August 25, 2026
10minsLocal Service Ads have been a staple for many years within the home service industry.
Recently, Google informed advertisers it will be widening the criteria for chargeable calls generated through Local Service Ads. These changes will be effective as of October 1, 2026.
Two Massive Updates To Local Service Ads
The main two updates: certain missed calls and subsequent calls will now be chargeable.
The first concern for many home service providers will be the adjustment to missed calls. Under the revised policy, missed calls during business hours where the caller stays on the line longer than 20 seconds will now be considered a valid, chargeable lead.
We're not entirely clear on when this 20-second timer begins in every case. However, Google has stated that for businesses with call-routing requirements, where a lead is prompted to press a certain key before being connected, the 20 seconds begins after the lead presses that key. If the lead never presses a key during call-routing, the advertiser will not be charged.
That makes call-routing worth a second look for any business that isn't already using it. It's currently the clearest safeguard Google has spelled out against being billed for a call nobody actually took.
The second change extends to subsequent calls. If an initial call doesn't qualify as a charged lead, any follow-up calls between the business and that same caller that meet Google's valid-lead criteria will now be charged as well.
The policy email shares no information on the scope of these changes across service areas, or whether the existing process to appeal invalid leads will be revised alongside the new criteria.
Google’s Reason For This Policy Update
Google's stated reasoning frames this as an effort to match consumer expectations rather than platform unit economics. The company says consumers expect Local Service Ads to connect them with a local service professional for their immediate needs, and that the update is meant to reward "businesses that provide excellent responsiveness."
Larger Shift Within Google Local Service Ads
This billing change is landing inside a larger shift already underway. Local Service Ads are being folded into Google Ads under the Performance Max campaign type, a migration that began in August 2026, starting with select home service categories including plumbing, HVAC, electrical, roofing, pest control, and moving.
Google has said the rollout will continue in phases through 2027, with advertisers receiving a 14-day advance notice before their specific account migrates. Historical LSA performance reports will not carry over automatically, so anyone currently running LSA should plan to export their existing data before their migration date arrives.
What This Means For Your Home Service Business
Taken together, these changes mean home service owners and operators have real operational questions to work through before October 1.
Does call-routing make sense for your business as a safeguard against missed-call charges? What's the revised cost of a missed call during business hours, now that it's no longer free? What’s your team's response speed?
We'll be keeping a close eye on this as more detail comes out, and will follow up here as Google clarifies the open questions that still remain unanswered. If you are ready to take your Google Ads to the next level, connect with Blank Museum today!
Austin Werner
Founder of Blank MuseumAustin is a Sacramento-based founder with nearly a decade of experience across creative, digital marketing, and advertising. He's now building Blank Museum to help home service businesses across the US grow.
