You're paying $69 per Google Local Service Ads lead. Your competitor answers in 3 seconds. You answer in 30 minutes—if you answer at all.
They win 8x more jobs.
Here's the brutal truth: In our analysis of 13,175 customer service calls from 47 home services contractors over 7 months, 74.1% of calls went completely unanswered. That's three out of every four potential customers calling someone else.
When you're paying $50-100 per LSA lead, missing 74% of them isn't just wasting money. It's creating a double penalty: lost revenue from missed jobs AND a tanked LSA ranking that shows your ad to fewer people going forward.
The problem with Google Local Service Ads isn't lead generation. It's call handling.
This post shows you the math on what missing LSA calls actually costs, why instant response is everything, and how AI phone integration turns the same LSA spend into 4x the revenue.
What Are Google Local Service Ads?
Google Local Service Ads (LSAs) are pay-per-lead advertisements that appear at the very top of Google search results—even above traditional Google Ads. Instead of paying every time someone clicks your ad, you only pay when a potential customer actually contacts you through the ad.
Pay-Per-Lead vs Pay-Per-Click
Here's the key difference: traditional Google Ads charge you for clicks, whether that person calls or not. Google Local Service Ads only charge you when someone picks up the phone and calls, or sends you a message through the platform.
For a plumber, that might be $69 per lead. For an HVAC contractor, around $80. For a roofer, $162.
You get the customer's name, phone number, and details about what they need. Google provides a unique forwarding number that tracks every call.
Where LSAs Appear in Search Results
When someone searches "emergency plumber near me" or "HVAC repair," Local Service Ads appear in a carousel at the top of the page, complete with your business photo, star rating, and the Google Verified badge.
According to recent research, 27.78% of consumers prefer clicking Local Service Ads, making them the second most popular option after Google Maps (41.27%). Traditional Google Ads come in at just 11%.
People trust LSAs because Google has verified your business.
Industries That Qualify
LSAs are available for home services (plumbing, HVAC, electrical, roofing, house cleaning, landscaping), legal services, healthcare, wellness, and more. If you're a service business that goes to customers or they come to you, there's likely an LSA category for you.
Google Local Service Ads vs Google Ads
If you're already running Google Ads, you might be wondering what makes LSAs different—and which one is better for service businesses.
Payment Model Differences
Google Ads: You pay per click. Someone sees your ad, clicks it, maybe calls, maybe doesn't. You paid for that click either way.
Google Local Service Ads: You pay per lead. You only get charged when someone actually calls or messages you through the ad. No contact = no charge.
For service businesses, this is huge. You're not paying for tire-kickers or people who clicked by mistake. You're paying for actual customer inquiries.
Trust Signals: Google Verified Badge
Google Verified badge (formerly Google Guaranteed, updated October 20, 2025) appears next to LSA listings and gives customers confidence that Google has screened your business.
To get verified, Google requires:
- Background checks on you and your employees
- Proof of insurance
- License verification (where applicable)
- Business registration confirmation
Regular Google Ads don't come with this trust signal. LSAs do.
Which One Is Right for Service Businesses?
For contractors, plumbers, HVAC techs, electricians, and similar service businesses, LSAs typically perform better because:
- They target people actively searching for your service right now (high intent)
- They appear above regular ads (better visibility)
- They build trust with the Google Verified badge
- You only pay for actual contacts, not clicks
Many successful contractors run both: LSAs for immediate leads, Google Ads for broader brand awareness.
The 5-Minute Rule—Why Instant Response Wins LSA Leads
You paid $69 for that LSA lead. If you don't answer the phone in 5 minutes, you might as well have set that money on fire.
The 8x Conversion Rate Difference
According to industry research, responding within 5 minutes makes you 8 times more likely to convert that lead compared to waiting 30 minutes.
Think about that. Same lead. Same service needed. Same pricing. The only difference is you called back in 5 minutes instead of 30.
8x higher conversion rate.
That's the difference between winning 1 out of 10 LSA leads versus winning 8 out of 10.
How Google Measures Response Time
Google doesn't just care whether you answer calls. Google's official guidance states that "having a consistently fast response time could improve your ad's ranking on search and increase your ability to receive leads."
They track your average response time during business hours over the last 90 days. If you respond fast (within minutes) at least 90% of the time, your ad gets boosted. Respond slowly or not at all, and Google drops your placement.
The "Responds in a Few Minutes" Badge
If you maintain a fast response time, Google will display "Typically responds in a few minutes" on your LSA listing. This badge dramatically improves click-through rates because customers know you'll actually answer.
But here's the problem: you're on a job site. You're on a ladder. You're under a house. You're elbow-deep in drywall. You can't answer your phone in 5 minutes.
In our analysis of 13,175 calls, contractors answered just 25.9% of calls. That means 74.1% went to voicemail.
