Google Local Services Ads for Trade Businesses: How Leads, Charges and Verification Work

What Local Services Ads are

Google’s help center describes Local Services Ads as a way to advertise on Google and receive leads directly from potential customers. The ads appear prominently in Google Search results when people search for the services you offer in the areas you choose. Customers can call you, send a message or, in some cases, request a booking through the ad.

Google also says that if you regularly fail to answer calls or respond to messages, your ad ranking may be affected, so the program rewards businesses that pick up the phone.

How you are charged

• Pay per valid lead. You are charged for each valid lead. Google says lead prices may vary depending on your location, the job type, the type of lead and your bidding mode.
• Budget. You set an average weekly budget. You can spend more than the average in a given week, but never more than your monthly max, which is your average weekly budget multiplied by the average number of weeks in a month. After you reach the monthly max, your ad stops showing for the rest of the month unless you change the budget.
• Message leads are typically priced lower than phone leads, though Google says that is not always the case.
• Billing is managed through Google Ads. Google says any suspension of your Google Ads account also suspends your Local Services Ads.

What counts as a valid lead

According to Google’s “How leads work” page, a valid lead can be any of these:

• You answer a call, or call the customer back and speak with them.
• You miss a call during your business hours and the customer stays on the line for more than 20 seconds.
• You receive a text message, email or voicemail from the customer.
• You receive a booking request (United States and Canada only).

Some details that matter for a busy crew:

• The 20-second rule applies only to missed calls. If someone answers, the call is judged on the conversation instead of ring time.
• Phone menus. If your phone system asks callers to press a key and they hang up without pressing one, you aren’t charged. The 20-second timer starts after the first key press.
• Voicemail. A call that reaches voicemail or an automated greeting during business hours is treated as connected and is charged if the caller stays on the line for more than 20 seconds, whether or not they leave a message.
• Business hours are the hours set in your Google Business Profile. If your ad schedule is different, unanswered calls are charged only when they happen during both your active ad schedule and your business hours. Keep your Business Profile hours accurate.
• Repeat contacts. Once a lead is charged, follow-up calls or messages from the same phone number or email aren’t charged again if there is interaction within 15 days.

Lead quality and credits

Google says leads judged invalid or low quality when the customer first makes contact are not charged. Charged leads are reassessed over a 30-day period, and a credit is applied automatically if a lead is found to be poor quality, a duplicate or invalid. Each lead’s status on the Leads page shows as “Charged,” “Not charged,” “In review” or “Credited.” You can also give feedback on individual leads through a survey. Google notes some exceptions, such as no automatic lead credits for accounts in European Economic Area countries.

If you receive leads you don’t want, Google suggests refining your service areas, categories and service types in campaign settings.

The Google Verified badge

Google says the Google Verified badge signals that a business has passed Google’s screening process, and provider profiles show which verification checks were completed. The badge is not available for businesses in the auto, beauty and dining categories. Google also offers “pre-badge” ads, which can show after you pass preliminary checks while you finish the remaining onboarding checks.

Screening and verification in the U.S.

Requirements depend on your business category and location. Google’s help pages describe these checks:

• Timing. On average, screening and verification take 3–4 weeks after you submit documents (U.S. requirements page).
• Google Business Profile. You need a public, verified Business Profile linked to your Local Services account, and the person completing the business checks must be an owner or manager of that profile.
• Background checks (select categories). These can cover the business, the owners and field workers who provide services in customers’ homes or workplaces. Google says they involve identity and criminal history checks, do not involve a credit check, and businesses aren’t charged for them. Office and clerical staff who don’t serve customers directly don’t need them.
• Licenses. Google says it checks applicable state-level licenses against state databases to the extent possible and shows verified licenses on your profile. Businesses must also confirm they hold applicable county and city licenses and that all service professionals are appropriately licensed.
• Insurance (select categories). In the U.S. and Canada, Google says the best document is a valid, signed Certificate of Insurance in the same business name you used to sign up.
• Business registration and identity. Google uses Dun & Bradstreet data and, if needed, documents such as a Secretary of State registration or IRS EIN letter, plus an ID check of the business representative.

Before you turn it on

• Make sure someone can answer the phone during the hours on your Business Profile, or adjust the hours.
• Set a weekly budget you would be comfortable spending every week of the month.
• Choose only the service types and areas you actually want work in.
• Track which leads become paid jobs, so you can judge whether the cost per job makes sense for your business.
• Have your license and insurance documents ready, in the exact legal name of the business.