Google is beginning a gradual move of Local Services Ads into the Google Ads platform, potentially making these campaigns easier to manage, measure, and scale.
For healthcare advertisers, the opportunity is promising. But there’s one major question to answer first: will the lead collection process meet HIPAA requirements?
Until we can verify that, we’ll be watching rather than rushing in.
What’s changing with Local Services Ads?
Local Services Ads (LSAs) have traditionally operated separately from Google Ads. They help local service providers generate leads through prominent placements on Google Search and Maps, using pay-per-lead bidding rather than traditional keyword targeting.
They are popular among local plumbers, lawyers, dentists, and a full range of other service providers, including healthcare.
But the whole infrastructure being separate and distinct from Google Ads proper was an inconvenience, not least because scaling such ads was not easy. Also, the lead collection was not at the level of compliance that we aimed for on behalf of our clients.
Beginning in August, Google plans to start bringing that functionality into Google Ads through a new campaign type called Performance Max for pay-per-lead goals. The transition will happen gradually and is expected to continue into 2027.
This campaign type will be a virtual reproduction of the functionality in the main LSA platform and retain many familiar LSA features:
- Ads will appear on Search and Maps
- Targeting will remain keywordless
- Advertisers will pay for leads rather than clicks
- Google Business Profile information will sync automatically
- Leads will be collected and managed within Google Ads
Existing LSA campaign data will not transfer into Google Ads. Advertisers should also expect changes to bidding and campaign controls, including the removal of manual maximum cost-per-lead bidding in favor of campaign-level Target CPA.
The healthcare opportunity comes with a caveat
Moving LSAs into Google Ads could solve one of the format’s biggest limitations: its separation from the rest of an advertiser’s paid search activity.
The integration should make it easier to view budgets, manage campaigns, evaluate lead quality, and report on performance in one place. It may also make Local Services Ads more practical for organizations managing multiple locations or looking to scale their local advertising.
These ads can also appear prominently within local search results, giving advertisers another way to reach people actively looking for nearby services.
For hospitals, health systems, physician groups, and other healthcare organizations, the potential value is clear. Local Services Ads could provide another route to high-intent consumers while simplifying campaign management and reporting.
The LSA development is a continuation of numerous consolidations Google has made in a range of platforms, and is long-awaited, frankly. But easier lead collection only matters if that collection is handled appropriately.
Before recommending or launching this campaign type for healthcare clients, we need to confirm the way Google captures, stores, and transfers lead information is HIPAA compliant.
If it is, it will add a string to our bow and could become a valuable addition to the healthcare paid media mix. Until then, we will continue evaluating the rollout and share what we learn as more details become available.