You're not winning the 5-minute game if you're only answering 1 out of 4 calls.
The Double Penalty of Missed LSA Calls
Missing an LSA call doesn't just lose you that one job. It triggers a cascade of problems that costs you for months.
Lost Revenue: The Immediate Cost
You pay for the LSA lead whether you answer or not. Miss the call, and you've spent $69 for nothing.
Worse, that customer doesn't wait around. They call the next contractor on the list—the one who answers in 3 seconds instead of never.
For a typical contractor handling 42 calls per month, with 74.1% going unanswered, that's 31 missed calls. If just 20% of those would have converted at an average $3,500 job value:
31 missed calls — 20% conversion — $3,500 = $21,700 per month in lost revenue
That's $260,400 per year you're leaving on the table.
One of our plumbing customers didn't realize the scope of the problem until he saw the data: "I didn't even know I was missing that many calls. I just thought business was slow."
He had 76 missed calls in a single month.
Tanked Ranking: The Hidden Penalty
Here's where it gets worse. According to Google's phone responsiveness metric, Google calculates your average phone lead responsiveness over 90 days by dividing connected calls by total calls.
If you're missing 74% of calls, your responsiveness score is terrible. Google's official guidance explicitly states: "If you regularly fail to answer calls or respond to messages, your ad ranking may be affected."
Lower ranking means:
- Your ad shows up less often in search results
- You get fewer leads shown to you
- The leads you do get are lower quality (people scrolling past better-ranked competitors)
- Your cost per lead goes up (you're competing from a weaker position)
So you're not just losing the immediate job. You're poisoning your LSA account for the next 90 days, reducing your future lead flow and increasing your costs.
Miss calls today, pay for it for three months.
Google Local Service Ads Cost Per Lead (2025 Data)
Let's talk numbers. How much do LSAs actually cost, and is it worth it?
Cost Per Lead by Industry
According to 2025 industry cost data, here's what different service businesses pay per LSA lead:
- Personal Injury Lawyers: $249
- Roofers: $162
- HVAC: $80
- Plumbers: $69
- Electricians: $35-70
- Painters: $40
- House Cleaning: $28
Pricing benchmarks show the average ranges from $15 to $100 depending on your industry, location, and how competitive your market is.
Monthly Budget Recommendations
Google recommends setting a budget for at least 10 leads per week, which translates to 40-50 leads per month.
For a plumber at $69 per lead, that's roughly $2,000-3,500/month.
For a roofer at $162 per lead, you're looking at $6,500/month minimum.
These aren't small numbers. You're making a real investment.
Is LSA Worth the Cost?
Here's the thing: LSA is absolutely worth it—if you answer calls and convert at a decent rate.
Let's say you're a plumber spending $2,000/month on LSA (29 leads at $69 each). If you answer even 50% of calls (better than the 25.9% average) and close 30% of those answered calls, you'd win about 4.4 jobs per month.
At $3,500 per job, that's $15,400 in revenue from a $2,000 spend. Not bad.
But if you're missing 74% of calls like the average contractor, you're only answering 7.5 leads, winning 2.25 jobs, and generating $7,875 in revenue. Your ROI drops to 294%—still positive, but you're leaving $7,525 on the table every single month.
LSA isn't expensive. Missing the calls is expensive.
The After-Hours LSA Problem
Here's what nobody talks about: your Google Local Service Ads are running 24/7. Your phone is not.
LSAs Run 24/7, But You Don't
Your LSA shows up when someone searches at 9 PM on a Saturday. Or 6 AM on a Tuesday. Or 11 PM on a Friday night when their AC just died in 95-degree heat.
You're asleep. You're at dinner. You're watching your kid's soccer game.
The call goes to voicemail. They call the next contractor. That contractor has an AI answering service that picks up in 3 seconds.
They book the job. You paid for the lead anyway.
Emergency Calls = Higher Value
In our analysis of 13,175 calls, 15.9% contained urgency language like "emergency," "urgent," or "ASAP." Another 6.2% were true emergencies: burst pipes, no power, AC out in extreme heat, heater failures in freezing weather.
Emergency jobs average $4,200 in our data—significantly higher than routine work at $3,500.
These emergency calls happen disproportionately outside business hours. When someone's basement is flooding at 2 AM, they're not waiting until 9 AM to call contractors. They're calling everyone now.
If you're not answering, you're missing your most valuable leads.
Missing just one emergency call per week costs you $16,800 per month in lost revenue. That's $201,600 per year in high-margin work you're handing to competitors.
Weekend and Night Lead Conversion
Most contractors answer calls Monday through Friday, 9 AM to 5 PM. That's 40 hours per week.
There are 168 hours in a week.
You're available for 24% of the time your LSA is showing to customers.
The other 76% of the time? Straight to voicemail.
