Google Local Service Ads Message Leads New Value-Based Pricing

11/12/25
Source: Search Engine Roundtable by barry@rustybrick.com (Barry Schwartz). Read the original article

TL;DR Summary of Google Local Service Ads Introduces Value-Based Pricing for Message Leads

Google Local Service Ads now implement value-based pricing for message leads, replacing the previous flat 50% discount model. A new “Request multiple opinions” feature allows consumers to message multiple providers simultaneously, enhancing user experience. Advertisers will see better-aligned costs based on lead quality and consumer intent, with improved lead qualification to reduce spam and irrelevant messages.

Optimixed’s Overview: Enhanced Pricing and Features Revolutionize Google Local Service Ads Messaging Leads

Introduction to Changes in Google Local Service Ads

Google recently informed advertisers about significant updates to the messaging leads system within Local Service Ads (LSAs). The update introduces a value-based pricing model and a new feature called “Message Fanout”, aimed at improving both advertiser ROI and consumer experience.

Key Features and Pricing Adjustments

  • Request Multiple Opinions: Consumers can now message several providers at once, streamlining the process of gathering multiple quotes before making hiring decisions.
  • Value-Based Pricing: Instead of a flat 50% discount on message leads relative to call leads, pricing now reflects the estimated value of each lead. Google evaluates factors such as consumer intent, service type, and whether multiple businesses were contacted.
  • Increased Discounts for Fanout Leads: Leads where consumers contact multiple businesses may receive higher discounts, better aligning cost with lead quality.

Improved Lead Qualification

Google has enhanced its systems to more effectively filter out spammy or irrelevant message leads. This ensures advertisers pay only for meaningful, high-quality leads, saving time and budget.

Context and Industry Impact

While the “Message Fanout” concept has been informally in place for some time, this update formally integrates it with transparent pricing changes. Advertisers can now monitor their spending and lead volumes through the reporting dashboard, enabling more informed budget management.