If your business currently uses Google Local Services Ads (LSAs), you may have noticed a major change coming: Google is moving Local Services Ads into the Google Ads platform.
Beginning in August 2026, Google began a phased migration of eligible Local Services advertisers to a new campaign type within Google Ads: Performance Max campaigns with pay-per-lead goals. The transition will continue in phases through 2026 and 2027. (Google Help)
For businesses that rely on Local Services Ads to generate phone calls and customer inquiries, this may sound like a major overhaul.
The good news? Many of the things that made Local Services Ads valuable are staying the same.
However, the way campaigns are managed, budgets are handled, and performance is reported will change.
Here’s what businesses need to know.
What Are Google Local Services Ads?
Google Local Services Ads were designed specifically for local service businesses looking to connect with customers who are actively searching for their services.
Unlike traditional Google Search Ads, Local Services Ads operate on a pay-per-lead model. Instead of paying every time someone clicks an advertisement, businesses pay when they receive a qualifying customer lead.
Depending on the business category, leads can include phone calls, messages, and other direct customer interactions.
Local Services Ads have also helped businesses stand out prominently in Google Search and Google Maps, often displaying important information such as reviews, service areas, business hours, photos, and verification badges.
What’s Happening to Local Services Ads?
Google is transitioning Local Services Ads into a more integrated experience within Google Ads.
Existing eligible Local Services campaigns are being migrated to a specialized Performance Max campaign optimized for pay-per-lead goals.
This means businesses will eventually manage their campaigns through Google Ads rather than through the separate Local Services Ads dashboard.
Google is handling the transition in phases rather than moving every business at once.
The first phase began in August 2026 for selected U.S. home and storefront service businesses, including industries such as:
- HVAC
- Plumbing
- Electrical
- Roofing
- Pest control
- Lawn care
- House cleaning
- Appliance repair
- Moving services
Additional businesses and categories will transition during late 2026 and into 2027.
What Is NOT Changing?
This is the part many business owners will be happy to hear.
You Will Still Pay for Leads — Not Clicks
One of the biggest advantages of Local Services Ads is remaining intact.
The new Performance Max campaigns with pay-per-lead goals will continue using a pay-per-lead model.
Instead of paying simply because someone clicked your advertisement, you continue to focus your advertising spend on direct customer connections such as qualifying phone leads. Text and email leads may also be available depending on the campaign setup.
Your Ads Will Still Focus on Local Customers
The goal remains the same: connect your business with customers searching for the services you provide in your service area.
You can continue defining locations such as cities, counties, and ZIP codes, along with the business categories and service types you want to target.
Your Ads Will Still Appear on Google Search and Google Maps
The migration does not mean your Local Services presence is suddenly becoming a traditional display advertising campaign.
Google says these pay-per-lead campaigns will continue showing on Google Search and Google Maps, in the same local ad positions customers are accustomed to seeing.
Your Campaign Will Still Be Keywordless
This is another important distinction.
These campaigns are not traditional Google Search campaigns where you build extensive keyword lists and bid on individual keywords.
Instead, Google’s system uses your business information, service categories, service areas, and other campaign settings to determine when your ad is relevant.
Your Google Business Profile Remains Important
Your Google Business Profile continues to play an important role.
Google uses information from your Business Profile to help populate the campaign. Core information such as your business name, address, and hours is synced from your Google Business Profile.
That makes maintaining an accurate and complete Google Business Profile more important than ever.
So, What’s Actually Changing?
While the customer-facing experience may feel familiar, there are several important changes behind the scenes.
1. Your Campaign Will Move Into Google Ads
The biggest change is where you manage your advertising.
Instead of using a separate Local Services Ads dashboard, your campaign will eventually be managed within Google Ads.
That means businesses and marketing agencies will have a more centralized place to manage Google advertising campaigns and customer leads.
2. Budgeting Is Changing
Local Services Ads historically used weekly budgets.
Under the new system, budgets will be converted into average daily budgets.
Google says your historical average weekly budget will be divided by seven to establish the daily average budget. Monthly spending will be based on the daily budget multiplied by Google’s average 30.4-day month.
This is an important change for businesses that carefully monitor advertising budgets.
It’s worth reviewing your budget after migration rather than assuming everything will operate exactly as it did before.
