# Google Local Ads: Complete Guide 2026 | Enrich Labs > Learn how Google Local Ads work in 2026: Search, Maps, and Waze placements, CPC vs pay-per-lead Local Services Ads, GBP location assets, and the Performance Max migration. _Source: https://www.enrichlabs.ai/blog/google-local-ads-complete-guide-2026_ --- #TLDR Google Local Ads put a storefront or service-area business in front of people already searching nearby on Search, Maps, and (in the US) Waze. Google sources hours, ratings, photos, and address from a linked [Google Business Profile](https://support.google.com/google-ads/answer/3246303?hl=en). You pay CPC on most Search and Performance Max local formats. Maps logo pins in store-goal Performance Max bill CPM ([Google Ads Help](https://support.google.com/google-ads/answer/3246303?hl=en)). Local Services Ads are a different product. They stay keywordless, sit on Search and Maps only, and charge for valid leads. Google is migrating those campaigns into Google Ads as Performance Max with pay-per-lead goals starting August 2026 in the US ([Google Ads Help](https://support.google.com/google-ads/answer/17213585?hl=en); [Search Engine Land](https://searchengineland.com/local-services-ads-come-to-google-ads-via-performance-max-482692)). WordStream's 2026 study (13,000+ campaigns, April 2025 to March 2026) puts average Search CPC at **$5.42** and average cost per lead at **$66.69**. Home & Home Improvement sits at $8.33 CPC and $90.92 CPL ([WordStream](https://www.wordstream.com/blog/2026-google-ads-benchmarks)). If you run a local shop, clinic, or trade, you need a clean GBP, location assets in Google Ads, and conversion goals set to directions and calls. Helena can run the Search side of that stack so bids and RSAs do not sit untouched for weeks. See our [Local Services Ads: Complete Guide 2026](/blog/local-services-ads-complete-guide-2026) and [Google Local Service Ads: Complete Guide 2026](/blog/google-local-service-ads-complete-guide-2026) for the pay-per-lead product. ## Table of Contents - [What are Google Local Ads?](#what-are-google-local-ads) - [How Google Local Ads work](#how-google-local-ads-work) - [Google Local Ads vs Local Services Ads vs Search](#google-local-ads-vs-local-services-ads-vs-search) - [Where Local Ads show](#where-local-ads-show) - [What Google Local Ads cost](#what-google-local-ads-cost) - [Setup: GBP, location assets, conversions](#setup-gbp-location-assets-conversions) - [Campaign types and bidding](#campaign-types-and-bidding) - [The 2026 LSA to Performance Max migration](#the-2026-lsa-to-performance-max-migration) - [Optimization checklist](#optimization-checklist) - [When an AI marketing agent is the better operator](#when-an-ai-marketing-agent-is-the-better-operator) - [FAQ](#faq) ## What are Google Local Ads? Google defines Local Ads as ads for businesses with a physical location or a service area. The goal is store visits, store sales, local leads (calls and directions), or website traffic. The ad unit can show star rating, address, phone, store photos, and hours, usually pulled from a linked Google Business Profile ([About Local Ads](https://support.google.com/google-ads/answer/3246303?hl=en)). You are not eligible until location assets are linked at the account or campaign level. Google is explicit about that prerequisite ([Google Ads Help](https://support.google.com/google-ads/answer/3246303?hl=en)). People still use "Google local ads" for three different products: - **Local Ads on Search / Performance Max:** CPC (or CPM on Maps pins for store-goal PMax). Needs location assets. Shows richer local formats. - **Local Services Ads (LSA / Google Guaranteed or Screened):** Pay per valid lead. Keywordless. Search and Maps only. Now moving into Google Ads as PMax with pay-per-lead goals ([migration help](https://support.google.com/google-ads/answer/17213585?hl=en)). - **Standard Search with location targeting:** Classic RSAs aimed at "plumber near me" queries. You pick keywords. You pay CPC. No local pin format unless location assets are on. Retailers with in-store stock add a fourth layer: Local Inventory Ads and free local listings through Merchant Center plus GBP ([Implement local inventory ads](https://support.google.com/google-ads/answer/16241616?hl=en)). Feed setup still assumes a Merchant Center account, a Business Profile, and inventory that matches store codes ([Content API for Shopping](https://developers.google.com/shopping-content/guides/how-tos/lia/get-started)). If you sell online only and have no service area, Local Ads are the wrong product. Use standard Search, Shopping, or PMax. Our [best AI for Google Ads 2026](/blog/best-ai-for-google-ads-2026) ranking covers that stack. For a broader paid-plus-organic view, start with [online marketing for small business](/blog/online-marketing-for-small-business) and [online marketing for small businesses](/blog/online-marketing-for-small-businesses-complete-guide-2026). * * * ## How Google Local Ads work When someone searches for a nearby business on google.com, Maps, or Waze, Google can feature your location above other options. The ad promotes hours, address, images or video, reviews, and other assets so the user can call, get directions, or hit the website ([Google Ads Help](https://support.google.com/google-ads/answer/3246303?hl=en)). Linking GBP to Google Ads turns on location assets. Those assets feed the local formats. Google also auto-creates local-action conversion types once location assets are live: - **Get directions:** Biddable in Performance Max and Search. - **Clicks to