Google is preparing to transition Local Services Ads (LSA) into the main Google Ads platform, bringing campaign management, lead tracking and reporting into one central system.
The move will begin with a limited rollout for selected US advertisers in August 2026, before expanding gradually to more accounts throughout 2027.
While the change aims to simplify campaign management, it will also introduce several updates to bidding options, reporting tools and how advertisers manage their accounts.
How Local Services Ads Will Change
Under the new system, Local Services Ads will become part of Performance Max campaigns designed around pay-per-lead objectives.
Despite being managed through Performance Max, the campaigns will continue to operate similarly to existing Local Services Ads. They will remain keyword-free and will continue appearing only across Google Search and Google Maps.
The payment model will also remain unchanged. Businesses will still pay for genuine leads, such as phone calls, messages and bookings, rather than paying for clicks.
Once migration is complete, advertisers will manage their campaigns and handle customer enquiries directly through Google Ads. The current standalone Local Services Ads dashboard will no longer be available.
Google will begin moving a small number of US accounts in August 2026, with additional advertisers being transferred in phases through 2027.
Changes to Campaign Management
The migration will introduce several adjustments to how advertisers manage budgets, bidding strategies, reporting and business information.
One of the biggest changes is that advertisers will move from managing an average weekly budget to setting an average daily budget.
Manual bidding options will also be removed. Advertisers who currently use maximum cost-per-lead settings will instead rely on Google’s automated bidding system.
Another significant change affects Target CPA settings. Currently, businesses can set different cost-per-lead targets for individual service categories. After migration, Google will calculate a single campaign-level Target CPA across all services within the campaign.
Businesses offering multiple services may need to reconsider their campaign structure. For example, a company providing both plumbing and heating services may previously have used separate cost targets for each service. After migration, Google will use one combined target unless advertisers create separate campaigns.
Should Businesses Create Separate Campaigns?
Creating separate campaigns could provide greater control over bidding and budgeting, particularly for businesses where services have very different lead costs.
However, splitting campaigns can also reduce the amount of conversion data available to Google’s systems. Smaller advertisers with fewer leads may benefit from keeping services together, allowing Google to use stronger data signals when optimising campaigns.
Before making changes, businesses should review factors such as:
- Lead volume by service
- Cost per acquisition
- Conversion rates
- Customer value
- Overall campaign performance
The right approach will depend on the size of the business and how different services perform.
Reporting and Historical Data Changes
One important consideration is that historical Local Services Ads reports will not transfer into Google Ads.
While lead information will carry over, previous performance reports will not be moved. Advertisers will lose access to the existing Local Services Ads dashboard once migration is complete.
Businesses and agencies should download any important historical reports before their account is migrated. This will be particularly useful for year-on-year comparisons, client reporting and future performance analysis.
What Advertisers Should Do Before Migration
Google says account administrators will receive advance notifications before their campaigns are moved. Advertisers will receive an initial notice 14 days before migration, followed by another reminder one week later.
Before and after the transition, businesses should review key campaign settings, including:
- Daily budgets
- Target CPA settings
- Service categories
- Locations
- Ad schedules
- Lead contact details
- Images and callouts
Business information such as company names, addresses and opening hours will automatically sync from Google Business Profile.
Google has warned that major changes to business details may trigger an additional verification process, which could temporarily pause campaigns.
More Changes Coming for Local Services Advertisers
Some existing features will also be removed. For example, Google will no longer support BBB callouts and recommends advertisers use alternative callout options instead.
Lead management will also move into Google Ads, replacing the existing Local Services Ads inbox with the new Lead Manager tool.
What Happens Next?
Google will initially test the migration with a smaller group of advertisers across industries such as home services, education, wellness and pet care.
The company will then expand the rollout based on early feedback and performance results before moving additional accounts.
While the transition should create a more unified advertising experience, businesses will need to monitor how the changes affect campaign performance — particularly the move towards campaign-level Target CPA bidding.
As more advertisers complete the migration, further insights will emerge on how the new system impacts lead costs, campaign optimisation and overall results.
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