Google is changing Local Services Ads: what local businesses need to know.

This matters most for contractors, tree services, pest control, HVAC, plumbers, electricians, roofers, movers and other service businesses. The good news: Local Services Ads aren't going away, and you won't suddenly start paying for clicks. But the way you manage them is changing a lot.

What's changing?

Businesses used to manage Local Services Ads in a separate LSA dashboard. Google is moving all of that into Google Ads. Existing campaigns move automatically into specialized Performance Max campaigns built around pay-per-lead goals. After your account moves, you'll manage these directly in Google Ads:

• Leads and budgets
• Targeting and service areas
• Ad schedules and campaign performance
• Call and message routing

You're still paying for leads, not clicks

This is the most important part. These aren't regular Performance Max campaigns. Google says you'll keep paying for valid leads, such as phone calls and messages, not for every click. Ads keep showing in the familiar Local Services spots on Google Search and Google Maps, and campaigns stay keywordless: Google uses your services, categories, service areas and settings to match you with customers. To your customers it will look about the same. The big difference is behind the scenes.

Where did my leads go?

Your leads are still there. In Google Ads, go to Goals → Conversions → Leads. That page replaces the old LSA lead inbox. You can see the lead type, whether you were charged and leave lead feedback. You can download leads for your CRM, and if message leads are on, read and reply to messages right in Google Ads. Google says your customer lead history moves over too, including contact details, past message threads and older call recordings.

What doesn't transfer: your performance reports

Customer lead history moves over, but historical LSA performance reporting does not. Past campaign reports, including spend, lead counts and other metrics, won't migrate into Google Ads. Google recommends saving them before your migration. If you compare year over year or track cost per lead, this data is valuable.

Weekly budgets become daily budgets

LSAs used weekly budgets. After migration, Google converts your average weekly budget into a daily average by dividing it by seven. Google says monthly spend is capped at your daily average budget times 30.4, though daily spend can go up and down with demand.

Manual bidding is going away

Google is removing manual bidding options like setting a maximum cost per lead, and vertical-level Target CPA settings are being phased out. If you offer more than one category of service, for example plumbing and HVAC, and want different bidding for each, Google recommends separate campaigns. Campaign structure matters more than ever.

Your Google Business Profile matters even more

Google Ads will pull information from your Business Profile to fill in your local campaign, including your business name, address and hours. So an outdated profile isn't just an SEO problem anymore. It can affect your paid local ads too. Review your name, address, phone, hours, categories and photos regularly. Google notes that big changes to your business name or address can trigger a verification review and may pause a campaign while it's reviewed.

When will my account change?

Google is rolling this out in phases. The first phase started in August 2026 for select U.S. home and storefront service advertisers, including plumbing, HVAC, electrical, appliance repair, house cleaning, lawn care, roofing, pest control and moving. More advertisers move later in 2026, and remaining categories and international advertisers in 2027. You should get an email about 14 days before your transition, plus notices in your LSA dashboard.

What to do right now

• Save your historical LSA performance reports before you migrate
• After migrating, review your new daily budget, service areas, categories, ad schedule and lead routing
• Make sure your Google Business Profile is accurate
• Get familiar with Goals → Conversions → Leads in Google Ads
• Give it time: Google says performance can take up to two weeks to settle after migration

What this means for local marketing

We think this change points to something bigger. Google keeps bringing local search, Business Profiles, automated bidding, lead generation and Google Ads closer together. For local businesses, just "turning on Google Ads" isn't enough. Your Business Profile, Local Services presence, website, reviews, SEO and paid ads increasingly work together to decide how visible you are. Businesses that treat them as one system will have a real edge over competitors who treat them separately.

Sources

• Google Ads Help: Local Services Ads transition to Performance Max campaigns with pay-per-lead goals

See our Google Ads & Local Services Ads management →