Critical Google Local Services Ads Ranking Changes Affecting Your Business

Why Your Local Services Ads Stopped Working (And What to Do About It)

If your Local Services Ads have been bringing in fewer calls lately, you’re not imagining it. Google quietly removed proximity as a primary ranking factor from the LSA algorithm months ago, and home service businesses are now feeling the full impact.

Here’s what’s happening:
You can lose a Local Services Ad lead even when the customer is in your neighborhood.
A competitor 15, 20, or even 30 miles away can outrank you if their reviews are stronger or they respond faster.

Because the change rolled out gradually, the drop in call volume might feel sudden. But Google changed the rules months ago, and the impact is now hitting plumbing, HVAC, electrical, roofing, and other home service businesses at full force.

Understanding Google Local Services Ads Ranking Changes

Google stopped prioritizing “closest provider wins” earlier this year. At first, most businesses didn’t notice because markets hadn’t adjusted yet.

But now companies with higher review scores, faster review velocity, and quicker response times are appearing in more searches than ever—even when they’re far outside what used to be their typical service area.

If you’ve relied on being the closest option to win jobs, that built-in advantage is gone. And your lead volume is probably showing it.

Why You’re Seeing Fewer LSA Calls Now

Google essentially expanded the competitive playing field. Here’s what that means for your business:

• Many more contractors now appear for the same customer searches
• The same pool of leads gets divided among more competitors
• Even well-maintained LSA profiles can see 20–30% drops in calls simply from losing location-based advantages

According to the latest trends in local search, this shift represents Google’s broader move toward trust-based rankings rather than proximity-based results.

Four Factors Driving Your Local Services Ads Ranking Now

If you want to stay visible and competitive, Google is now weighing these four factors most heavily:

1. Review score and how often you get new reviews

Both the star rating and frequency of fresh reviews matter significantly in the new algorithm.

2. How fast you respond to calls and messages

According to Google’s consumer research, response time directly impacts whether customers trust and choose a business. Google pays attention and favors quicker response times.

3. Accurate service areas and specific service categories

Broad, generic settings hurt your rankings. Being specific about the services you offer and where you offer them helps you win.

4. Call quality and customer interactions

Google is evaluating actual phone conversations more closely to assess the quality of service you provide.

Local Services Ads aren’t functioning like a purely “local” platform anymore. They’re operating as a trust-driven marketplace, and marketplaces reward businesses that appear most reliable—not just those that are closest.

What You Should Do Right Now

Based on what’s working for home service businesses adapting to these Google Local Services Ads ranking changes, here are the most effective actions you can take:

Refine your service area strategically

If you’re competing 25+ miles from your location but those jobs aren’t profitable, consider tightening your radius. Focus on the areas where you can provide the best service and maintain healthy margins.

Make review collection a daily priority.

This isn’t something to get to eventually.
Review volume and velocity are now among the strongest ranking signals.
The Better Business Bureau reports that 85% of consumers trust online reviews as much as personal recommendations, so this benefits both your LSA ranking and your conversion rate.

Speed up your response times.

Missing calls or taking hours to respond will damage your rankings faster than almost anything else. Set up systems to ensure you or your team responds within minutes, not hours.
*Pro Tip* Today, many AI-driven receptionists and messaging apps are available and can respond to inquiries even when you’re not available.

Get specific with your service categories.

Don’t just select “plumber” or “HVAC”—dial in every specific service you offer. Water heater repair, drain cleaning, AC maintenance—the more precise you are, the better you’ll rank for relevant searches.

The Bottom Line

These Google Local Services Ads ranking changes aren’t going away. The businesses that adapt quickly—with strong review systems, fast response protocols, and properly configured profiles—will capture the leads that used to go to whoever was closest.

If your call volume has dropped and you’re not sure where to start, you’re not alone.
Many home service business owners are navigating these changes for the first time. Understanding how the new algorithm works is the first step toward recovering and exceeding your previous lead volume.

Need help optimizing your Local Services Ads for these new ranking factors?
Our Local Services Ads management service specializes in helping home service businesses adapt to Google’s evolving platform. We also offer comprehensive review management solutions to build the review velocity that’s now critical for LSA success.

Schedule your free consultation today!