Google Local Services Ads (LSA)
Google's pay-per-lead advertising program where you only pay when a potential customer calls or messages you directly through your ad listing, not for clicks or views.
Full Definition
Unlike Google Ads where you pay for clicks, LSA charges you only when someone actually contacts you through the ad. Google pre-screens businesses and displays them with a 'Google Guaranteed' badge, showing your reviews, hours, and phone number prominently at the top of search results for local service searches.
For Contractors
Why It Matters
LSA typically delivers higher quality leads at lower cost than traditional Google Ads because people who call are ready to hire, not just browsing. Most concrete contractors see LSA leads close at 35-40% vs 25% for other lead sources, and you're not wasting money on tire-kickers who just click around.
Real-World Example
A concrete contractor in Denver running LSA pays $38 per lead for driveway work. He gets 15 leads per month, spends $570, and closes 6 jobs at $8,000 each ($48,000 revenue). His total cost per job is $95. The same contractor was spending $1,200/month on Google Ads, getting 28 leads at $43 each, but only closing 7 jobs because the lead quality was lower.
Common Mistakes
- -Setting your weekly budget too low - Google shows your ads less frequently if you constantly hit budget limits, reducing your visibility
- -Not responding to LSA leads within 5 minutes - Google tracks response time and prioritizes contractors who respond fastest
- -Accepting leads outside your service area - you still pay for them even if you can't serve the customer
- -Not disputing invalid leads - Google will refund bogus leads but you have to request it within 30 days
What to Do
Log into your Google LSA dashboard right now and check your average response time to leads from the past week. If it's over 3 minutes, set up instant notifications on your phone and assign backup responders. Contractors who respond within 2 minutes are 3x more likely to book the job.
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