Are Google Local Services Ads worth the money?
They were for the painting company in this example, by a wide margin. But the answer depends on three things: how much a job is worth to you, how fast you answer leads, and whether you can see which leads become jobs. Here are the real numbers, then how to decide for your business.
What did Local Services Ads actually cost and return?
A family-owned residential painting company in Southern California ran three ad channels from January to August 2026. Every lead was tracked to closed revenue in the CRM.
| Channel | Spend | Leads | Cost per lead | Jobs | Cost per job | Revenue | Return |
|---|---|---|---|---|---|---|---|
| Google Local Services Ads | $10,548 | 46 | $229 | 8 | $1,319 | $116,257 | 11x |
| Facebook / Instagram | $17,707 | 170 | $104 | 5 | $3,541 | $50,255 | 2.8x |
| Yelp Ads (estimated) | $37,053 | ~70 | ~$529 | ~9 | ~$4,260 | ~$103,765 | ~2.8x |
Local Services Ads were the smallest budget but brought in the most revenue per dollar: $116,257 from $10,548.
Why did the more expensive leads win?
Because of who was on the other end. Someone searching "painter near me" on Google is ready to hire. Someone scrolling Facebook who taps an ad is curious. The numbers show it:
- 63% of Local Services Ads leads booked an estimate, and 28% of those estimates closed.
- 29% of Facebook leads booked an estimate, and 10% of those closed.
Facebook leads cost less than half as much, but each Facebook job cost nearly three times more to win. Judged by cost per lead alone, the company would have cut its best channel.
When are Local Services Ads worth it?
- Your jobs are worth far more than a lead. At about $13,000 per painting job, a $229 lead is easy to justify.
- You can answer fast. Google weighs responsiveness, and buyers call more than one business. See our guide to speed to lead.
- You have, or can earn, strong reviews. Reviews affect both ranking and who calls.
- You track to closed jobs. Without that, you can't tell a great month from a bad one.
When are Local Services Ads not worth it?
- Your average job is small compared to what leads cost in your area.
- Nobody can answer the phone during business hours.
- You have few or poor reviews and no plan to fix that.
- You'll judge results after one month. In this case, there were two months with no closed jobs, then $37,000 closed in July.
How should you test Local Services Ads?
- Set up tracking first, so every lead is tagged with its source. In this case, 39 customers had been wrongly logged as plain "Google."
- Start with a budget you can keep running for at least three months.
- Turn off job types you don't want.
- Answer every lead fast and dispute the invalid ones weekly.
- After a quarter, compare cost per closed job, not cost per lead, against your other channels.
Our lead tracking service handles the tracking. For how ranking and setup work, read our guide to Google Local Services Ads, and see the full home service ads case study.
Common questions
Are Google Local Services Ads worth it for contractors?
Often, yes, when jobs are worth much more than the cost of a lead and you can answer quickly. One painting company got $11 back for every $1 spent over eight months.
What is a good cost per lead for Local Services Ads?
It depends on your industry and market. Judge cost per closed job instead. In one case, $229 leads produced $1,319 jobs while $104 Facebook leads produced $3,541 jobs.
How long should I test Local Services Ads?
At least three months. Results often come in bunches; one painting company had two slow months, then closed $37,000 in July.
Are Local Services Ads better than Facebook ads?
For people actively searching for a service, they often are. In one tracked case, Local Services Ads returned 11x versus 2.8x for Facebook and Instagram.
About Rob Pene
Rob is the founder of Mission Driven Brand. For 15+ years he's helped growing businesses turn more leads into sales. He's written for Business Insider, CEOWORLD and AllBusiness.