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Local Services Ads Are Moving to Google Ads: What Changes in 2026

DRDR Team October 16, 2026 9 min read
Local Services Ads are moving into Google Ads As Performance Max campaigns with pay-per-lead goals AUG 2026 Selected US home and storefront services plumbing, HVAC, roofing… LATE 2026 Service-area businesses without storefronts plus custom bidding or booking 2027 Non-US accounts and remaining categories STAYS THE SAME You pay per valid lead, not per click Shows on Search and Maps only Targeting by category and area Google Verified badge carries over Lead history and recordings move CHANGES Managed inside Google Ads Weekly budget becomes daily average Manual and per-vertical bids removed BBB callouts no longer supported Old performance reports do not move Download your Local Services reports before your account migrates. They do not come across. DIGITAL RHODIUM
Figure 1. The Local Services Ads move to Google Ads: timeline, what stays and what changes. Based on Google Ads Help, read 16 October 2026.
Key Takeaways
  • Google is moving Local Services Ads into Google Ads as Performance Max campaigns with pay-per-lead goals.
  • August 2026: selected US home and storefront services such as plumbing, HVAC, electrical, roofing and pest control. Late 2026: service-area businesses without storefronts. 2027: everyone else.
  • You still pay only for valid leads, and ads still show only on Search and Maps.
  • Your weekly budget becomes a daily average (weekly divided by 7), with monthly spend capped at that figure times 30.4.
  • Manual bidding, per-vertical bids and BBB callouts go away, and old performance reports do not migrate. Save them first.
Quick Answer

Google is moving Local Services Ads into Google Ads as Performance Max campaigns with pay-per-lead goals. US home services such as plumbing, HVAC and roofing move first, from August 2026. You still pay per valid lead on Search and Maps, but budgets, bidding and reporting now work the Google Ads way.

If you run Local Services Ads for a plumbing, HVAC or roofing business, the dashboard you have used for years is going away. Google is folding Local Services into Google Ads, and the first accounts started moving in August 2026. The ads themselves will look much the same to customers. What changes is everything behind them: where you set budgets, how bidding works, what reports you keep and who gets lead notifications.

This guide covers what Google has published about the move, what it means in practice for a local service business, and the checklist we are working through with Houston-area accounts before they migrate. It is part of our Google Ads management playbook.

What Is Changing With Local Services Ads?

Local Services Ads are becoming a campaign type inside Google Ads: Performance Max with a pay-per-lead goal. Google describes it as “a more integrated, self-service experience inside the Google Ads platform.” Budgets, targeting, lead replies and reporting move into the Google Ads interface, and the separate Local Services dashboard closes. Logging in on or after your migration day takes you to the campaign overview in Google Ads instead.

Your locations, service types, business categories, budget limits, ad schedule and business photos are transferred automatically. Your lead history, including contact details, message threads and call recordings, moves to a new Leads page. Your past performance reports, such as impressions, clicks, weekly spend and ad-level reports, do not.

When Will My Local Services Ads Account Move?

PhaseWhenWho moves
Phase 1August 2026Selected US home and storefront service advertisers, including plumbing, HVAC, electrical, appliance repair, house cleaning, lawn care, roofing, pest control and moving
Phase 2Late 2026Service-area businesses without storefronts, and accounts with custom bidding or booking setups
Phase 32027Non-US accounts and all remaining categories

Google emails the account administrator 14 days before migration, sends a final reminder 7 days before and confirms afterwards, with banners in the dashboard as well. If you have not had a notice yet, you have at least two weeks. Google asks advertisers to allow up to two weeks after migration for everything to complete and for performance to settle.

What Stays the Same?

  • You pay per valid lead. Calls and messages, not clicks.
  • Placement. Ads show on Google Search and Google Maps only, in the same positions as before.
  • No keywords. Targeting is still based on your service categories and service areas.
  • Verification. Your verified status and Google Verified badge carry over, and insurance and license reverification are no longer required at migration.

What Changes for Budgets, Bidding and Reporting?

Budgets become daily averages

Local Services used weekly budgets. Google Ads uses average daily budgets, so your weekly budget is divided by 7. Monthly spend is then capped at the daily average multiplied by 30.4, the same rule as every other Google Ads campaign. A $350 weekly budget becomes $50 a day, and the most you can be charged in a month is $1,520. Daily spend can run higher on busy days, but the monthly cap holds.

Manual bidding goes away

Manual options such as a maximum cost per lead are no longer supported, and per-vertical Target CPA is replaced by a single campaign-level Target CPA. If you need different bidding for, say, plumbing and drain cleaning, Google’s advice is to run a separate campaign per vertical.

Callouts and assets

BBB callouts are no longer supported. Google asks you to replace them with at least six other structured callouts, such as business hours or payment methods. You can upload up to 100 additional business photos. Headlines, videos and sitelinks do not apply to these campaigns.

