Are Local Service Ads Worth It? A Guide for Home Service Businesses

March 6, 2025

Laurie Bell

You're a small business owner in the home services industry—so you've likely heard about Google Local Service Ads (LSAs). Those ads that put a nice green “Google Guaranteed” stamp beside your Google Business Profile and push it to the top of local search results. They look great. But are they worth it?

As someone who manages LSAs for clients at Grandir Solutions, I can confidently say: yes, for most businesses, they are absolutely worth it.

Let’s break it down.

The Pros of Local Service Ads

  1. A Steady Flow of Leads at a Fair Price. LSAs bring in high-quality leads at a fair cost, often making them one of the best-performing ad options available. You only pay per lead, not per click, which means you're paying for real potential customers rather than just website visits - this sets them apart from traditional Google Search Ads.

  2. They Complement SEO & Google Business Profile. LSAs work hand-in-hand with your Google Business Profile (GBP) and organic SEO efforts. They give your business prime real estate at the very top of search results, increasing visibility and credibility.

  3. More Affordable Than Other Lead Gen Services. Compared to Yelp, Angie’s List, or Thumbtack, LSAs typically offer better pricing and lead quality. Plus, you don’t have to compete in a race to the bottom with competitors bidding on the same leads.

  4. Refunds for Spam Leads. One major advantage of LSAs is that Google will refund you for invalid leads—like wrong numbers, bot spam, or irrelevant service requests—as long as someone is actively monitoring the account (At Grandir, I handle this for the clients I manage to maximize their ROI).

  5. No Long-Term Commitment. You can start with as little as $50 and pause your ads anytime. There's no required minimum spend, and no risk of getting locked into an underperforming campaign. We recommend at least $500 per month for best results, but even a small budget can bring in great leads.

  6. The Only Job Left for You? Closing the Leads! Since LSAs bring in real customers actively searching for your services, the only thing left for you to do is pick up the phone and close the deal. You got it.

The Only Real Drawback

For some businesses, LSAs may not spend as expected, or even at all. This could be due to:

  • A highly competitive market where competitors outspend you

  • A targeted location that doesn’t have enough homeowner demand

However, LSAs operate on a pay-per-lead basis, so there’s no real downside. If Google doesn’t generate leads for you, you don’t pay. It’s like having a billboard that only costs you money when someone calls your business—if no one responds, you don’t pay a dime.

Setup Can Be a Pain (But That’s a Good Thing!)

Another small hurdle is the setup process—becoming Google Guaranteed requires background checks, insurance verification, and documentation. While this can be a hassle, it’s actually an advantage: many competitors won’t take the time to get set up, giving you a leg up. And, at Grandir, I handle most of the setup process for my clients, so it’s not really a pain in the butt…for you.

Final Verdict: Should You Run Local Service Ads - And At What Budget?

Absolutely. We recommend LSAs to nearly all of our clients. Some of our top clients allocate $20K+ per month toward LSAs, but you don’t have to start anywhere near that high. With a budget of just $200–$500 per month, you can often get solid results while staying flexible. Since you can start small and pause at any time, there’s virtually no risk in trying them out.

If you’re interested in getting set up with LSAs or need help managing your ads, reach out to us at Grandir. We’ll set it up with you, monitor your leads, and ensure you’re getting the best possible return on your investment.

Ready to start generating more high-quality leads? Book a call here.