Local Service Ads Price Per Lead, Not Per Click
Local Service Ads work differently from standard Google Ads. Instead of paying for a click that might never convert, advertisers pay only when a customer contacts them directly through a call, message or booking generated by the ad. This pay-per-lead model shifts the risk away from the advertiser compared to the pay-per-click model used across the rest of Google Ads.
Average Cost Per Lead by Trade
| Trade | Typical cost per lead |
|---|---|
| Plumbing | $25 to $45 |
| Electrical | $30 to $55 |
| HVAC | $40 to $70 |
| Locksmith | $15 to $30 |
| Legal / attorney | $60 to $120 |
Cost per lead scales with the value of the job being advertised. A locksmith call-out is a relatively low-ticket job, which keeps lead cost down, while a legal consultation can turn into a case worth thousands of dollars, which pushes advertisers to pay far more per lead.
Local Service Ads vs Standard Google Ads
Local Service Ads tend to produce a lower cost per paying customer than standard Google Ads Search campaigns for eligible trades, largely because the pay-per-lead structure filters out clicks that never convert. Standard Google Ads still has a place for businesses outside the eligible trade list, for broader brand visibility or for retargeting people who already visited the website. Many service businesses run both at once, using Local Service Ads for its Google Guaranteed badge and lower-risk pricing while keeping Search ads active for keyword coverage Local Service Ads does not reach.
What the Google Guaranteed Badge Adds
Businesses that pass Google’s background check and licensing verification earn a Google Guaranteed badge on their Local Service Ads listing. This badge signals a level of trust that a standard search ad cannot offer. It is part of why conversion rates on Local Service Ads tend to run higher than on comparable search campaigns for the same trade.
Frequently Asked Questions
How much do Local Service Ads cost?
Cost depends on the trade and typically ranges from $15 to $30 per lead for lower-ticket services like locksmith work up to $60 to $120 per lead for higher-value services like legal consultations.
Do you pay for every click on a Local Service Ad?
No. Local Service Ads charge per qualified lead, meaning an actual call, message or booking, not per click. This is the main structural difference from standard Google Ads.
Is Local Service Ads cheaper than regular Google Ads?
For eligible trades it often produces a lower cost per paying customer, since the pay-per-lead model filters out clicks that never turn into contact. The per-lead price itself can still be substantial for high-value trades like legal services.
What is the Google Guaranteed badge?
It is a trust badge awarded to businesses that pass Google’s background check and licensing verification process, displayed on their Local Service Ads listing to signal credibility to potential customers.
Should I run Local Service Ads and Google Ads together?
Many service businesses do. Local Service Ads covers lower-risk, trust-driven leads for eligible trades, while standard Google Ads covers keyword territory and retargeting that Local Service Ads does not reach.