And because Google tracks your responsiveness 24/7, all those missed after-hours calls drag down your ranking just as much as missed business-hour calls.
AI Phone Integration—The LSA Success Multiplier
The only way to win at Google Local Service Ads is to answer every call instantly. The only way to do that without hiring a full-time receptionist (at $35,000/year) is AI phone integration.
How AI Answers LSA Calls Instantly
An AI receptionist answers your phone in under 5 seconds, every single time. No lunch breaks. No sick days. No "I'm on a job site."
When an LSA lead calls, the AI picks up immediately:
"Thank you for calling [Your Business]. I'm the AI assistant. How can I help you today?"
It handles the conversation naturally, asking about their service needs, location, urgency level, and preferred callback time.
For routine questions—hours, service area, pricing estimates, scheduling—the AI handles everything and books the appointment directly into your calendar.
For emergencies, the AI detects urgency keywords ("no heat," "burst pipe," "no power," "ASAP") and transfers the call to your phone immediately.
You get 100% answer rate. Zero missed calls. Perfect LSA responsiveness score.
Perfect Call Tracking and Data Collection
Every LSA call is logged automatically:
- Caller name and phone number
- Service requested
- Urgency level (routine vs emergency)
- Location and service area confirmation
- Preferred appointment time
- Full call transcript
- Call recording for quality review
In our analysis, 25.4% of customers explicitly requested callbacks (632 calls out of 2,487). Human receptionists forget or lose notes. AI captures every callback request perfectly.
No lead slips through the cracks.
CRM Integration and Follow-Up Automation
The AI syncs every LSA call to your CRM within seconds. If you're using ServiceTitan, HighLevel, Jobber, Salesforce, or any other system, the data flows automatically through HTTP webhooks.
No manual data entry. No "I'll add that to the system later" that never happens.
After the call, the AI can send automated SMS follow-ups:
"Thanks for calling! Here's your booking confirmation and our service area info: [link]"
Or for leads you couldn't take immediately:
"We received your call about [service needed]. We'll call you back within 2 hours to schedule your appointment."
The complete loop closes automatically. LSA lead calls — AI answers — collects info — books appointment — syncs to CRM — sends confirmation — you show up to the job.
LSA ROI Calculator—Before vs After AI Integration
Let's put real numbers to this. Here's what happens to a typical plumber's LSA campaign with and without AI integration.
Current State: 25.9% Answer Rate
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Without AI (Manual Answering):
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LSA monthly spend: $2,000 (29 leads at $69 each)
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Calls actually answered: 25.9% = 7.5 leads
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Conversion rate on answered calls: 30%
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Jobs won: 2.25 jobs/month
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Average job value: $3,500
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Monthly revenue: $7,875
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Net profit: $5,875 (after $2,000 ad spend)
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ROI: 294%
Not terrible. But you're leaving money on the table.
AI-Enhanced: 100% Answer Rate
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With AI Phone Integration:
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LSA monthly spend: $2,000 (29 leads at $69 each)
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Calls answered by AI: 100% = 29 leads
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Conversion rate: 30% (same close rate, just on ALL leads now)
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Jobs won: 8.7 jobs/month
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Monthly revenue: $30,450
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AI phone service cost: $199/month
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Total marketing + AI cost: $2,199
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Net profit: $28,251
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ROI: 1,285%
Revenue increase: +$22,575 per month
That's a 287% revenue increase from the same LSA spend.
The 4X Revenue Multiplier
Same ads. Same leads. Same pricing. Same close rate.
The only difference is you answered every call instead of missing 74%.
You didn't need to spend more on advertising. You didn't need to hire more salespeople. You didn't need to change your services or pricing.
You just needed to pick up the phone.
AI phone integration costs $199/month—less than the price of a single LSA lead for most contractors. It pays for itself with the first job it helps you win, then generates $22,000+ in additional monthly revenue.
The question isn't whether you can afford AI phone integration with your LSAs.
The question is whether you can afford to keep missing 74% of the calls you're already paying for.
How NextPhone Works With Google Local Service Ads
NextPhone is built specifically for service businesses running Google Local Service Ads. Here's how it solves the instant response problem.
Instant Pickup for Every LSA Call
When an LSA lead calls, NextPhone answers in under 5 seconds—beating Google's 5-minute response requirement by a landslide.
The AI is trained on your specific business:
- Services you offer
- Service area coverage
- Pricing (ballpark estimates for common jobs)
- Hours of operation
- Seasonal availability
- Common customer questions
It sounds natural and conversational, not robotic. Most customers don't even realize they're talking to AI—they just appreciate getting instant answers instead of voicemail.
Emergency Detection and Routing
NextPhone detects urgency in real-time. When a customer says "emergency," "urgent," "ASAP," "no heat," "burst pipe," or similar keywords, the AI immediately flags the call as high-priority.
