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Google Is Moving Local Services Ads Into Performance Max Campaigns

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Google Is Moving Local Services Ads Into Performance Max

Google is making a major change to the way businesses manage Local Services Ads.

Over the coming months, existing Local Services Ads campaigns will move from the separate LSA dashboard into the main Google Ads platform. These campaigns will become a specialised type of Performance Max campaign built around pay-per-lead goals.

This does not mean Local Services Ads are disappearing from Google Search or Google Maps. Instead, Google is changing the platform businesses use to create, manage and monitor these campaigns.

For local businesses, agencies and advertisers, this update could make campaign management easier. However, it also introduces changes to bidding, reporting, budgets and overall control.

Let us understand what is changing, what is staying the same and how businesses should prepare.

What Is Happening to Google Local Services Ads?

Google currently provides a separate Local Services Ads dashboard where businesses can manage leads, budgets, service areas and ad settings.

Google Is Moving Local Services Ads Into Performance Max Campaigns

Under the new system, Google will gradually close access to this separate dashboard and move Local Services Ads campaigns into Google Ads.

The migrated campaigns will appear as Performance Max campaigns with pay-per-lead goals. However, they will not work exactly like regular Performance Max campaigns.

Businesses will continue paying for qualified leads, such as phone calls, messages and bookings, instead of paying for every ad click.

Therefore, this is mainly a platform migration rather than the complete removal of Local Services Ads.

Are Local Services Ads Being Removed?

Local Services Ads are not being removed from Google Search or Google Maps.

According to Google, the ads will continue appearing in the same local advertising positions. Their focus on connecting customers with nearby service providers will also remain unchanged.

The biggest difference is that advertisers will manage these ads through Google Ads instead of the older Local Services Ads platform.

In simple words, the ad format remains, but the control centre changes.

Why Is Google Making This Change?

Managing different advertising products across separate platforms can be confusing.

A business might currently use Google Ads for search campaigns, Performance Max campaigns and display advertising, while using another dashboard for Local Services Ads.

By bringing Local Services Ads into Google Ads, Google is creating a more unified advertising experience.

Advertisers will be able to manage budgets, targeting settings, leads and campaign performance from one platform.

This may also increase the adoption of Local Services Ads because advertisers who already use Google Ads will not need to regularly switch between different dashboards.

What Will Stay the Same?

Several important features of Local Services Ads will remain unchanged.

Businesses Will Still Pay Per Lead

Advertisers will continue paying for valid leads instead of clicks.

These leads may include:

  • Phone calls
  • Messages
  • Booking requests
  • Other qualified customer enquiries

This remains different from most standard Google Ads campaigns, where advertisers generally pay whenever someone clicks an ad.

Ads Will Still Appear on Search and Maps

Campaigns with pay-per-lead goals will continue appearing only on Google Search and Google Maps.

They will not automatically expand across YouTube, Gmail or the Google Display Network like traditional Performance Max campaigns.

Campaigns Will Remain Keywordless

Businesses will not need to create traditional keyword lists.

Google will continue using service categories, locations, business information and campaign settings to decide when an ad should appear.

Verification Will Carry Over

Businesses that have already completed verification will keep their verified status after migration.

The Google Verified badge will also transfer automatically for eligible advertisers.

What Will Change After the Migration?

Although the main advertising model remains the same, several management features will change.

Local Services Ads Will Move Into Google Ads

Businesses will manage campaigns through the Google Ads dashboard.

Advertisers will be able to:

  • Review campaign performance
  • Adjust targeting
  • Manage budgets
  • Pause or enable campaigns
  • View customer leads
  • Reply to messages
  • Update ad assets

Once an account has migrated, logging into the old Local Services Ads dashboard will redirect the advertiser to Google Ads.

Manual Bidding Will Be Removed

One of the biggest changes is the removal of manual bidding.

Businesses will no longer be able to set a maximum cost per lead manually inside the migrated campaigns.

Google is also removing industry-level Target CPA settings. If a campaign contains multiple service categories, Google may calculate one campaign-level Target CPA for all categories.

For example, a company offering both plumbing and HVAC services may previously have used different bidding targets for each service.

After migration, the business may need to create separate campaigns to maintain different bidding strategies.

This change may simplify campaign management for beginners. However, experienced advertisers may feel they are losing useful controls.

Weekly Budgets Will Become Daily Budgets

Local Services Ads commonly use weekly budgets.

After migration, Google will divide the average weekly budget by seven and convert it into a daily average budget.

Monthly spending will still be limited based on the daily budget multiplied by 30.4. Daily spending may rise or fall depending on customer demand, but Google states that the monthly charging limit will remain controlled.

Businesses should carefully review the new daily budget after migration to make sure it matches their advertising goals.

Historical Performance Reports Will Not Transfer

This is one of the most important points for advertisers.

Previous campaign-level performance reports will not move into the new Google Ads campaign.

Historical details such as impressions, spending, leads and older campaign performance may no longer be available after the migration.

Therefore, businesses should download their reports before the migration date.

Important data to save may include:

  • Total leads
  • Average cost per lead
  • Weekly spending
  • Monthly spending
  • Lead quality
  • Lead types
  • Service category performance
  • Location performance

Past customer lead information, including contact details, message history and older call recordings, is expected to transfer into the new Google Ads Lead Manager.

Google Business Profile Will Play an Important Role

The new campaigns will continue using information from the advertiser’s Google Business Profile.

Google Ads will use GBP details to pre-fill important campaign information, including:

  • Business name
  • Address
  • Phone number
  • Business hours
  • Photos
  • Service areas

Core business information will sync from Google Business Profile to Google Ads.

