Google is moving Local Services Ads into Google Ads as Performance Max campaigns with pay-per-lead goals. The migration started in August 2026 for nine trades: plumbing, HVAC, electrical, appliance repair, house cleaning, lawn care, roofing, pest control, and moving. If a trades business has been getting leads from the top of Google search through the standalone LSA dashboard, that system is going away.
This is not a beta test or a rumor. Google's official migration documentation at support.google.com/google-ads/answer/17213585 confirms the timeline and the changes. Every LSA advertiser will migrate.
Here is what changes, what stays the same, and what trades businesses need to do before the switch.
What is changing
The standalone LSA dashboard goes away
The current Local Services Ads dashboard, where leads are checked, bad calls are disputed, and budgets are set, is being replaced by the Google Ads interface. Everything moves into one place: the same Google Ads account where search campaigns and Performance Max campaigns already live.
One campaign-level Target CPA replaces per-service targets
This is the biggest change for multi-service trades businesses. Under the old LSA system, a plumbing company that also does HVAC could set different target costs per lead for each service. Plumbing leads at $50, HVAC leads at $70. After migration, one campaign-level Target CPA applies to everything. The algorithm may chase cheaper plumbing leads and under-invest in higher-revenue HVAC leads.
Businesses that want to maintain separate bid control per service need to set up separate campaigns per vertical before migration. A dedicated plumbing campaign and a dedicated HVAC campaign, each with its own Target CPA. This split has to be done through the Local Services interface at g.co/localservices before migration, not after.
Daily budgets replace weekly budgets
LSA budgets were set weekly. The new Performance Max pay-per-lead campaigns use daily budgets. This changes how spend pacing works. A weekly budget of $500 spread evenly means roughly $71 per day. A daily budget of $71 means the same thing, but the algorithm can spend it unevenly across the day. Monitor spend more closely in the first two weeks after migration.
Automated bidding replaces manual
The old LSA system let advertisers manually adjust bidding. The new PMax pay-per-lead campaigns use Google's automated bidding, optimized toward the campaign-level Target CPA. Manual bid adjustments are no longer available.
What stays the same
Pay per lead, not per click
The biggest reassurance: Performance Max pay-per-lead campaigns still charge per lead, not per click. The billing model has not changed. According to SearchLight Digital's analysis of 888 contractor accounts and $6.72 million in tracked LSA spend, the channel delivers an average cost per lead of $53 across trades, with a 44% booking rate and a blended 7.84x return on ad spend. For HVAC specifically, the average cost per lead is $51 with a 9.55x return on ad spend.
The Google screened badge carries over
The "Google Screened" or "Google Guaranteed" badge that appears on LSA listings carries over to the new PMax campaigns. License verification and background check status are preserved.
Reviews still drive ranking
Customer reviews on Google Business Profile still factor into LSA ranking. The migration does not change how reviews affect ad position.
Ads still appear at the top of search
The ad placement has not changed. Local Services Ads (now PMax pay-per-lead campaigns) still appear at the top of Google search results, above organic results and above the local pack.
What trades businesses need to do now
Step 1: Check for the migration notification
Google sends a 14-day admin email notification before an account migrates. Check the Google Ads account associated with the business for any migration banners or emails. If the notification has not arrived yet, the business is not in phase 1 but should still prepare.
Step 2: Export LSA reports
Before migration, export all LSA reports from the standalone dashboard. Lead data, dispute history, cost per lead by service, and booking rates. Once the dashboard goes away, this data may be difficult to retrieve. Export to CSV and save copies.
Step 3: Split campaigns by service (if multi-service)
If the business offers multiple services at different price points (plumbing and HVAC, for example), set up separate campaigns for each vertical in the Local Services interface before migration. This preserves the ability to set different Target CPA amounts per service. Go to g.co/localservices and create separate campaigns.
Step 4: Set the campaign-level Target CPA
Calculate the blended Target CPA based on current per-service costs. If plumbing leads cost $50 and HVAC leads cost $70, and the business gets 60% plumbing leads and 40% HVAC leads, the blended average is $58. Set the campaign-level Target CPA at $58 to start. Adjust based on performance after migration.
Step 5: Set the daily budget
Convert the weekly LSA budget to a daily budget. A $500 weekly budget becomes approximately $71 per day. Round to $70 or $75. Monitor spend in the first two weeks to make sure the daily budget is pacing correctly.
Step 6: Monitor the first two weeks
After migration, check the Google Ads dashboard daily for the first two weeks. Look at cost per lead, lead volume, and lead quality. If cost per lead spikes, the Target CPA may need adjustment. If lead volume drops, the daily budget may be too low for the automated bidding algorithm to compete effectively.
How this connects to AI visibility
The LSA migration is a Google Ads change, but it connects to AI visibility in a specific way. Local Services Ads are where trades businesses appear at the top of Google search. AI answer engines like ChatGPT and Perplexity pull local business data from search indexes. When a business appears at the top of search through paid ads, its entity signals are stronger across the index.
The businesses that maintain their top-of-search presence through the PMax migration keep their visibility advantage. The businesses that lose leads because they did not prepare, and drop out of the top spots, lose both paid and organic visibility at the same time.
For the full picture on how AI engines pick local businesses, see how AI recommends local businesses. For the foundational listing that ChatGPT uses, see Bing Places for plumbers.
FAQ
When does the Google LSA migration happen?
Google began phase 1 of the Local Services Ads migration to Performance Max in August 2026 for select home and storefront service advertisers in the United States. The nine trades in phase 1 are plumbing, HVAC, electrical, appliance repair, house cleaning, lawn care, roofing, pest control, and moving. Google sends a 14-day notification before each account migrates.
Do I still pay per lead after the migration?
Yes. Performance Max pay-per-lead campaigns still charge per lead, not per click. The billing model has not changed. The average cost per lead across trades is $53, according to SearchLight Digital's analysis of 888 contractor accounts.
Will my Google Screened badge carry over?
Yes. The Google Screened or Google Guaranteed badge, license verification, and background check status all carry over to the new Performance Max pay-per-lead campaigns.
What is the biggest risk of the migration?
The biggest risk is for multi-service trades businesses that do not split their campaigns before migration. With one campaign-level Target CPA, the algorithm may optimize toward cheaper leads and under-deliver on higher-revenue services. Set up separate campaigns per service at g.co/localservices before the migration date.
Does this affect my AI visibility?
Indirectly, yes. Businesses that maintain their top-of-search presence through the migration keep stronger entity signals across search indexes. Businesses that drop out of top spots lose both paid and organic visibility simultaneously. For more on how AI engines pick local businesses, see how AI recommends local businesses.
Run your free AI visibility audit to check whether ChatGPT, Gemini, and Perplexity can find your trades business. The audit checks 12 signals across three AI platforms and flags exactly what to fix.