Google Local Services Ads charge you for a valid lead, not for a click. Google’s help pages do not list Australia or New Zealand among the countries where the product runs, so most Australian and New Zealand tradies cannot use it today.
The model is still worth understanding. It shows what a written definition of a paid lead looks like, and it is a useful yardstick for any business that sells leads. This article uses only Google’s own help pages, and says where they leave a gap.
How a pay per lead from Google works
Local Services Ads are not the same product as the Search ads most tradies know. Google’s help says that with Local Services Ads, you pay for valid leads. Leads are checked when the customer first makes contact, and invalid or low-quality leads are not charged.
What a lead can be, per the same page:
- Phone: an answered call, a call-back where you speak to the customer, a missed call during business hours where the caller stays on the line more than 20 seconds, or a voicemail.
- Message: a text or an email. Google says these are typically priced lower than phone leads, though not always.
- Booking request: available only in the United States and Canada.
Google also says prices vary by location, job type, lead type and bidding mode, and that follow-up contact from the same number or email within 15 days is not charged again. Google does not publish one price. You find out in your own account.
Compare that with standard Google Ads. Google’s help on cost says you set the most you will pay for a click, an auction decides whether your ad shows, and what you pay is often less than your maximum. You pay for the click, whether or not the person turns out to be a customer.
Who qualifies and what verification involves
Local Services Ads are screened. Google’s page on how providers qualify says screening depends on the service type, the country, and whether you advertise directly or through a partner. Depending on the category and region, Google may check:
- licences, for the business, its owners or managers and its workers, to the extent practical;
- insurance, where applicable;
- background checks, by third-party firms, on the business, owner or individual workers;
- for some categories, a more detailed review including business registration.
Reviews continue after approval. Google says serious or repeated negative feedback can lower a provider’s ranking or hide it entirely.
Google’s help page on the badge says Local Services Ads is moving all advertisers to a single Google Verified badge, and that Google is discontinuing its Money Back Guarantee. Older articles that describe other badges may be out of date.
Where Local Services Ads are available
This is the part that matters most for an Australian or New Zealand reader. Google’s Local Services terms of service page asks you to pick your country from a list of 11: Austria, Belgium, Canada, France, Germany, Ireland, Italy, Spain, Switzerland, the United Kingdom and the United States. Australia and New Zealand are not in it.
When we opened Google’s Local Services Ads web address while writing this, it redirected to Google’s Australia and New Zealand Google Ads page instead.
That is not proof of a ban. It is the absence of any Google page, that we could find, saying the product runs here. Also note that even where it runs, Google says availability and the allowed service types vary by country, and that some features, like booking requests, are limited to the United States and Canada. If an agency tells you it can set up Local Services Ads for you in Australia or New Zealand, ask for Google’s page that says so.
Budget, disputes and refunds for bad leads
Google’s charging page says you set an average weekly budget. You can spend more than that in a given week, but not more than your monthly maximum. When you reach it, your ad stops for the rest of the month unless you change the budget.
On bad leads, Google says it keeps assessing lead quality over a 30-day period. When a charged lead turns out to be poor quality, a duplicate or invalid, Google adds the charge back to your account balance automatically. You can also report a poor lead through a feedback survey. This is not available to every advertiser: the page excludes health care and tax specialists, and advertisers in Europe, the Middle East and Africa.
How it compares
| Local Services Ads | Google Ads search | Leads bought from a business | |
|---|---|---|---|
| You pay for | A valid lead | A click | Set by the seller |
| Screening of you | Yes, by category and country | Not described on the cost page | Varies by seller |
| Available in AU and NZ | Not shown in Google’s lists | Yes | Yes |
For more on the second and third columns, see Google Ads or buying leads and buying leads for your trade business.
What it does not do
- A valid lead is a contact, not a quote request from someone who has decided. A call from someone price-shopping is still a valid call.
- It does not answer the phone for you. Speed still decides who gets the job.
- It does not tell you whether the person has the money or the authority to go ahead. That is what a conversation does. How to qualify a building enquiry covers it.
PreBuild Systems works differently. We run ads, ring every homeowner who enquires, check six things, and send each one to a single business. See how homeowners reach you.
Common questions
Do Local Services Ads charge per click?
No. Google’s help says that with Local Services Ads you pay for valid leads, while standard Google Ads search campaigns charge per click.
Are Local Services Ads available in Australia?
We could not find a Google page that says so: Google’s Local Services terms page lists 11 countries, and Australia and New Zealand are not among them. Check with Google before you rely on it.
What is Google Guaranteed now?
Google’s help page says Local Services Ads is moving all advertisers to a single Google Verified badge, and that it is discontinuing its Money Back Guarantee.
Can I get money back for a bad lead?
Google says it assesses charged leads over 30 days and automatically adds the charge for poor-quality, duplicate or invalid ones back to your account balance. This is not available to every advertiser or region, so check your own account.