Google Local Services Ads in Canada: How They Work and Are They Worth It?

If you run a service business in Canada, you have probably seen Local Services Ads without knowing their name. They are the listings at the very top of some Google searches, with a business name, star rating, a badge and a call button. Searches like “plumber near me” or “electrician Surrey” often show them.

This guide explains how Local Services Ads in Canada work, what changed with the new Google Verified badge, how you pay, how they differ from regular Google Ads and how to tell if they are worth it for your business.

What are Google Local Services Ads?

Local Services Ads, often shortened to LSAs, are a separate ad type from regular Google search ads. Instead of writing ad text and bidding on keywords, you create a profile with your business details, service area, job types and hours. Google then shows your profile to people searching for those services in your area.

The biggest difference is how you pay. With regular Google Ads, you pay when someone clicks your ad, even if they never call. With Local Services Ads, you pay when a potential customer contacts you through the ad, usually by phone call or message. Google’s help centre explains that you pay for valid leads related to your business.

The Google Verified badge in Canada

For years, Local Services Ads showed different badges, such as Google Guaranteed for home services and Google Screened for professional services. On October 20, 2025, Google replaced all of these with one Google Verified badge. The money back guarantee that came with the old Google Guaranteed badge was also discontinued.

To show the badge, your business has to pass Google’s verification checks. Depending on your category and location, these can include business registration, licences, insurance and background checks. Customers can tap the badge to see which checks your business passed.

If you still mention “Google Guaranteed” on your website, vehicles or quotes, it is a good idea to update that wording so it matches what customers see today.

How Local Services Ads in Canada charge for leads

You set a weekly budget and Google charges you per lead. The price of a lead depends on your trade, your area and how many other businesses are competing for the same customers. Google shows budget and lead estimates when you set up your profile, so you can see what to expect before you spend anything.

A few points are worth knowing before you start:

• Not every lead turns into a job. You pay for the contact, so you need to answer quickly and qualify calls well.
• Lead credits are now mostly automatic. In Canada and the US, Google uses automated lead credits and reviews charged leads over time. According to Google’s help page on automated lead credits, leads for job types or areas you do not serve are no longer credited, so your profile settings need to be accurate.
• Response time affects ranking. Google notes that if you regularly miss calls or messages, your ad ranking may drop.

Local Services Ads vs regular Google Ads

Both can work well, and many businesses use them together. Here is how they compare:

• Payment: Local Services Ads charge per lead. Regular Google Ads charge per click.
• Placement: Local Services Ads usually appear above regular search ads for the service categories they cover.
• Control: Regular Google Ads give you much more control over keywords, ad text, landing pages and targeting. Local Services Ads give you less control but are simpler to run.
• Trust: Local Services Ads show your Google reviews and the Google Verified badge right in the ad.
• Categories: Local Services Ads are only available for certain service categories. Regular Google Ads work for almost any business.

If you want to understand regular search campaigns better, our Google Ads management page explains how we build and track them.

Are Local Services Ads worth it for your business?

Local Services Ads tend to work well when most of these are true for your business:

• You offer a service that customers search for when they need it now, like plumbing, HVAC, electrical or locksmith work.
• Someone can answer the phone during your listed hours.
• You already have a steady flow of Google reviews.
• Your average job value is high enough that paying for each lead still leaves a healthy profit.

They may be a weaker fit if you cannot answer calls quickly, if your category is not available, or if your reviews are thin. In that case, it often makes sense to start with your Google Business Profile and review system first, then add Local Services Ads once those are in good shape.

How to get started with Local Services Ads in Canada

1. Check eligibility. Go to Google’s Local Services Ads sign up page and enter your business category and location to see if it is available.
2. Prepare your documents. Have your business registration, any trade licences and proof of insurance ready, since Google may ask for them.
3. Build an accurate profile. Choose only the job types and service areas you actually want, since off target leads are no longer credited.
4. Set a test budget. Start with a weekly budget you are comfortable with and track every lead for at least a month.
5. Answer fast and ask for reviews. Quick replies and fresh reviews help your profile show more often.
6. Track jobs, not just leads. Note which leads become paying jobs, so you can work out your real cost per job.

Frequently asked questions

Are Google Local Services Ads available in BC?

Yes, Local Services Ads run in Canada, including BC, for a set list of service categories. Availability depends on your category and location, so check Google’s eligibility tool for your exact service.

Is Google Guaranteed still available in Canada?

No. Google replaced the Google Guaranteed, Google Screened and License Verified badges with a single Google Verified badge on October 20, 2025. The money back guarantee linked to Google Guaranteed was discontinued at the same time.

How much do Local Services Ads cost?

You pay per lead, and the price varies by trade, area and competition. Google shows budget and lead estimates during setup, and you control your weekly budget. Any figure you see online should be treated as a rough guide only.

Can I run Local Services Ads and Google Ads at the same time?

Yes. Many service businesses use both. Local Services Ads capture people ready to call, while regular Google Ads let you target specific services, areas and landing pages in more detail.

Quick Leadz Marketing is a digital marketing agency based in Surrey, BC. We help local businesses in Surrey, Langley, Abbotsford, Chilliwack, Maple Ridge, Delta and across the Lower Mainland, and clients online across Canada, get more calls through paid search, Google Ads, SEO and marketing for trades.

Google features and policies change often. This article reflects Google’s help centre as of November 2026. Check Google’s official pages for the latest details.