Local Service Ads Guide for 2025

If you’re looking to get local leads without wasting money on clicks, Local Service Ads are the way to go. Unlike regular Google Ads, you only pay for actual leads, such as phone calls or messages. At Roareye, we help service businesses utilize Local Service Ads to generate consistent, good-quality leads. Whether you’re targeting the US or setting up Google Local Service Ads Canada, this guide walks you through how to do it right.
What Are Google Local Service Ads
Google Local Service Ads (LSAs) appear at the top of search results when people in your area search for services you offer. These ads show your business name, rating, service area, and a phone icon; no website needed.
You pay per lead, not per click. That means you only pay when someone calls, messages, or books you through the ad.
To qualify, you need to pass Google’s checks. This usually includes a background check, license verification, and uploading your business insurance. Once approved, you earn a “Google Guaranteed” badge, soon changing to Google Verified.
How to Set Up Local Service Ads
Getting started is easier than it looks. Here’s how to set up local service ads:
1. Prepare Your Google Business Profile
Before you create ads, make sure your Google Business Profile is public and verified. Google now requires this for many LSAs to run.
2. Sign Up for LSAs
Go to the Google Local Services Ads platform. Choose your industry and location. Then, add:
- Your service areas
- Job types
- Business hours
- Headshots (for some verticals like legal or real estate)
3. Upload the Right Documents
You’ll need to submit:
- Your business license (if required in your region)
- Proof of liability insurance
- Background check info (for some industries)
4. Set Your Budget
Choose how much you’re willing to spend per week. Google lets you pick a “Maximize Leads” or “Set Max Per Lead” bid strategy.
5. Go Live and Start Collecting Reviews
Once approved, your ad will show up. Start asking happy clients to leave reviews directly through your ad dashboard.
Google Local Service Ads Canada

If you’re based in Canada, you’re in luck. Google Local Service Ads Canada is available for home services, legal, and some healthcare providers.
Here’s what to know:
- LSAs live in major provinces like Ontario, British Columbia, Alberta, and Quebec
- Google may request licenses specific to your province
- You can serve customers in English or French
- Google uses your location and service area to decide when your ad shows
Bilingual reviews and proper address formatting go a long way toward winning leads in Canadian cities.
Bidding and Ranking: How to Stay on Top
Ranking in Local Service Ads isn’t just about your budget. Google also looks at:
- How quickly you respond to leads
- Your star rating and number of reviews
- How complete and up-to-date your profile is
- Whether you’ve enabled messaging or booking
Tip: Keep your response time under 5 minutes. Google tracks how often you answer and how fast.
When choosing a bid strategy:
- Use Maximize Leads if you want volume
- Use Set Max Per Lead if you have a fixed budget
- Check your average cost per lead (CPL) weekly
Tracking Results and ROI
With LSAs, tracking is simple. Use your dashboard to:
- Listen to recorded calls (US only)
- Check how many leads were converted
- Tag leads by job type or city
- Measure cost per lead and close rate
Sample ROI Calculation
Let’s say:
- You close 1 out of 3 leads
- Your average job is $350
- Your gross margin is 60%
- You pay $40 per lead
That gives you $73.50 in gross profit per lead, a strong return.
Conclusion: Start Running Local Service Ads with Roareye
Local Service Ads are one of the easiest ways to get inbound leads without building complex landing pages or managing keywords. You get results faster and only pay when people contact you.
At Roareye, we help you set up, run, and optimize your LSAs, whether you’re in the US or managing Google Local Service Ads Canada. Need help getting started? Let’s talk.
FAQs
1. What are Google Local Service Ads?
They’re ads that appear at the top of Google and charge per valid lead (not click).
2. How do I set up local service ads?
Verify your Google Business Profile, submit the required documents, select your service area and job types, then set a budget.
3. Are LSAs available in Canada?
Yes, LSAs live in multiple Canadian provinces for selected industries.
4. What’s the difference between bid types?
Maximize Leads gives Google control to get more leads. Set Max per Lead lets you cap the price for each lead.
5. Can I dispute low-quality leads?
No need. Google now auto-reviews leads and credits invalid ones within 30 days.