3. Manual Bidding Is Going Away
Another major change involves bidding.
Google is moving away from manual bidding options previously available through Local Services Ads.
Industry-level Target CPA settings are also being replaced by Google Ads campaign-level bidding functionality.
For businesses accustomed to manually controlling their cost per lead, this will require some adjustment.
4. Reporting Is Changing
This is one of the biggest items businesses should pay attention to before their migration occurs.
Your historical Local Services Ads performance reports will not automatically transfer into Google Ads.
Google has indicated that historical reports will be available for download through the migration process, but businesses that need immediate access to their data should save or document their reports before migration.
If you track:
- Lead volume
- Cost per lead
- Monthly spending
- Calls
- Messages
- Conversion trends
- Campaign performance
make sure that historical information is saved before your account transitions.
What About Your Google Verified Status?
For businesses that have already completed the required verification, Google says the existing verification status and Google Verified badge will transfer automatically during migration.
Google also states that insurance and license reverification will no longer be required as part of the standard migration, although additional business-level verification may still be requested when necessary.
That means businesses shouldn’t assume they need to start the verification process all over again simply because their campaign is moving into Google Ads.
What About Reviews?
Reviews remain an important part of the local advertising ecosystem.
Your Google Business Profile information, including review data, continues to contribute to the information customers see when evaluating your business.
This is another reason your Google Business Profile, reputation management, and advertising strategy should not be treated as separate marketing efforts.
They work together.
What Businesses Should Do Now
If you’re currently running Local Services Ads, this transition is a good reason to take a closer look at your overall Google marketing strategy.
1. Watch for Google’s Migration Notifications
Google says account administrators will receive advance notifications before their campaign migrates, including an email approximately 14 days before migration. Additional reminders will follow.
Don’t ignore those notifications.
2. Save Your Historical LSA Reports
Before your account migrates, download or document the performance information you’ll want to reference later.
Your historical LSA reports will not simply appear inside your new Google Ads account.
3. Review Your Budget
Because weekly budgets are being converted into average daily budgets, make sure the resulting budget still aligns with your marketing goals.
4. Review Your Google Business Profile
Make sure your:
- Business name
- Address
- Phone number
- Hours
- Services
- Service areas
- Photos
- Categories
- Reviews
are accurate and up to date.
Your Google Business Profile is becoming an even more important foundation for your local advertising strategy.
5. Don’t Assume “Google Ads” Means Traditional Search Ads
This is an important distinction.
Your new campaign is being managed inside Google Ads, but Performance Max with pay-per-lead goals is not the same thing as a traditional keyword-based Search campaign.
It is specifically designed to preserve the pay-per-lead model and local-service advertising experience while giving businesses access to the Google Ads platform.
Is This the End of Local Services Ads?
Not exactly.
The standalone Local Services Ads management experience is being phased out for businesses that migrate, but the core concept of connecting local businesses with high-intent customers through a pay-per-lead advertising model remains.
In other words, the name and platform are changing, but the fundamental goal isn’t:
Connect local customers who are looking for your services with your business.
Google is essentially bringing that functionality into its broader advertising ecosystem.
What This Means for Your Marketing Strategy
The biggest takeaway for businesses is that Google advertising is becoming more interconnected.
Your Google Business Profile, local presence, advertising campaigns, reviews, service areas, website, and conversion tracking all contribute to the larger picture.
That means businesses should think beyond simply “running an ad.”
Instead, ask:
Is everything a customer sees when they find us on Google accurate, professional, and designed to turn a search into a lead?
That’s where a comprehensive digital marketing strategy becomes important.
Callan Group Communications Can Help
Changes to Google’s advertising platforms can be difficult to keep up with—especially when Google changes the terminology, dashboard, bidding options, and reporting at the same time.
At Callan Group Communications, we help businesses navigate the constantly changing digital marketing landscape.
From Google Business Profile management and local SEO to paid advertising, website content, social media, email marketing, and AI-focused search strategies, we help businesses create marketing systems that work together.
If your business currently uses Local Services Ads, now is a good time to review your account, save your historical data, evaluate your budget, and make sure your Google Business Profile is ready for the transition.
Not sure what the Google LSA migration means for your business? Contact Callan Group Communications. We’re here to help you understand what’s changing—and make sure your marketing strategy keeps moving forward.
