Local Services Ads Partner Updates: Q2 2025

As part of our ongoing commitment to helping local businesses thrive through digital marketing, we want to keep you informed about important changes to Google’s Local Services Ads (LSAs). Q2 2025 brought several updates that require your attention—especially a critical Terms of Service change with a firm deadline.

Whether you manage your LSAs directly or rely on Local View for optimization, the following updates will impact how your ads perform, how you’re billed, and how leads are tracked.

Action Required: Accept the Updated LSA Terms of Service by July 22, 2025

Google has introduced new Terms of Service for all LSA advertisers. To continue running ads, you must accept the updated ToS by July 22, 2025.

Key ToS Changes:

Content Usage: Google may now use information from your LSA profile, customer conversations, and linked websites across other Google products.
Account Linking: You can now link your LSA account with other Google services (like Google Business Profile).
Eligibility Impact: Ads will be paused if the ToS is not accepted by the deadline.

If you manage your LSA via an MCC account (like Local View does for many clients), ToS can be accepted in bulk from the dashboard.

If you have legal questions about the changes, we recommend consulting a professional advisor.

Lead Quality, Messaging, and Pricing Enhancements

Google has also rolled out several improvements aimed at delivering higher-quality message leads and providing better transparency for advertisers.

1. Improved Message Lead Filtering

Google’s systems are now better at identifying and blocking spam or low-quality message leads before you’re charged—saving you time and ad dollars.

2. Multi-Pro Contacting

Customers can now message 2–4 service providers simultaneously, reflecting real-world consumer behavior and increasing competition.

3. Customer Intent Annotations

Incoming message leads now include labels like:

“This customer has requested a quote”
“This customer has also messaged other businesses”

This gives you better insight into urgency and competition at a glance.

Enhanced Reporting: See Spend by Lead Type

You’ll now see separate reporting for:

Phone Leads
Message Leads
Booking Leads

This level of visibility allows you to track average cost per lead type, evaluate which channel performs best, and adjust your budget accordingly.

Value-Based Pricing for Message Leads

Previously, message leads were billed at 50% the cost of a phone lead. Now, Google is moving to a value-based pricing model, where cost is tied to how likely a lead is to result in a booking.

More likely to book → smaller discount
Less likely to book → larger discount

This dynamic pricing is based on customer behavior patterns, such as:

Type of service requested
Number of providers contacted

(Future updates may include even more behavioral signals)

Developer Update: Google Ads API v19.1

For developers managing LSA data through the API (like our team at Local View), Google added:

A new LocalServicesLeadService for uploading ratings/feedback
A lead_feedback_submitted field to track if feedback has been shared
Enhanced visibility into Google’s credit decisions

This helps streamline automation and improve post-lead tracking.

What You Should Do Next

Accept the Updated Terms of Service
If you’re a Local View client, we’re handling this for you. If you manage your own LSA account, log in and check for the ToS prompt.
Evaluate Message Lead Performance
Check your reporting dashboard for trends. If you’re unsure how to interpret the new lead data, our team can help.
Review Ad Messaging & Response Strategy
With increased visibility into customer intent and multiple providers being contacted, timely and professional responses are more important than ever.

What You Should Do Next

At Local View, we specialize in optimizing Local Services Ads for maximum lead quality and ROI. Whether you’re new to LSAs or want to fine-tune your strategy for Q3 and beyond, we’re here to help.