HVAC, plumbing, electrical, appliance repair, garage door, roofing, and about 30 other home service categories in all 50 states. Some rural markets have limited coverage. Enter your primary ZIP and trade to see if you qualify. If your trade is not listed, stick with traditional Google Ads for now. If it is, proceed. This first check takes 30 seconds and saves you from starting a process you cannot finish.

   Pro tip: Check eligibility for each trade you offer separately. HVAC and plumbing have different requirements.

2. 2

   Step 2: Upload your license, insurance, and background checks

   Google requires proof of state trade license, general liability insurance (usually $300,000 minimum), workers comp if applicable, and background checks on the business owner plus any field technicians. Upload clear PDF scans of each document. Google partners with Evident or Checkr for background checks and covers the cost for the Google Guaranteed badge. The owner completes a personal information form (name, DOB, SSN last 4) and the background check runs in 3 to 7 business days. Do not skimp on document quality. Blurry scans are the number one reason applications get rejected and delayed 2 extra weeks.

   Pro tip: Name files clearly: owner-license.pdf, general-liability.pdf, workers-comp.pdf.

3. 3

   Step 3: Set your service area and job types

   Define the ZIP codes you serve and check every job type you actually do. For a plumbing shop this might be drain cleaning, faucet repair, toilet repair, water heater install, leak detection, and sewer repair. Do not check job types you do not want, because Google will send you leads for all checked categories. If you hate toilet repair calls because they are low margin, uncheck it. If you want to focus on high margin water heater installs, check only that. The ad budget and lead quality both improve dramatically when you match job types to your actual business goals.

   Pro tip: Recheck your job type selections every 90 days as your service mix changes.

4. 4

   Step 4: Set your weekly budget and maximum bid

   Google lets you set a weekly budget. Start with a conservative $400 to $600 per week for a 3 tech shop, not the $2,000 Google auto suggests. Monitor the lead flow for 2 weeks and increase only after you verify close rate and average ticket are profitable. Bidding is maximum pay per lead, typically $35 to $85 in most markets. Start at the lower end and adjust up if you are not getting enough leads. Most shops overpay in the first 30 days because they set the max bid at Google's default, then wonder why their customer acquisition cost is brutal. Start low, measure, adjust.

   Pro tip: Never set the weekly budget higher than 2 weeks of cash flow can absorb if close rate is zero.

5. 5

   Step 5: Connect a dedicated tracking phone number

   Use a dedicated phone number for LSA calls, not your main business line. Google provides a tracking number automatically or you can use Kaldr Tech's built in number. A dedicated number lets you attribute every call accurately, measure conversion rate by lead, and dispute bad leads (robocalls, wrong trade, outside service area) with Google for refund. Shops that use their main line lose attribution and cannot prove which calls came from LSA, which makes it impossible to optimize. The tracking number also records calls so you can coach your CSR on missed conversions.

   Pro tip: Enable call recording and review 5 calls a week to coach your CSR.

6. 6

   Step 6: Dispute bad leads immediately

   Not every LSA lead is billable. Google refunds leads that are wrong trade, outside service area, spam, robocalls, or duplicates of recent leads. You have 30 days to dispute a charge, but dispute within 48 hours for the highest approval rate. Open the LSA dashboard, click Leads, find the questionable one, and hit Dispute Lead with a brief reason. About 40 percent of disputed leads get refunded, which on a typical shop saves $200 to $600 per month in bad charges. Most contractors never dispute anything because they do not know it is an option.

   Pro tip: Set a daily 5 minute calendar reminder to review yesterday's leads and dispute any that qualify.

7. 7

   Step 7: Request reviews from LSA customers specifically

   Every booked job that came from LSA should result in a Google review request because LSA ranking is driven primarily by review count and recency. Text the customer 24 hours after job completion with a direct link to your Google review form. Say 'Thank you for choosing Acme. If we earned a 5 star today, it helps us keep showing at the top of Google for neighbors like you. Here is the link: [link].' This specific ask converts at 44 percent when sent within 24 hours. A steady flow of new reviews lifts your LSA ad rank, which lowers your average cost per lead over time.

   Pro tip: Never buy reviews. Google detects review fraud and will suspend your LSA account permanently.