Google Local Services Ads: what the changes mean for you

Google is getting more specific about what you do

If you run a local service business, you may already know about Google's Local Services Ads. These are the listings that appear at the very top of a Google search with a "Google Verified" badge, and you only pay when someone contacts you directly through the ad, not just for a click.

Google has quietly updated which types of business can use them, and the list is now a lot more detailed. Previously, a garage might have been listed simply as an "auto repair shop". Now there are separate categories for brake shops, oil change services, tyre shops, windscreen repair, air conditioning service, and more. Restaurants have gone through a similar change, with dozens of cuisine types now listed individually.

For beauty businesses, the categories have expanded too, though it is worth noting that Google has also extended the list of sectors where its "Google Verified" badge is not available. Auto, beauty, and dining businesses currently fall outside that badge scheme.

Why does being in the right category matter?

The more precisely Google understands what you offer, the more likely your ad is to appear in front of someone searching for exactly that thing. A customer hunting for a transmission specialist is searching with very different intent from someone who just needs an oil change. If your business was previously lumped into a broad category, you may now have a more accurate option available.

It is worth logging into your Local Services Ads account and checking whether a more specific category fits your business better:

• Look at the current category list on Google's Local Services Ads setup page
• If a more specific option now exists for what you actually do, update it
• Make sure your service area and business description still reflect what you offer

What is happening to Local Services Ads overall?

The bigger news is that Google is gradually moving Local Services Ads into its main Google Ads platform over the next couple of years. According to Google, the shift will happen in stages, starting with certain businesses in the United States in mid-2026, with other countries following in 2027.

The good news for anyone already running these ads is that the core model is staying the same. You will still pay per valid lead rather than per click. Your ads will still show on Google Search and Google Maps. And Google has confirmed that existing campaigns will migrate across automatically, so you should not need to rebuild anything from scratch.

For most small businesses, the practical impact right now is fairly minimal. The main thing worth doing is checking your category and making sure your profile is accurate before any changes roll through.

If you are not sure whether Local Services Ads are right for your business or would like a hand making sense of your Google presence, we are always happy to take a look.