The Truth About Google Local Services Ads: How the Algorithm Really Works (and Why Your Phone Might Not Be Ringing)

Why Your LSA Leads Suddenly Stopped

If you are running Google Local Services Ads and not getting the calls you expected, you are not alone. Many business owners assume that once they complete the background checks, upload license information, and set up their profile, the leads will start rolling in. But LSAs do not work like traditional Google Ads. You cannot simply pay more and rank higher

Local Services Ads are powered by a trust algorithm. Google is not just deciding who shows up. It is deciding who deserves to be trusted with a customer who is ready to hire right now.

Understanding how this system works is the difference between your phone ringing all day and wondering why the new competitor in town is getting all the leads.

Why Google Created Local Services Ads

Google built LSAs to solve one major problem. When homeowners search for service providers, they want someone who is legitimate, local, and reliable. Google needed a way to protect customers from scams, fly-by-night contractors, and unverified businesses.

So instead of ranking ads by how much someone spends, Google ranks LSAs by performance, responsiveness, and trust signals.

Google is not looking for the business that bids the highest. Google is looking for the business most likely to answer the phone, show up, and do the job well.

The Three Factors That Decide Who Gets LSA Leads

There are three core ranking factors that determine how many calls and messages you receive from Local Services Ads.

1. Responsiveness Rate

When someone taps the Call or Message button, Google watches what happens next. If you answer quickly and consistently, your responsiveness score goes up. If you let calls go to voicemail or take too long to reply, Google lowers your visibility.

To Google, unanswered calls = bad customer experience.

This is the number one reason businesses say their LSA “just stopped working.”

2. Review Strength and Velocity

Google does not only care how many reviews you have. It cares how recently you earned them and how consistently customers leave positive feedback.

If your reviews have gone quiet, your ranking weakens. If you are steadily earning new five star reviews, Google interprets that as proof that customers trust you.

Review velocity is one of the most powerful signals in the LSA system.

3. Proximity and Coverage Area Accuracy

Google prioritizes sending leads to the provider closest to the job location with a strong trust score.

If your service area is set too wide, you may be losing leads to providers located closer to the searcher. If your office location is not optimized or verified properly, your visibility may be capped without you even knowing it.

Why a New Company Can Outrank a Business With 20 Years of Experience

This is where most people get frustrated.

A business that has been around for twenty years can lose leads to a brand new company with five reviews.

Why? Because the new company:

• Answers every call
  
• Responds to every message immediately
  
• Actively asks happy customers for reviews
  

Meanwhile, the established company may be:

• Letting calls roll over
  
• Busy in the field with no receptionist coverage
  
• Relying on old reputation rather than recent reviews
  

Google does not reward seniority. Google rewards real time trust behavior.

Why Your Local Services Ads Might Not Be Working Right Now

If your phone is not ringing from LSAs, it is almost always one of the following:

• Missed calls or slow responses
  
• No recent reviews coming in
  
• Incorrect service area settings
  
• LSA categories not matching how customers search
  
• Customer disputes not resolved
  
• Profile missing business credentials or service details
  

Google will not penalize you quietly. It simply shows someone else instead.

How to Fix Your LSA Performance Starting Today

Here is the simple, effective playbook that consistently improves ranking and lead volume.

Step 1: Prioritize Answering Every Call

If you cannot answer live, use:

• A dedicated answering service
  
• A call routing system that rings multiple phones
  
• Or a receptionist service trained for LSA calls
  

Every missed call harms your ranking.

Step 2: Get Three to Five New Google Reviews Each Month

Make it a habit to ask every happy customer for a review. Small, steady review growth beats big spikes followed by silence.

Step 3: Tighten Your Service Area Settings

Focus your LSA coverage on the areas you actually want and can respond to quickly. This increases match quality and lead flow.

Step 4: Improve Your Profile Details

Add real photos, clear service descriptions, your service guarantees, and hours of availability. Profiles that look detailed and human convert higher.

The Real Key: LSA Is Not Advertising. It Is Reputation Performance.

Local Services Ads are not traditional marketing. They are a performance-based reputation ranking. Google is measuring one thing: “Can we trust you with a customer who is ready to buy right now?”

If the answer is yes, your phone rings. If the answer is no, someone else gets the lead.

Want Help Fixing Your LSA Performance?

If your phone isn't ringing, our team can help. We fix LSA performance by improving responsiveness, building review velocity, and aligning your profile. Let us take this off your plate so you can run your business.

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