Direct Answer (Quick Summary)
LSA ads charge contractors strictly per valid lead—such as an answered phone call, direct message, or booking request—not per click. The cost per lead ranges from $25 to $180 depending on the trade, city density, and local competition. Setup requires verifying state business licenses, general liability insurance, completing background checks, connecting a Google Business Profile with reviews, and setting a daily budget.
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15-Point LSA ads setup checklist for agencies
Follow this exact chronological checklist when onboarding contractor clients to Google Local Service Ads:
- 1. Confirm business entity registration and trade name with Secretary of State.
- 2. Check Google category eligibility for the client's operational ZIP codes.
- 3. Create or access the client's unified Google Ads account.
- 4. Input official business address and verify business hours match telephone coverage.
- 5. Define service perimeter (by radius or specific county/postal codes).
- 6. Select exact service offerings and uncheck unprofitable job categories.
- 7. Upload valid state and municipal contractor licenses.
- 8. Upload current Certificate of Insurance (COI) listing required general liability minimums.
- 9. Submit business owners and customer-facing technicians for Evident background screening.
- 10. Link existing Google Business Profile to import verified customer reviews.
- 11. Verify minimum review threshold (at least 5 reviews with 4.0+ rating).
- 12. Configure daily budget and Target CPA bidding strategy.
- 13. Add payment method and establish billing thresholds.
- 14. Enable instant SMS and email lead delivery notifications.
- 15. Test call tracking number and confirm call recording disclosure.
How to pause or adjust LSA ads
When client crews hit full capacity or during extreme weather events, pausing campaigns in Google Ads is straightforward: Navigate to the LSA campaign, toggle status to 'Paused', or adjust business hours to 'Closed' for temporary holds. Never cancel the account entirely, as re-verification can delay reactivation by weeks.
Frequently Asked Questions
How much do LSA ads cost?
You pay per valid lead, and the price varies by trade, city and competition. Google shows an estimated cost per lead in the account before you set the budget.
How are LSA ads charged?
Google charges for leads such as calls, messages and bookings related to your services, not for clicks or impressions. Some invalid leads can be credited.
How do I set up LSA ads?
Check eligibility, create the campaign in Google Ads, add services and areas, pass licence, insurance and background checks where required, link the Google Business Profile and set a daily budget.
What is the difference between LSA ads and PPC?
LSA charges per lead and shows a trust badge at the top of results; PPC charges per click and is controlled by keywords. Many contractors run both.
How do I pause LSA ads?
Pause the campaign or adjust availability in the Google Ads account; after the migration the old LSA dashboard no longer exists.
Vaishali Kapoor
Founder, Contractor Leads
Vaishali leads product and growth at Contractor Leads, helping marketing agencies prospect, score, and close high-ticket home-service contractors.
