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Google Says Out-of-State Local Services Ads Are Working as Intended

The Short Answer

On October 1, 2026, advertisers noticed Local Services Ads in California showing businesses from Illinois, New Jersey, Florida and Texas. On October 2, Google said the behavior was working as intended. So far the reports involve California searches, and nothing in them says Colorado is affected.

What Was Reported

The first report came from Len Raleigh, who posted screenshots of California searches that showed advertisers based in other states. Anthony Higman, who works with Local Services Ads, then checked the advertisers’ profiles. He found that the New Jersey businesses did not have Fresno or Arizona selected as areas they serve.

Google’s ads liaison replied that the results were working as intended, and that the screenshots included businesses that serve customers in the Fresno area. Both sides can be partly right here. Google may be reading service areas differently than the advertisers expect, or the settings may not show everything Google uses. Nobody outside Google has been able to confirm which.

The Mistake Worth Avoiding

Do not assume your service area settings mean what you think they mean. If you pay per lead, a lead from a city you never wanted to serve costs the same as a good one, and the only way to catch it is to look at where your leads actually come from.

What Actually Works

A short check you can do this week:
  • Open your Local Services Ads account and read the list of service areas, then compare it with where you really work.
  • Look at the location of your last 20 leads. Anything outside your area is worth a note.
  • Use the dispute option in your account for leads that are clearly out of area, and keep a screenshot of the lead.
  • If you compete with out-of-state advertisers in your searches, tell your ad rep or support what you see so there is a record.

The Takeaway

This is a small story with a practical lesson. When you pay per lead, your service area settings decide who you pay for, so check them on a schedule instead of once at setup.

Questions

Frequently Asked Questions

The reports so far come from California searches. Nothing in them says other states are affected, so check your own leads rather than assuming.
No. Google’s ads liaison said on October 2, 2026 that the behavior was working as intended and that the results included businesses serving the Fresno area.
Local Services Ads accounts have a way to dispute leads you think are wrong. Take a screenshot of the lead details first, since what you can see in the account may change.
Related: Google Will Now Charge You for Missed Local Services Ads Calls  |  Local Services Ads Are Moving Into Google Ads  |  Can I Pay Google to Rank Higher?
Source: Search Engine Roundtable

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