For true emergencies, NextPhone can transfer the call to your phone instantly while you're still on the line, giving you a seamless handoff:
"I'm going to connect you with [Name] right now. Please hold."
You take over the call with full context of what the customer needs.
For routine calls, the AI handles everything: answers questions, collects information, books the appointment, and sends confirmation.
In our data, 15.9% of calls are urgent. AI routes those to you immediately while freeing you from the 84% of calls that don't need your personal attention.
Automatic CRM Sync and Follow-Up
Every LSA call syncs to your CRM within seconds:
- Customer name, phone, email
- Service requested and urgency level
- Appointment date/time (if booked)
- Call transcript and recording
- Disposition (booked, callback requested, quote sent, etc.)
NextPhone integrates with 50+ systems including ServiceTitan, HighLevel, Jobber, and any CRM with webhook support.
The AI also sends automated follow-up texts:
- Appointment confirmations with links to reschedule if needed
- Service area information
- Pricing guides for the service they inquired about
- Callback confirmations ("We'll call you back by 2 PM today")
You show up to pre-qualified, confirmed appointments instead of chasing cold leads.
That's the difference between LSA as a lead generation expense and LSA as a profit multiplier.
Frequently Asked Questions
How much do Google Local Service Ads cost?
LSA costs vary by industry and location, typically ranging from $15 to $100 per lead. Home services see costs like plumbing ($69/lead), HVAC ($80/lead), roofing ($162/lead), and electrical ($35-70/lead). You only pay when a customer contacts you through the ad—no payment for clicks that don't convert. Most contractors spend $2,000-$6,500 per month on LSAs depending on their budget and lead volume goals.
What happens if I miss a Google Local Service Ads call?
You still pay for the lead even if you don't answer. The customer immediately calls the next contractor who shows up in their search results—whoever answers first wins the job. Worse, Google tracks your missed calls over 90 days and uses that data to lower your ad ranking, which means you'll get shown to fewer potential customers going forward. Missing calls creates a double penalty: immediate lost revenue plus long-term reduced visibility.
Can AI really handle emergency service calls?
Yes. AI detects urgency through keywords like "emergency," "burst pipe," "no power," or "ASAP." For true emergencies, the AI can transfer the call immediately to your phone so you take over personally. For routine calls, the AI handles questions about hours, service area, pricing, and scheduling fully. You control the routing rules—the AI follows your exact instructions on which calls to transfer and which to handle completely.
Will customers know they're talking to AI?
Modern AI sounds natural and conversational. The AI is upfront: "I'm the AI assistant for [Your Business], how can I help?" Most customers care about getting fast, accurate answers more than who provides them. Many prefer AI for simple questions because there's no hold time, no "let me transfer you," and instant responses. For complex situations or when requested, the AI transfers to a human seamlessly.
How long does it take to set up AI with Google Local Service Ads?
Setup takes 15-30 minutes and requires no technical skills. You provide basic information: business name, services offered, service area, hours, pricing ranges, and common customer questions. The AI automatically trains on your website and knowledge base. You can go live the same day and start answering LSA calls immediately. No changes are needed to your existing LSA campaign—the AI simply answers the phone number you're already using.
What if I already have a CRM like ServiceTitan or HighLevel?
NextPhone integrates with 50+ CRM platforms including ServiceTitan, HighLevel, Jobber, Salesforce, and more. All LSA call data syncs automatically: customer name, phone, email, service requested, urgency level, and appointment details. Integration works through HTTP webhooks—it's universal and requires no custom development. Your existing workflow stays the same, just with automatic data population instead of manual entry.
Is Google Local Service Ads worth it for small contractors?
LSAs are worth it if you can answer calls quickly and convert leads efficiently. They're not worth it if you miss 74% of calls like the average contractor. With AI phone integration, LSAs become highly profitable: you get instant response, 24/7 coverage, and perfect call tracking. For our plumber example, $2,000 LSA spend + $199 AI service generates $28,000+ in monthly profit. LSAs work best for service businesses with average job values of $2,500 or higher.
Start Capturing Every LSA Lead
Google Local Service Ads work. But only if you answer the phone.
Missing 74% of calls—the industry average—turns LSA from a growth engine into an expensive lesson. You waste ad spend, lose jobs to faster competitors, and tank your ranking so Google shows your ad less often.
The solution isn't spending more on ads. It's answering every call in under 5 seconds, 24/7, with perfect tracking and automated follow-up.
AI phone integration does that for $199/month—less than the cost of a single LSA lead, and 93% cheaper than hiring a receptionist.
Same LSA spend. Four times the revenue. Starting today.
Stop losing $21,700 per month to missed LSA calls. Start your free 14-day trial of NextPhone and see what 100% answer rate does for your bottom line.