Also called LSA, Google Guaranteed.
Local Services Ads are Google's pay-per-lead placement above the search results, carrying a Google Guaranteed badge. Businesses pass a license and insurance check to run them.
The badge does trust work no ad copy can. In exchange you give up keyword control, and your ranking depends on reviews, responsiveness, and proximity.
The badge is the product. For a homeowner comparing strangers who will be inside their house for a week, a Google-verified check mark does something no headline can, which is why LSA tends to convert better than anything else on the results page.
What you give up is targeting. You do not choose keywords; Google matches on your categories and service area, which means your primary category and your service area settings are effectively your ad targeting. Your rank is influenced by review volume and score, how fast you answer, and how close you are to the searcher, so your Google Business Profile and your phone habits are part of your ad performance whether you planned it that way or not.
Disputing invalid charges is part of running it properly and the part most contractors skip. Leads outside your service area, outside your trade, or plainly not a real inquiry can be contested. Contractors who never dispute quietly overpay every month, and nobody sends a reminder.
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