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In today’s digital landscape, pay-per-click (PPC) advertising is essential for local businesses aiming to attract more customers and enhance their online presence. Among the various PPC options available, Local Services Ads (LSAs) stand out for their ability to connect local businesses with nearby customers actively seeking their services. If you are a local service-oriented business, reaching local customers effectively is crucial. Local Service Ads (LSAs) have become a powerful tool to improve visibility and trustworthiness for service-oriented businesses. In this blog, we explore what LSAs are, their benefits, and the Google Guarantee badge that comes with them
What are Local Services Ads (LSAs)?
Local Services Ads (LSAs) are a form of PPC advertising that helps local businesses connect with customers in their area. These ads appear at the top of Google search results when users search for specific services, such as Carpet Cleaning, Plumbing, electrical work, or home cleaning . LSAs operate on a pay-per-lead model, meaning businesses only pay when a potential customer contacts them directly through the ad. This model is highly cost-effective as it ensures that advertising budgets are spent on genuine leads.
Benefits of Local Service Ads
Top Placement: LSAs appear above traditional PPC ads and organic search results, ensuring maximum visibility.
Pay-Per-Lead: You pay only for genuine leads, such as phone calls or messages received through the ad.
Verified Reviews: LSAs display customer reviews from your Google Business Profile, influencing potential customers’ decisions.
Google Guarantee Badge (Green Tick ✅ ): Businesses that meet Google’s strict verification process earn the Google Guarantee badge, which is prominently displayed on their LSAs.
When you sign up for Local Services Ads and set up the right way, you can become a Google Guaranteed business.
Understanding Google Guarantee
The Google Guarantee badge is introduced by Google to enhance trust between local businesses and consumers. When a business earns the Google Guarantee badge, it means that Google has thoroughly verified the business. This verification process includes background checks, license verifications, and proof of insurance, ensuring that the business meets Google’s high standards for reliability and service quality.
The badge, displayed prominently in your ads, serves as a mark of trust and quality. For consumers, it means peace of mind knowing that Google has endorsed the business, and for businesses, it provides a significant competitive advantage in attracting new customers.
This is what a business looks like when running Local Service Ads. Note, that advertising with Local Service Ads means you’ve already earned the Google Guarantee Badge.

Benefits of Google Guarantee
Increased Trust and Credibility: The Google Guarantee badge is a powerful trust signal. When potential customers see this badge, they know that Google has approved your business. This significantly increases your credibility and makes consumers more likely to choose your services over those of competitors.
Better Visibility in Search Results: Google Guarantee ads often appear at the very top of search results, even above traditional PPC ads and organic listings. This prime placement means more visibility and, consequently, more clicks and leads. Imagine your business being front and center in a crowded marketplace. This top placement is like having the best storefront on the busiest street, ensuring more people see and consider your services.
Money-Back Guarantee for Customers: One of the standout features of Google Guarantee is the money-back guarantee offered to customers. If a customer is unsatisfied with the quality of service, Google may refund the amount paid for the job, up to a certain limit.
Enhanced Customer Trust Through Verified Reviews: LSAs prominently display reviews from your Google Business Profile. Verified reviews play a crucial role in attracting new customers, as they provide social proof of your business’s reliability and quality. Positive reviews are like word-of-mouth recommendations in the digital age. When potential customers see that others have had great experiences with your business, they are more likely to trust and choose your services.
Simplified Lead Management: The LSA dashboard allows you to track and manage leads easily, including listening to call recordings and responding to messages. This centralized system helps you stay organized and ensures you can follow up promptly with potential customers.
Disputing Invalid leads: If your ads are generating invalid leads or wrong phone calls that are not useful, you can dispute these charges. Google offers a straightforward process to dispute and get refunds for such leads. If you are charged for these invalid leads, Google will refund the cost. However, please note that this feature is being rolled out gradually. At the time of publishing this blog post, Google can only issue refunds for leads that come through messages, and disputes can only be escalated by contacting their support team.
How LSAs are Different From Google Ads?
LSAs and traditional Google Ads serve distinct purposes in digital marketing. Local Service Ads are specifically tailored for local service providers. These ads appear prominently at the top of search engine results pages (SERPs) and include a Google Guarantee badge, assuring customers of verified service quality. Unlike traditional Google Ads where businesses pay per click, LSAs operate on a pay-per-lead basis. This model enhances cost-effectiveness and instils greater trust among potential customers. Moreover, Local service ads allow businesses to target specific geographic areas precisely, ensuring their ads reach the most relevant local audience. Overall, LSAs offer a specialized platform to boost visibility, credibility, and customer engagement for local service providers, distinguishing them significantly from traditional Google Ads.
Eligibility for Local Service Ads
Google has expanded its Local Service Ads to include a wide range of professions in the UK, from legal services to home improvement. However, the list of eligible businesses is subject to change, and new categories may be added over time.
To find out if your business is eligible for Local Service Ads, we recommend contacting us.
An essential component of Local Service Ads is the Google Guarantee badge. This isn’t just a fancy add-on—it’s a requirement for signing up. It’s important to note that a Google Guarantee badge is required for making local service ads live. To get a Google Guarantee, your business needs to be on the eligible list, and you must be a registered company. If you are self-employed, you need to have a VAT Tax ID.
How Can Madhouse Help You?
Navigating the setup and verification process for these ads can be complex, involving background checks and verification by Google. At Madhouse, we specialize in setting up, maintaining, and managing these ads to boost visibility, enhance performance, and drive leads for local businesses effectively. Moreover, it’s not just about spending a budget to show your ads on top of Google. Google’s complex ad rank system determines ad placement, considering factors beyond budget alone. Let us handle these while you focus on growing your business, ensuring your ads pass verification and perform optimally within Google’s ranking system.