Understanding Google Local Services Ads and PMax: Key Insights You Need

Since 2016, Google Local Services Ads (LSAs) have been a key tool for businesses that provide services. These ads help local brands to connect with nearby customers who can book services directly through Google. One big advantage of LSAs is that companies pay for actual leads (interested customers) instead of just clicks.

Changes with Google Ads

Recently, Google announced important changes to Local Services Ads. These ads will now be managed within the Google Ads platform, instead of using a separate dashboard. This change means that LSAs are becoming part of Performance Max (PMax) campaigns with a pay-per-lead goal.

What’s New?

1. LSA Dashboard Will Close: The current LSA dashboard will be shut down. Existing LSA campaigns will automatically transfer to PMax campaigns under Google Ads. Advertisers should back up their historical data before this migration.
2. Integration of Google Business Profile: Your Google Business Profile (GBP) will now connect automatically with your Google Ads account. This integration was optional before but will now be required.
3. Changes in Bidding Strategies: Some bidding options for old LSA campaigns, like manual bidding, will no longer be available. You will need to use Smart Bidding for your PMax campaigns.
4. Daily Budgets Instead of Weekly: LSAs used to follow a weekly budget. Now, PMax campaigns will work on a daily budget system.
5. Removal of BBB Callouts: LSAs will no longer display Better Business Bureau (BBB) accreditation. Instead, advertisers can add specific details about their business, like working hours or payment methods.

What Will Stay the Same?

• Ad Placement: LSAs will still show only in Google Search and Google Maps.
• Payment Method: You will only pay when someone contacts you through your LSA.
• Targeting: Ads can still be targeted by service category and area.
• Lead Tracking: You will keep the same tracking options for leads, and past data will transfer over to Google Ads.

Transition Timeline

The migration to PMax campaigns will happen in several phases:

• August 2026: The transition starts with specific industries, including plumbing and electrical services.
• Late 2026: More businesses will be included in the migration.
• By 2027: The process will complete for all accounts.

During this transition, Google will notify businesses via email and in the LSA dashboard.

Why the Change?

This change will simplify the management of LSAs by consolidating them into the main Google Ads platform. Advertisers will no longer switch between different accounts.

Steps to Prepare

Here’s what you should do if you currently run LSA campaigns:

1. Look for notifications about your account’s migration date.
2. Download your historical LSA performance reports.
3. Make sure your LSA and GBP are updated and optimized.

For businesses not currently running LSAs, they can still set up new local profiles through the current LSA page until the new system is available.

Frequently Asked Questions

1. What will happen to the LSA dashboard?
   The LSA dashboard will be closed by 2027, and historical data needs to be backed up.
2. Will my business need re-verification?
   No, if you are verified through the GBP, there is no need for re-verification after migration.
3. Where will my ads show?
   PMax LSAs will continue to show in Google Search and Maps only.
4. How will I know when my ads are migrating?
   Google will send notifications one month before your migration.
5. Should I start running LSAs?
   If your business is eligible, running LSAs can be a smart move for attracting leads.

Conclusion

This transition to PMax for LSAs is designed to make advertising easier for service-based businesses. By preparing ahead and understanding the changes, you can adapt to this new system smoothly. Stay tuned for notifications and ensure your ads are optimized for the updated platform. If you have more questions, don’t hesitate to reach out for support.