Google made three big changes to Local Services Ads (LSA) in late August 2026, and they came at a surprising time. Google is in the middle of moving LSA into Google Ads, yet it just invested more in the product. New pre-badge ads let businesses collect leads before they finish verification. The list of eligible verticals got much bigger and more specific. And the rules for the Google Verified badge changed.
Each one matters for small businesses that buy leads from Google. Here is what changed and how to use it first.
What Are Pre-Badge Ads?
Until now, an LSA account only went live after you completed the full Google screening and earned the badge. That process takes weeks. During that time your business sat on the sidelines while badged competitors took every lead.
Pre-badge ads change that. Google now lets you receive LSA leads after you pass the preliminary checks, while you finish the remaining onboarding requirements. Your listing appears in search results, but Google places it below providers who completed everything and earned the badge.
In plain terms: you can start paying for leads before you are fully verified. The leads are real calls, messages, and bookings.
Requirements To Run Pre-Badge Ads
Google listed what you need before pre-badge ads go live:
- A license or business registration, in the US.
- Reviews, subject to category requirements.
- A completed billing setup with a budget.
- Headshots, if you are a professional service.
Pass those checks and Google opens the tap. You keep working through the rest of onboarding while leads arrive.
Who Cannot Use Pre-Badge Ads
Not every vertical qualifies. Google explicitly excludes three groups:
- Garage door services.
- Health care verticals.
- Locksmiths.
If your business is in one of those categories, you still need the full onboarding path before any leads.
Google Massively Expanded LSA Verticals
The second change is bigger than it looks. Google vastly expanded and granularized the list of eligible business categories. The old list had generic buckets like "Restaurant" and "Dessert and coffee." The new list has dozens of specific types.
Dining And Cuisine
New eligible categories include Acai Shop, African Restaurant, Asian Fusion, Bubble Tea Shop, Buffet, Fast Food, Fine Dining, Halal, Korean, Meal Delivery, Poke Bar, and Vegan. If your restaurant or food business fits one of these, you may now qualify for LSA leads where you did not before.
Auto Services
The old generic "Auto repair" and "Auto body" categories were broken into highly specific services: Auto Air Conditioning Service, Auto Glass Repair, Brake Shop, Car Battery Store, Oil Change Service, and Transmission Shop. Auto shops can now target the exact service a customer searches instead of competing inside one broad bucket.
Beauty And Personal Care
Google added Eyebrow Salon, Eyelash Salon, Facial Spa, Hair Braiding, Hair Extension Technician, Makeup Artist, and Tanning Salon. It also removed regional limits: Barber shop, Hair salon, and Nail salon were previously restricted to California and Florida only. Those restrictions are gone, which opens LSA to salons across the US for the first time.
Google says granular categories were a top request from LSA advertisers, and more verticals are on the way.
Google Verified Badge Exclusions Widened
The third change is a caution flag. Google broadened the list of verticals that cannot display the Google Verified badge. The old restriction covered dining verticals only, like Food and Beverage, Restaurants, and Dessert and Coffee. The new restriction covers verticals in the auto, beauty, and dining categories.
Read that carefully. Auto, beauty, and dining businesses can run Local Services Ads, but they cannot show the verified badge. Your ad can still appear and generate leads, but you compete without the trust signal that usually sits at the top of the results.
What This Means During The Google Ads Migration
You might wonder why Google is expanding LSA while folding it into Google Ads. Google confirmed it is still investing in LSA, and the migration runs in phases through 2027. These new features carry over into Google Ads when your account transitions.
The practical takeaway for small businesses is simple:
- Pre-badge ads shorten the dead zone. Verification waits used to cost weeks of leads. Now you can launch fast and finish screening in the background.
- New verticals mean first-mover advantage. Newly eligible businesses get a window with less competition. Speed wins.
- Badge exclusions change strategy. Auto, beauty, and dining compete without the badge, so reviews and response speed matter more.
How To Use Pre-Badge Ads Now
Here is a five-step path to get leads this week:
- Confirm your exact category. Check the updated eligible vertical list. Use your specific service, not a generic phrase. A Brake Shop and an Oil Change Service are now separate categories.
- Gather documents early. License or business registration, category-required reviews, headshots for professional services, and billing setup. Have them ready before you start onboarding.
- Pass the preliminary checks. This is the gate that unlocks pre-badge leads.
- Go live and keep working. You collect leads while finishing the remaining requirements. Stay on top of them so the badge follows as fast as possible.
- Plan around the badge. If you are in auto, beauty, or dining, assume no badge and build trust through reviews, fast responses, and consistent messaging.
FAQ
What is a pre-badge ad on Google Local Services Ads?
A pre-badge ad is an LSA listing that receives leads after you pass preliminary checks but before you finish all onboarding and earn the Google Verified badge.
Do pre-badge ads show the Google Guaranteed badge?
No. You only display the Google Verified badge after completing all onboarding requirements, including background checks. Pre-badge listings run without it.
Which businesses can run pre-badge ads?
Any business whose category allows LSA, except garage door services, health care verticals, and locksmiths. You need a license or registration, reviews, and completed billing.
Did Google expand which businesses can use Local Services Ads?
Yes. Google added dozens of specific categories across dining, auto, and beauty, and removed state restrictions for barber shops, hair salons, and nail salons.
Will pre-badge ads still work after LSA moves into Google Ads?
Yes. Google confirmed these features migrate into the Google Ads platform when your account transitions, with the rollout continuing through 2027.
Why do auto, beauty, and dining businesses run without the Google Verified badge?
Google updated the badge exclusions in August 2026 to cover auto, beauty, and dining. Those businesses can advertise and collect leads, just without the verified badge.
Get Leads Before Your Competition
Pre-badge ads and the new verticals are a genuine opening for small businesses. The businesses that move first get cheap leads in fresh categories and a head start on verification. The ones that wait will compete against them later.
JC Labs builds the automation that makes this fast: eligibility checks against the updated vertical list, onboarding checklists that pre-fill your documents, review-velocity workflows, and lead tracking for every call and booking. If you want your LSA account live before your competitors, start the onboarding work today.