Reporting and notifications

In Google Ads you track “Conversions” (the leads you are charged for), “Cost” and “Cost / conv.” Lead notifications move to a single setting, and every account user and direct manager is opted in by default, whatever their old preferences were. At least one person must stay opted in.

Business Profile edits can pause you

Name, address and hours sync one way from your Google Business Profile. Small changes sync within 24 hours. A significant change to your business name, storefront address or primary category triggers a review that typically takes 24 to 48 hours, and the campaign may pause during it. Avoid those edits around your migration date.

How Is It Different From Regular Performance Max?

Pay-per-lead (former Local Services)Standard Performance Max
You pay forValid leadsClicks
Where it showsSearch and MapsSearch, Maps, YouTube, Gmail, Display, Discover
TargetingService categories and areas, no keywordsAsset groups, audience signals and Google’s automation
CreativeBusiness Profile info, photos, calloutsHeadlines, descriptions, images, videos
BadgeGoogle Verified, in eligible categoriesNone

The name is shared, but the product is not the same. Treat it as Local Services living inside Google Ads, not as a Performance Max campaign you can tune the usual way.

What Happened to Google Guaranteed?

The badge changed before this move. From 20 October 2025, Google replaced the Google Guaranteed, Google Screened and License Verified by Google badges with a single Google Verified badge, and it discontinued the money-back guarantee that came with Google Guaranteed. Businesses that had already passed verification were moved across automatically. The migration to Google Ads keeps that status.

Running Local Services and Search side by side?

Our free Google Ads audit checks both: tracking, wasted spend and whether your Search campaigns are bidding against your own leads. You keep the report.

Get a free Google Ads audit

What Should You Do Before Your Account Migrates?

This is the checklist we are using with local service accounts. None of it takes long, and the first item cannot be undone later.

  1. Download or screenshot your Local Services reports. Impressions, clicks, weekly spend and ad-level data will not move.
  2. Write down your current cost per lead by service and area. It is your baseline for judging the new bidding.
  3. Check who is the Admin. Google’s notices go to the account administrator. Make sure that is someone at your business, not a former agency.
  4. Decide whether you need separate bids per service. If so, plan one campaign per vertical, because per-vertical Target CPA is going away.
  5. Convert your budget. Weekly divided by 7 is the new daily average. Confirm the monthly cap (daily times 30.4) is what you expect to pay.
  6. Prepare at least six structured callouts to replace any BBB callout.
  7. Freeze big Business Profile edits to name, address or primary category around the migration date.
  8. Check who will get lead notifications. Everyone with access is opted in by default after migration.
  9. Plan two weeks of patience. Google says to allow up to two weeks for the migration to finish and performance to stabilize before making big changes.

Should You Still Run Search Ads Alongside?

For most home service businesses, yes, with tracking on both. Local Services gives you a verified badge and pay-per-lead pricing, but no keyword control: Google decides which searches match your categories. Search campaigns let you go after specific jobs, such as emergency calls or a single high-value service, and choose exactly which areas and hours to cover.

The comparison that matters is cost per lead from each, measured the same way. After migration both sit in the same Google Ads account, which makes that comparison easier than it has ever been. Our Sugar Land and Katy pages show how we split budgets between the two for local service businesses.

Frequently Asked Questions

Selected US home and storefront service businesses, such as plumbing, HVAC, electrical, roofing and pest control, started moving in August 2026. Service-area businesses without storefronts follow in late 2026, and non-US accounts and remaining categories in 2027. Google emails the account administrator 14 days before your migration.

Yes. Google says you still pay only for valid leads, such as phone calls and messages, rather than for clicks. What changes is how budgets and bids are set: weekly budgets become daily averages and manual cost-per-lead bidding is removed.

Yes. Google says verified status and the Google Verified badge transfer automatically, and insurance and license reverification are no longer required at migration. New business checks may still appear as notifications.

Not yet. Google says pay-per-lead campaigns cannot be created in Google Ads for now, so new campaigns and new advertisers still start at g.co/localservices. Campaign creation in Google Ads is planned for later.

Your lead history, including contact details, message threads and call recordings, moves to the new Leads page in Google Ads. Past performance reports such as impressions, clicks and weekly spend do not, so download or screenshot them before your migration date.

The Verdict

For customers, almost nothing changes: the same ads, in the same places, with the same verified badge. For you, the move puts Local Services inside the same account as the rest of your Google Ads, with daily budgets, one Target CPA per campaign and Google Ads reporting. That is a good thing for anyone who wants to compare channels honestly, as long as you keep your old data and keep control of the account.

Save your reports, record your current cost per lead, check who the Admin is, and give the new campaign two weeks before judging it. If you would like someone to look over the setup before or after your migration, our free Google Ads audit covers Local Services and Search together.