What Changed With Google Local Services Ads?
Updated: Sep 9
Updated September 2026
If you run a local service business, it's worth being aware that there have recently been some pretty significant changes to Google Local Services Ads. The biggest change you should know about is that Google is moving Local Services Ads into the main Google Ads interface, and automatically migrating them to a specialist type of Performance Max campaign with pay-per-lead goals.
There are also two changes that have already happened: the old manual lead dispute system was replaced in 2024, and Google Guaranteed became Google Verified in October 2025.
Want to learn more about what has changed with Google's local services ads? Here’s what your business needs to know.
September 2026 Update: What We’re Seeing Inside Migrated Local Services Accounts
When we originally wrote this article, Google had announced that Local Services Ads were moving into Google Ads and becoming Performance Max with pay-per-lead goals.
We’ve now worked inside a fully migrated electrical contractor account, so we can add something the original announcement couldn't: what the migration looks like once you're using the new system.
Using The New Google Ads
The old LSA dashboard really does become Google Ads. For day-to-day lead management, the path you'll want to take is Google Ads → Goals → Conversions → Leads.
Any new leads you receive will appear as Active, and you can now move them through Booked and Completed as the customer progresses from enquiry to scheduled work to completed job. This is one of the most important new habits to get right because Google uses these outcomes to help optimise your campaign performance.
What to Know About Lead Ratings
Your lead ratings still have meaning, but it's worth noting that they aren't a replacement for the old manual dispute process. If a genuine customer gets an estimate and decides not to hire you, they're a lost sale, not necessarily a bad lead. But you can provide accurate feedback for spam, solicitation, wrong numbers, duplicates, and genuinely irrelevant enquiries.
Similarly, repeated leads for services or areas you don't cover are now more of a targeting problem than a reason to expect a credit.
Performance Max Campaigns
Don't treat the migrated campaign like a normal Performance Max campaign. Although Google calls it Performance Max with pay-per-lead goals, it's still a specialised, keywordless local-services campaign.
The new Google Ads interface can also present you with standard recommendations and settings that don't necessarily belong in your PPL strategy. Remember, just because Google shows you a button doesn't mean you should use it. We don't recommend that you blindly change your bidding, Target CPA, budgets, conversion goals, or targeting simply to improve your Optimization Score.
For these campaigns, the numbers you'll need to pay attention to are Spend → Charged Leads → Cost Per Lead → Booked Jobs → Completed Jobs → Cost Per Customer / Revenue. The new system also uses an average daily budget, although you should still judge your spending on a monthly basis.
How Long Leads are Stored For
Finally, don't treat Google Ads as a permanent CRM. Google currently says leads are stored for no more than 60 days, so you'll need to maintain your own customer and lead records.
We've also rebuilt our Owner's Field Guide specifically around the migrated Pay-Per-Lead system, based on what contractors actually see after migration.
The bottom line is that Google told everyone what was coming. Now we've actually managed accounts after the migration, and the biggest lesson is that there are more things to click, but that doesn't mean you should manage all of them.
Your leads page, yes. Your campaign settings, ask first.
What Are Local Services Ads Becoming?
Google Local Services Ads are now moving into Google Ads. In August this year (2026), Google began the first phase of its migration for selected US home services and storefront service advertisers, including plumbing, HVAC, electrical, appliance repair, house cleaning, lawn care, roofing, pest control, and moving businesses.
The migration will then expand to broader advertiser groups later in 2026, and the remaining business categories are scheduled for 2027.
The original Local Services Ads system won't just disappear overnight. Google is automatically moving any existing ad campaigns into a specialist Performance Max campaign designed around pay-per-lead goals.
The important point is that this does not mean your Local Services ads will suddenly start appearing across YouTube or the Display Network as with standard Performance Max campaigns. Google says these campaigns will continue serving on Google Search and Google Maps.
Your ad targeting will also remain keywordless. Google will use your services, service area, and other campaign settings instead of giving you a traditional keyword list to manage.
What's Changing Inside Google Ads?
Google's standalone local services ads dashboard is being replaced by Google Ads. What does that mean for you? Once your account has completed the migration, you'll manage all your campaign settings, as well as budgets, targeting, and leads, through the Google Ads interface.
Google says the entire campaign setup will automatically transfer, including:
Targeted locations
Service types
Business categories
Budget limits
Ad schedules
Business photos
Google will notify the account administrator 14 days before migration and again closer to the change, and the migration itself can take up to two weeks.
If you already run Google Ads campaigns, management should feel pretty familiar. That said, there are some important differences from ordinary Google advertising that may be confusing for local service area businesses. If you're looking for support with setup and migration preparation, we can help with just that, then continue managing your LSA account and profile once you're live.
Is The Pay Per Lead Model Staying?
Yes, the pay per lead model isn't changing with Google Local Services Ads. You'll still pay for valid leads, like eligible calls and message leads, rather than clicks. Google says the campaigns will continue appearing in the same Search and Maps positions as before.
But, the way you manage pay per lead goals and budgets is changing. Your average weekly budget will become a daily average budget, with Google dividing your previous weekly figure by seven. Your daily spend can vary, but Google says your monthly spend won't exceed the daily average multiplied by 30.4.
Manual bidding is also being removed. The old maximum cost settings and vertical-level target CPA (Cost Per Acquisition) approach are being deprecated.
For example, let's say you previously used different target CPA amounts for plumbing and HVAC within one campaign. Now, Google will calculate a unified campaign-level target. If you want separate bidding strategies, you can use separate campaigns.
What Happened To Lead Disputes?
Lead disputes is a bit of a confusing topic online at the moment, as there's a lot of outdated advice still out there.
