Google Changes Local Services Ads: Proximity Is No Longer a Ranking Factor

Google has quietly rolled out a significant update to its Local Services Ads (LSAs) — and it could have a big impact on how your business shows up in search results. As of April 2025, proximity to the searcher is no longer a top-ranking factor in determining which LSAs appear at the top of the page.

This update shifts the spotlight from “who’s closest” to “who performs best.” Here’s what you need to know — and what to do next.

What’s Changed: Proximity Is Out

In previous versions of Local Services Ads, businesses located closest to the person searching were typically shown first. That meant that even if your company had better reviews and customer service, a competitor down the street could outrank you.

Google has now officially removed proximity from the primary ranking algorithm, making room for quality and relevance to take the lead.

What Now Influences Your LSA Ranking?

According to Google, here are the new top factors influencing how your Local Services Ads appear in search results:

1. Review Quality and Volume

The number of reviews you have — and your star rating — play a bigger role than ever before. Businesses with more 4.5+ star reviews will stand out.

2. Responsiveness to Leads

If you respond quickly to messages and calls from potential customers, your ad is more likely to rank well. Speed counts.

3. Scheduling and Booking Performance

Enabling Google’s booking features and maintaining consistent availability can improve your visibility in the LSA carousel.

4. Relevance of Services

LSAs now prioritize businesses that closely match the user’s search intent. So if someone searches for “emergency drain repair,” your listing needs to reflect that exact service.

Why Did Google Make This Update?

Google is continuously optimizing its local ad experience to improve user satisfaction. This shift to quality over distance reduces the likelihood of spammy or fake location listings dominating the top spots.

It also gives high-performing, legitimate businesses a better opportunity to compete — regardless of their physical proximity to the user.

What Should Your Business Do Now?

If you’re running Local Services Ads, here’s how to stay ahead of the curve:

Optimize Your Profile

Add detailed service categories
Update your hours of operation
Ensure your business info is accurate

Build a Strong Review Profile

Ask happy customers to leave reviews
Reply to all reviews — even the negative ones

Enable Messaging and Booking

Use Google’s LSA dashboard to turn on lead messaging
Set clear, consistent availability

Stay Responsive

Answer leads quickly, especially during business hours
Track missed calls and follow up ASAP

How Local View Can Help

At Local View, we help small businesses maximize their visibility across Google — and that includes setting up and optimizing Local Services Ads.

With this new change, now is the perfect time to review your LSA strategy. Whether you’re new to LSAs or want to improve performance under the new algorithm, our team is here to help.

Final Thoughts

This update is a big win for service-based businesses who focus on quality, responsiveness, and trust. While being nearby no longer guarantees a top spot, providing great service — and proving it online — will now truly set you apart.