Google has announced that throughout this year, the local service ads platform will be integrated into the main Google Ads platform. To support this transition, a new campaign type called Performance Max tailored specifically for pay-per-lead objectives is being introduced.
Here’s the timeline for the migration:
- August 2026: The first phase begins, targeting select home and storefront service providers across the U.S., including plumbing, HVAC, electrical, appliance repair, house cleaning, lawn care, roofing, pest control, and moving services.
- Late 2026: The migration expands to cover a broader range of advertisers, including service-area businesses without physical storefronts and accounts with custom bidding or booking setups.
- 2027: Accounts outside the U.S. and all remaining business categories will transition to Google Ads.
By the end of 2026, most local service ads should be migrated into Google Ads, with clear documentation outlining what remains the same and what changes.
What stays the same:
- The pay-per-lead model continues, meaning advertisers pay only for valid leads, such as phone calls and messages, not for ad clicks.
- The focus on attracting high-intent customer interactions remains unchanged.
- Ads will still appear only on Google Search and Google Maps in the same placements as previous Local Services Ads.
- Campaigns remain keywordless, targeting specific service categories and areas based on user intent.
What changes:
- Management will become more centralized, allowing adjustments to budgets, targeting, and responses to customer inquiries directly within Google Ads instead of a separate Local Services dashboard. Historical performance data will not transfer automatically, so backup strategies are recommended.
- The bidding system is evolving; manual bidding and industry-specific Target CPA options will be deprecated. Advertisers are encouraged to familiarize themselves with new bidding and budget configurations.
- Greater control over campaigns is now available, with the ability to update contact details like phone numbers instantly within Google Ads. Business information such as business name and address should be updated on Google Business Profile, which will sync automatically but may require verification for large changes—this process can take 24 to 48 hours.
- Google Ads will auto-fill certain campaign details from the business profile to streamline setup. However, significant updates, such as changes to business name or address, will trigger verification and temporary pauses.
- Support for BBB callouts will be discontinued. To emphasize business features, advertisers should select other structured callouts like business hours, specialties, or accepted payment methods in their asset setup.
Regarding bidding adjustments:
- Budgets will now be calculated on a daily basis, based on your average weekly spend divided by seven, with monthly spend capped at this daily budget multiplied by roughly 30.4 days.
- Manual bidding options, including maximum cost-per-lead setups, will be phased out.
- Vertical-level Target CPA settings will no longer be supported; instead, a unified campaign-level target will be applied across all business categories within a campaign. To manage different bidding strategies, separate campaigns should be created for each vertical.
Business owners will receive notices approximately two weeks before their accounts are migrated, ensuring they’re prepared for the upcoming changes.
Insights from industry experts highlight that this shift consolidates earlier ad formats into a more unified, AI-powered campaign setup. Observers note that Local Service Ads were essentially the precursor to Performance Max campaigns, making this integration a logical evolution in local advertising strategies.