Google Local Services Ads Switches from Flat Pricing to a Bidding System

Google is opening up Local Services Ads (LSAs) to auction-based pricing. This comes after a successful test in a subset of professional services categories.

A selection of advertisers across the expanding list of LSA categories will now have access to bidding in a new beta test. They will be notified by Google if they are eligible to participate. The selected advertisers don’t have to participate; they can continue using fixed pricing if desired.

Under the new auction-based pricing advertisers can only set one bid regardless of lead type. In other words, they must bid the same amount for a call, message or booking. If they operate in multiple verticals – as some in the home services industry do – they can bid separately by vertical (e.g., roofer vs. general contractor).