Google LSA Cost & Pricing Model
Last updated: 2025-01
How Google Local Services Ads pricing works, what determines lead costs, and how to manage your budget.
Key Takeaways
- •LSAs use a pay-per-lead model, not pay-per-click
- •Lead costs vary by category, location, and competition level
- •You can set a weekly or monthly budget cap to control spending
Overview
Understanding LSA pricing is essential for evaluating whether the channel is profitable for your business. Unlike Google Ads, LSAs use a pay-per-lead model where you're charged only when a potential customer contacts you.
How Pricing Works
Lead costs are set by Google and vary based on your category and location. You cannot bid on lead prices like you would with CPC advertising. Instead, you set a budget cap that limits your total spending over a given period.
Managing Your Budget
You can set weekly or monthly budget caps to control spending. If leads are not converting profitably, you can lower your budget or pause your ads. You can also dispute invalid leads to receive credits for spam calls, wrong numbers, or inquiries outside your service area.
Common Questions
How much does an LSA lead cost?
Lead costs vary significantly by category and location. They can range from under $20 to over $100+ depending on the service type and market competition.
Can I control my LSA spending?
Yes. You set a budget that Google will try to stay within. You can also pause your ads at any time and dispute invalid leads.
What counts as a billable lead?
Phone calls and messages from potential customers count as leads. You can dispute leads that are spam, wrong numbers, or outside your service area.
Related Reading
What Are Google Local Services Ads?
An introduction to Google Local Services Ads (LSAs), how they appear in search results, and why they matter for local service businesses.
Are Google LSAs Worth It?
Evaluating whether Google Local Services Ads are a good investment for your service business.
Google LSA vs Google Ads
Comparing Local Services Ads with traditional Google Ads search campaigns for local service businesses.
Why LSA Leads Drop Suddenly
Common reasons for sudden decreases in LSA lead volume and how to diagnose the cause.
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