This means businesses should make sure their Google Business Profile contains correct and updated information before migration.

Changes to important details, such as the business name, address or primary category, may trigger a verification review. During this review, the campaign could temporarily pause for around 24 to 48 hours.

Therefore, businesses should avoid making unnecessary major GBP changes during important advertising periods.

When Will the Migration Begin?

Google plans to complete the migration in phases.

The first phase is scheduled to begin in August 2026 for selected home and storefront service advertisers in the United States.

The first categories may include:

  • Plumbing
  • HVAC
  • Electrical services
  • Appliance repair
  • House cleaning
  • Lawn care
  • Roofing
  • Pest control
  • Moving services

The migration will expand to more advertisers later in 2026. Non-US accounts and remaining categories are expected to transition during 2027.

Google says account administrators will receive an email approximately 14 days before migration. A warning will also appear inside the existing Local Services Ads dashboard.

What Happens on Migration Day?

Google will automatically transfer most campaign settings.

These may include:

  • Target locations
  • Service types
  • Business categories
  • Budget limits
  • Ad schedules
  • Business photos

Advertisers should not need to rebuild their campaigns from the beginning. However, businesses should review every transferred setting after migration.

Automatic migrations can sometimes produce unexpected settings, especially when campaigns contain several categories, service locations or bidding configurations.

Google also warns that campaign performance may take up to two weeks to stabilise after migration.

Where Will Businesses Manage Leads?

Customer leads will move into the Lead Manager section of Google Ads. Advertisers will be able to find leads by opening the Goals section, selecting Conversions and then choosing Leads.

The Lead Manager will display information such as:

  • Lead type
  • Charged status
  • Phone calls
  • Messages
  • Customer details
  • Lead feedback options

Businesses will also be able to download leads and transfer them into their CRM. Message leads can be opened and answered directly from the Google Ads platform.

The centralised system may make it easier for advertisers to connect lead management with other Google Ads reporting.

However, some users may initially find the Google Ads navigation more complicated than the simpler LSA inbox.

Possible Benefits of the Change

One Advertising Platform

Businesses will no longer need to switch between the Google Ads dashboard and the Local Services Ads platform.

Easier Campaign Comparison

Advertisers may find it easier to compare local lead campaigns with search campaigns and other advertising activity.

Better Centralised Reporting

Google Ads provides more reporting tools than the older LSA dashboard.

Although historical reports will not transfer, future campaign data may become easier to analyse.

Simpler Account Access

Agencies managing several advertisers may find it easier to organise campaigns through their existing Google Ads manager accounts.

More Asset Management Options

Advertisers will be able to manage photos and business callouts through the Google Ads Assets section.

Google allows businesses to upload additional photos and manage callouts that highlight details such as specialties, hours and payment methods.

Possible Disadvantages and Concerns

Less Control Over Bidding

The removal of manual bidding means advertisers will have fewer direct controls over how much they pay for leads.

Greater Dependence on Automation

Performance Max campaigns rely heavily on Google’s automated systems.

As a result, advertisers may have limited visibility into how Google makes some targeting and bidding decisions.

More Complicated Navigation

The Google Ads platform contains many menus, settings and reporting sections.

Small business owners who managed Local Services Ads themselves may need time to understand the new interface.

Historical Data Loss

Businesses that do not download their old reports may lose access to valuable campaign performance information.

Temporary Performance Changes

Campaign results may change during the migration and learning period.

Businesses should avoid making too many adjustments immediately after migration unless a major setting is clearly incorrect.

How Businesses Should Prepare

Businesses should begin preparing before receiving the migration notice.

Download Historical Reports

Export all important Local Services Ads reports and save them in a secure location.

Review Google Business Profile Information

Check that the business name, address, phone number, categories and hours are correct.

Confirm the Account Administrator

Make sure the correct person is listed as the account administrator so migration emails are not missed.

Review Current Bidding Settings

Record existing maximum cost-per-lead and Target CPA settings before they are removed.

Check Service Categories

Businesses offering several services should decide if they need separate campaigns for each category after migration.

Save Lead Information

Although customer lead history should transfer, businesses may still want to download important lead records as an extra precaution.

Review Campaign Settings After Migration

Check locations, services, business categories, schedules, photos and budgets immediately after the transfer.

Monitor Results for Two Weeks

Track lead volume, cost per lead and lead quality during the adjustment period.

What Does This Mean for Local Businesses?

This change shows that Google is continuing to combine more advertising products inside the main Google Ads platform.

For beginners, managing everything in one place may feel easier after the initial learning period. For experienced advertisers, the loss of manual bidding and category-level controls may be frustrating.

The success of this migration will depend on how accurately Google transfers campaign settings and how much useful reporting it provides after the move.

Businesses should treat the migration as more than a simple dashboard update. It affects budgeting, bidding, reporting, lead management and Google Business Profile integration.

Final Thoughts

Google is not completely shutting down Local Services Ads.

Instead, it is moving the management experience into specialised Performance Max campaigns with pay-per-lead goals.

The pay-per-lead model, local ad placements and verification system will continue. However, businesses will manage campaigns through Google Ads, use daily budgets and depend more heavily on automated bidding.

The most urgent action is to download historical reports before migration because previous campaign performance data will not carry over.

Businesses should also review their Google Business Profile, confirm account access and carefully monitor campaign results after the transfer.

This change may create a cleaner and more connected advertising system. At the same time, it gives advertisers fewer manual bidding options and more dependence on Google’s automation.

Preparing early will help local businesses avoid data loss, budget surprises and unnecessary campaign disruption.