There is no fixed price. Google Local Services Ads (LSAs) charge you for each valid lead, not for clicks, and Google does not publish a standard cost per lead because it depends on your location, the job and your bidding mode. You set a weekly budget and find your own cost in a test month. This guide, written for service business owners, shows what counts as a charged lead, how the cap works and how to estimate your bill.
How do Local Services Ads charge?
You pay per valid lead. Google's help page says you are charged for each valid lead you receive through your Local Services ad, and leads judged invalid or low quality at first contact are not charged. A lead is a customer reaching out to you, so you are not paying when someone merely sees your ad.
This differs from regular Google Ads, where you pay for clicks. With LSAs you are billed for the lead.
What counts as a charged lead?
A lead is charged when a real customer contact reaches you. According to Google's lead rules, these count as valid:
- You answer a call, or you speak with the customer after calling them back.
- You miss a call during business hours and the caller stays on the line for more than 20 seconds.
- You get a text message, email or voicemail from the customer.
- You get a booking request (US and Canada only).
A missed call can still be a billed lead, and it is also a lost job. Google also says missed calls may negatively affect your responsiveness, one of the factors in your ranking.
How much does one lead cost?
It varies, and Google does not publish one number. Its help page says lead prices depend on your location, job type, lead type and bidding mode. Google adds that message leads are usually cheaper than phone leads, but not always, because the price reflects how likely the customer is to book.
Per-lead averages published online vary widely by trade and city, so treat any single figure with caution. The reliable method is to start with a budget you can afford and measure your own cost per lead over a month or two.
How does the LSA budget work?
You set an average weekly budget, and Google caps your monthly spending at that amount times the average number of weeks in a month. Once you reach the cap, your ad stops showing for the rest of the month unless you raise the budget. In a busy week you can spend more than the weekly figure, as long as the monthly cap holds.
An average month has roughly 4.3 weeks (52 divided by 12), so a $200 weekly budget gives a cap near $870. The example below uses invented dollar figures to show the math.
| Item | Example |
|---|---|
| Average weekly budget | $200 |
| Monthly maximum | $200 x about 4.3 = roughly $870 |
| If a lead costs $40 | About 5 leads in a typical week |
| If a lead costs $80 | About 2 to 3 leads in a typical week |
If the lead count is too low for your needs, raise the budget, improve your profile or both.
What affects the cost of a Local Services Ads lead?
Your bid and your profile quality both matter. Google's ad ranking page says your bid is the most you are willing to pay for a lead, though you may pay less, and that higher-quality profiles may rank higher and may also pay lower costs per lead.
Google's ranking page names these among the factors that shape how likely you are to produce a lead:
- Rating and review count
- Average response time and missed calls
- How well your services and business bio match the search
- High-quality images and completed verification checks
- Message and booking options turned on, which give customers more ways to reach you
Google's own tip is to set the bidding mode to Maximize Leads, which lets Google set bids to get the most leads for your budget. Reviews feed into this too, so our guide to growing your Google Business Profile helps both your map ranking and your ad quality.
Can you get money back for bad leads?
Sometimes. According to Google's lead rules, charged leads are reassessed over about 30 days and low-quality ones may be credited automatically. You can also report a poor lead through the feedback survey on that lead. Credits are not available for health care verticals, tax specialists or advertisers in EMEA, so check your category before you count on them.
How do you avoid paying for missed calls?
Answer the phone fast, because a missed call can be billed and can lower your responsiveness. Turn on message leads so a text can catch the customer you cannot call back right away. If calls come in while you are on a job, a missed-call text back or an AI receptionist can reply for you.
Google's lead rules page also notes that billing runs through Google Ads, so an account suspension there also suspends your LSAs, and that you can see charges under the Billing menu in your leads inbox.
Are Local Services Ads worth it for a small business?
They are worth testing if one booked customer is worth far more than the cost of a lead. They are a poor fit if you cannot answer calls or your margin is thin.
Do the math first: expected leads equal your monthly budget divided by cost per lead, and expected jobs equal leads times your close rate. Then compare jobs times your average job value with the budget. With invented numbers, an $870 budget at $40 a lead gives about 21 leads, and a 25% close rate gives about 5 jobs. At $500 per job that is $2,500 in work against $860 in spend. Results vary, and Google does not promise a lead volume.
LSAs do not replace your free map listing, which our local SEO work covers. If you want help comparing the two for your market, ask for a free quote.
Frequently Asked Questions
Are Local Services Ads pay per click?
No. You pay per valid lead, such as a call, message or booking request, not per click on the ad.
What happens when my monthly cap is reached?
Your ad stops showing for the rest of the month unless you change your budget.
Do I pay for a call I missed?
Possibly. If you miss a call during business hours and the caller stays on the line for more than 20 seconds, Google counts it as a valid lead.
Does the Google Verified badge change my ranking?
Google says the change does not affect Local Services Ads ranking. New advertisers still have to complete screening and verification to earn the badge.