What Google Local Services Ads Cost Per Lead

Part of: How to Set Up Google Local Services Ads, with every related question linked.

There is no single cost per lead for Local Services Ads. Google sets the price based on bids from similar local businesses, your job type, the type of lead, and the bidding mode you have chosen. Message leads are typically priced lower than phone calls, though that is not always the case. Because the auction is local and competitive, what a roofing lead costs in a dense metro will differ from what it costs in a smaller market. You pay per valid lead within a weekly average budget and a monthly maximum that Google will not exceed.

The most useful way to set a target lead cost is to work backward from what a job is worth to you. Take your average job revenue and multiply it by the share of your leads that become signed jobs: that is a rough value for one lead at your current conversion rate. Decide what share of that you are willing to spend to acquire the contact, and use that figure when choosing between Maximize leads and Target cost per lead modes. Our lead value guide walks through that calculation, and the LSA setup page explains how each bidding mode behaves once the account is live.