Google has quietly updated how it prices message leads in its Local Service Ads (LSAs). Until recently, message leads were clearly priced at 50% of the cost of phone call leads. But now, according to Google’s official help page, “Message leads are typically priced lower than the corresponding phone lead price, although that’s not always the case.”
Source: Google Help
This shift was first spotted by Anthony Higman, who shared his concerns on LinkedIn. He criticized the move, saying it introduces even more “black box” elements into Google’s pricing model. Previously, the 50% rule made it simple for advertisers to understand costs and make decisions. Now, he says, pricing lacks transparency and raises many questions about how Google is determining lead value.
“There is no way to determine what the cost of a message lead is now,” Higman said. “Only an average is shown, and that’s just a ruse. Proceed with caution.”
He also expressed concern that Google is pushing more users to message multiple businesses at once, increasing competition while making it harder to understand what advertisers are paying for.
For advertisers with smaller budgets, Higman recommends turning off message leads for now, until there’s more clarity. While message leads can still provide value, the lack of transparency and growing complexity might not be worth the risk for everyone.
