Google Local Service Ads Charging More For Message Leads

07/28/25
Source: Search Engine Roundtable by barry@rustybrick.com (Barry Schwartz). Read the original article

TL;DR Summary of Google Lowers Transparency on Message Lead Pricing in Local Service Ads

Google has updated its pricing model for message leads in Local Service Ads, removing the clear 50% pricing relative to phone leads and replacing it with a variable, less transparent pricing system. This change has caused concern among advertisers due to the lack of pricing clarity and potential budget management challenges. Experts warn that the new model makes it difficult to determine exact costs and suggests caution, especially for advertisers with smaller budgets.

Optimixed’s Overview: Navigating Google’s New Pricing Complexity for Local Service Message Leads

What Has Changed?

Google previously charged message leads at a straightforward rate of 50% of the cost of corresponding phone leads within Google Local Service Ads (LSA). Now, the pricing is described as “typically lower than the corresponding phone lead price,” but this is no longer fixed and can vary.

Why This Matters to Advertisers

  • Reduced Transparency: Advertisers can no longer easily predict or verify the cost of message leads, complicating budget planning and campaign optimization.
  • Black Box Pricing: Industry professionals have criticized the change as making the pricing system more opaque and harder to manage.
  • Impact on Strategy: With Google encouraging messages to be sent to multiple businesses simultaneously, advertisers might face increased competition and unclear lead value.

Expert Recommendations

Given these changes, experts recommend:

  • Carefully monitoring message lead performance and costs.
  • Considering disabling message leads if operating on a smaller or strict budget.
  • Maintaining close communication with Google support or account managers to better understand ongoing pricing dynamics.

Overall, while message leads can still be valuable, the new pricing approach requires advertisers to exercise caution and adapt their Local Service Ads strategies accordingly.