In July 2024, Google replaced the manual lead dispute process with automated Local Services Ads lead credits. That means advertisers don't manually request credits for individual leads. Instead, Google's systems assess leads and might automatically credit those it considers invalid or low quality.
So if you find an article telling you to open your LSA dashboard and click a "dispute" button to challenge every bad lead, this is no longer accurate, as the process changed in 2024.
Google says it assesses leads when the customer makes contact, and it might reassess charged leads later. If Google determines a charged lead was low quality, it might issue a credit automatically. As an advertiser, you can still provide feedback on individual leads through the lead feedback survey.
Something else worth knowing is this: Google no longer supports credits specifically for "job type not serviced" and "geo not serviced" leads under the automated system.
What Happened To Google Guaranteed?
Google Guaranteed is now gone. In October 2025, Google replaced its previous LSA badges with a unified Google Verified badge. Eligible advertisers that had already completed the required verification didn't need to take any action to receive the new badge.
The change also removed the Google Money Back Guarantee associated with the old Google Guaranteed badge. So if your business is still using old website copy that references Google Guaranteed, it's worth updating it.
The new Google Verified badge reflects the relevant screening and verification checks a business has completed. Google says that this badge change itself doesn't affect Local Services Ads ranking.
How Important Is Your Google Business Profile Now?
Your Google Business Profile is already an important part of your local advertising, but the new Google Ads setup makes it even more so.
Your business name, physical address, and standard hours sync automatically from your Google Business Profile into Google Ads. You can also manage other targeting information, like service areas and ad schedules, after your profile migration. That means your business information needs to be accurate before you migrate.
Something else to note is that making significant changes to your business name, storefront address, or primary category can trigger another verification process. Google says that review typically takes 24 to 48 hours, and your campaign may temporarily pause during the review.
So, it's worth checking your profile before you make any major change in the middle of a busy advertising period.
Don't Lose Your Historical Reports
Your previous performance reports on things like past impressions, clicks, weekly spend, and ad-level performance won't transfer into Google Ads. Google recommends saving these reports before migration, with a dedicated option to download historical reports becoming available through the migration process.
Your historical reports can be useful later when you're assessing whether your campaigns are performing differently after the change. For that reason, this is probably the most practical thing to do before your account migrates.
The good news is that your past customer lead history, including things like contact details and message history, does transfer and will remain available in the new Leads area.
What Should You Do Now?
Now you know what has changed with Google Local Service Ads, follow these steps for what you should do from here:
Check your Google Business Profile and make sure your business name, address, hours, and other business details are correct.
Watch for Google's migration notification. You should receive advance notice before your account moves.
Download any historical performance reports that you still want access to.
Review your budgets and note that your average weekly budget will become a daily average budget.
Check your targeting, looking at service areas, categories, and ad schedules once the migration completes.
Check your leads to make sure that calls and messages are still being routed correctly.
Review your pay per lead goals. Remember that manual bidding is being removed, so your previous bidding setup might no longer be available post-migration.
The key thing to take away from this guide is that Local Services Ads aren't going away, but the way you manage them is changing.
Want Someone To Handle The LSA Changes For You?
Google's changes are one more reason to stop treating Local Services Ads as something you can switch on and forget. We're here to manage your Local Services Ads and the Google Business Profile behind them, including setup, service areas, budget management, lead-credit monitoring, and reporting.
Frequently Asked Questions About The Local Services Ads Migration
Where Do I Find My Local Services Ads Leads After Migration?
After migration, your Local Services Ads leads are managed inside Google Ads. Go to Google Ads → Goals → Conversions → Leads. This replaces the old Local Services Ads lead inbox. New leads appear as Active, and you can manage the lead from there.
Is Pay-Per-Lead Performance Max The Same As Regular Performance Max?
No. Google uses the Performance Max name for the migrated campaign, but Performance Max with pay-per-lead goals is a specialised campaign type for Local Services. It's still keywordless and continues to use the local-service model for targeting and ad delivery on Google Search and Google Maps. You shouldn't manage it as if it were a conventional PMax campaign.
Should I Mark Local Services Leads Booked And Completed?
Yes, when a customer schedules an appointment or job, you should mark the lead as Booked. Once the work has actually been completed, mark it Completed. These statuses give Google's automated systems more information about what happens after a lead is generated, so they should become part of your normal lead-management process.
Can I Still Dispute A Bad Local Services Ads Lead?
No, you can't dispute a bad local services ads lead as you could with the old manual lead-dispute process. This has now been replaced by Google's automated lead-credit system. You can still provide feedback about individual leads, but you shouldn't treat the lead-rating system as a refund button. A genuine customer who gets an estimate and chooses not to hire you is a lost sale, not automatically a bad lead. You'll need to rate spam, solicitation, wrong numbers, duplicates, and genuinely irrelevant enquiries accurately.
Should I Follow Google Ads Recommendations On A Migrated LSA Campaign?
No, you shouldn't automatically follow Google Ads recommendations on your migrated LSA campaign. The migrated account can display recommendations and controls associated with the broader Google Ads platform, but that doesn't mean every recommendation makes sense for your pay-per-lead local-service campaign. We don't recommend changing your bidding, budgets, conversion goals, service areas, or other important campaign settings simply to increase your Optimization Score. Our rule is simple: Leads page, yes. Campaign settings, ask first.
Why Does My Local Services Budget Show As A Daily Budget Now?
Your local services budget now shows as a daily budget because Google converts the old average weekly budget into an average daily budget by dividing it by seven. Your actual daily spend can fluctuate, but your monthly spending limit is about your average daily budget multiplied by 30.4.
How Long Does Google Keep My Local Services Leads?
Google currently states that lead data expires after 60 days. With that in mind, you'll need to maintain your own reporting or CRM process, as you can't rely on the Google Ads Leads screen as permanent customer history.
