October 28

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How To Dominate Google’s Most Profitable Real Estate — Local Services Ads (At Half The Cost Of Google Ads)

By Ian Cantle | President, Chief Marketing Strategist | Outsourced Marketing Inc.

October 28, 2025


If you’ve been spending money on SEO or pay-per-click and still struggling to stay ahead of your competitors, this might explain why.

There’s a new top dog in Google’s search results—and it’s not the organic listings.

It’s not the local 3-pack either.

It’s not even traditional Google Ads.

It’s something above all of them—literally.

It’s called Google Local Services Ads (LSAs), and it sits in what many are now calling “Spot Zero.”
 That coveted top slot that appears before anything else on a local search.

And the best part?
 It often delivers leads for up to 50% less than traditional Google Ads—without sacrificing quality.

Let’s unpack why LSAs are quickly becoming Google’s most profitable real estate—and how local businesses can start taking advantage of them right now.


What Are Google Local Services Ads (LSAs)?

Google LSAs are a specialized form of advertising for local service-based businesses—think roofers, electricians, pet groomers, accountants, HVAC pros, and dozens of other trades.

Unlike traditional PPC ads (where you pay per click), LSAs run on a pay-per-lead model.
 That means you’re only charged when someone actually contacts your business—not just clicks your ad.

Even better:
 These ads come with built-in trust. Businesses that qualify for LSAs get a “Google Guaranteed” badge, which increases consumer confidence and conversion rates.

So you’re showing up first and looking more credible. That’s a win-win.


Spot Zero: Why Visibility Has Changed

Google Local Services Ads - Spot Zero

When a local customer searches for services — “plumber near me,” “best dog groomer in Toronto,” “emergency electrician” — Google now often shows LSAs first, sitting above:

  • The traditional Google Ads
  • The Google Maps 3-pack
  • All organic results

This is Spot Zero—the absolute highest point of visibility in a local search.

Being in this position means your business shows up before anything else, whether the search happens on desktop or mobile. It’s like having your billboard placed at the busiest intersection in town… without paying for foot traffic that walks right past.

Most business owners don’t even realize this placement exists—yet it’s quietly stealing market share from those still stuck competing in the lower tiers.


Why LSAs Often Cost Less (But Convert More)

Here’s where it gets really interesting.

Many businesses assume that showing up higher on Google means spending more.

With LSAs, the opposite is often true.

Let’s break it down:

Ad TypeBilling ModelAvg. Lead CostVisibility
Traditional Google AdsPay-per-click$25–$75 per click (or more)Below LSAs
Google LSAsPay-per-lead$15–$45 per lead (only if they contact you)Spot Zero

That’s up to 50% less per qualified lead—while appearing higher in the search results.

And because LSAs include your reviews, hours, service areas, and that green Google badge, they convert at a higher rate than most other ad formats.

No complex landing pages. No split-testing. No wasting money on tire-kickers who never call.


The Trust Factor: Why LSAs Feel More “Local”

One overlooked advantage of LSAs is the trust psychology they create.

Traditional ads often feel like… well, ads.

But LSAs show up looking like verified recommendations: a photo, a rating, and that big green Google Guarantee badge. To the average consumer, it feels like Google is vouching for your business.

That’s powerful.

Especially when you’re in a high-trust industry like home services, financial services, health and wellness, or legal.


Who Can Use Google LSAs?

who can use Google LSAs

LSAs aren’t open to every business—but Google supports a wide range of local services.

Some of the most eligible and profitable categories include:

  • Plumbers, HVAC, electricians, and roofers
  • Pet services like grooming and boarding
  • Real estate agents and property managers
  • Accountants and tax prep pros
  • Lawyers (family, criminal, estate)
  • Cleaning services, locksmiths, and more

If your business serves a local area and provides a service—there’s a good chance you qualify.


How To Get Listed In Google LSAs

To appear in LSAs, you’ll need to go through a short approval process. This isn’t a typical ad setup—you’re applying for a verified listing.

Here’s a quick breakdown of what’s required:

  • A verified Google Business Profile
  • Valid business license and insurance
  • Background checks (for owner or field workers, depending on industry)
  • A clean record with Google (no spammy behaviour or suspensions)

Once approved, you set your service areas, business hours, and job types—and Google starts showing your ad above all others.

From there, you only pay when a customer calls, messages, or books through the ad.


What To Expect Once You’re Live

what to expect once your Google LSA is live

LSAs aren’t just about showing up—they’re about staying on top.

Here are a few pro tips to make sure you get the most from your listing:

  • Respond quickly to leads (speed affects your ranking)
  • Collect reviews consistently through your Google profile
  • Keep business info updated (hours, service areas, etc.)
  • Dispute unqualified leads — Google often refunds for spam or unrelated contacts

Done right, this isn’t just a better ad—it’s a smarter system.


Final Thoughts

Local businesses have spent years battling it out in SEO, the local 3-pack, and expensive pay-per-click ads.

But Google’s algorithm—and its priorities—have shifted.

LSAs now sit at the very top of local search results.
 And they often deliver more calls, better leads, and lower costs than anything below them.

If you’re serious about showing up where it matters—and not burning through your budget doing it—Local Services Ads deserve your attention.

Because Spot Zero isn’t just the best position on Google.

It’s where the most profitable leads live.

Let’s get your business showing up at the top of Google results. Book a chat with us to see how we can help.

About the author

Ian Cantle is the President and Marketing Strategist at Outsourced Marketing. His 20+ years in marketing and communications in a variety of industries have provided him with a unique perspective on what works and what doesn't in marketing. Ian founded Outsourced Marketing to fill a gap in the marketplace between businesses and sound marketing strategies and marketing systems. His goal is to take the mystery out of marketing and show business owners how a systematic approach to their marketing can provide exceptional results while easing the burden on them.

Ian has also co-authored the book 'Content Marketing for Local Search: Create Content that Google Loves & Prospects Devour' that provides local businesses with an unfair competitive advantage, available on Amazon.


Want to discover the Outsourced Marketing difference? Book a free discovery call or call us at 905-251-8178.

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