call:** Biddable in Performance Max. - **Website visits:** Reporting only. - **Click-to-message:** Messaging extensions that open WhatsApp or text. Set directions and call actions to **Primary** in conversion goals if you want Smart Bidding to optimize for them. If they sit as secondary, Maximize Conversions will ignore them. That is the same conversion hygiene we cover in [marketing automation for small business](/blog/marketing-automation-for-small-business) and [what is A/B testing](/blog/what-is-ab-testing). Google charges one click even if the user taps more than one action on the same ad. Swipes on the media carousel do not bill ([Google Ads Help](https://support.google.com/google-ads/answer/3246303?hl=en)). Call tracking is a separate setup if you want those calls to count as conversions ([call tracking help](https://support.google.com/google-ads/answer/6095882)). Local Ads also inherit photos and 3D aerial views from GBP unless you opt out of merchant photos. Opting out can hurt format eligibility ([location assets](https://support.google.com/google-ads/answer/2404182)). Treat photo quality as part of the bid. Pair this with [social media for brand awareness](/blog/social-media-for-brand-awareness) only after the listing itself looks trustworthy. * * * ## Google Local Ads vs Local Services Ads vs Search Local Ads (Search / PMax) Local Services Ads Standard Search Who it is for Storefronts and service areas Licensed/home/professional services in eligible categories Any business with a landing page Targeting Locations + campaign settings; not keywordless Keywordless; categories + service area from GBP Keywords + geo Surfaces Search, Maps, Waze (US, store-goal PMax) Search and Maps only Search (and Search partners if you leave them on) Billing CPC; CPM on Maps logo pins for store-goal PMax Pay per valid lead (call, message, booking) CPC Trust badge Star rating from GBP Google Verified / Guaranteed or Screened None unless you add assets 2026 change Still a format, not a campaign type Migrating into Google Ads as PMax pay-per-lead ([SEL](https://searchengineland.com/local-services-ads-come-to-google-ads-via-performance-max-482692)) AI Max auto-upgrade pressure on Search Google's own small-business guide treats Google Ads and Local Services Ads as complementary, not substitutes ([Google for Small Business](https://business.google.com/us/resources/articles/small-business-marketing/)). Run both if the category is eligible. Use Search for queries LSA will never match (brand, competitor, high-intent research). Use LSA when you want the badge and a clean CPL. Use Local Ads formats when you care about directions and walk-ins. Deep dives: [Local Services Ads: Complete Guide 2026](/blog/local-services-ads-complete-guide-2026) and [Google Local Service Ads: Complete Guide 2026](/blog/google-local-service-ads-complete-guide-2026). For the product page language Google uses with advertisers, see [Reach Local Customers with Local Service Ads](https://business.google.com/us/ad-solutions/local-service-ads/). Do not collapse these into one "local campaign" in your own reporting. A $70 LSA lead and a $5 Search click are not the same unit. Track them the way we treat channel KPIs in [social media KPIs](/blog/social-media-kpis-complete-guide) and [social media ROI](/blog/social-media-roi-complete-guide): same dashboard, different denominators. * * * ## Where Local Ads show ### Search On google.com, Local Ads can appear as standalone units or sit inside organic local modules. Formats include text ads with location details, carousel ads with multiple images or locations, and collection ads that group similar local results. CTAs include Call, Directions, and Website. If the user opens "More places," sponsored listings can sit in that list, marked Sponsored ([Google Ads Help](https://support.google.com/google-ads/answer/3246303?hl=en)). Google picks the format from query, relevance, and context. You do not choose carousel vs collection by checkbox. ### Maps Ads can show as square pins on the map and inside Maps search results. Those two formats do not always fire together ([Show local ads on Google Maps](https://support.google.com/google-ads/answer/7040605)). ### Waze (US) Promoted-place pins along a driving route. Available only through Performance Max for store goals bidding to Store Visits, Store Sales, or Local Actions Directions ([About Local Ads](https://support.google.com/google-ads/answer/3246303?hl=en); [PMax for store goals](https://support.google.com/google-ads/answer/12971048)). This is why a dentist with one chair and a multi-location hardware chain should not copy the same campaign type. Waze and store-visit bidding need enough visit volume to train. A single-location trade should start with Search plus LSA. Pair paid local with [SEO services for small business](/blog/seo-services-for-small-business-2026) and [SEO marketing for small business](/blog/seo-marketing-for-small-business-2026-guide) so you are not buying every impression twice. Organic local still depends on reviews; BrightLocal's 2025 Local Consumer Review Survey is the current primary study on how people find and read those reviews ([BrightLocal](https://www.brightlocal.com/research/local-consumer-review-survey-2025/)). Retailers who want "in stock nearby" should also read Google's LIA implementation notes ([local inventory ads](https://support.google.com/google-ads/answer/16241616?hl=en)) and Merchant API LIA settings ([Merchant API](https://developers.google.com/merchant/api/guides/compatibility/local-inventory-ads-settings)).