Google has announced significant updates to Local Service Ads (LSAs) as it continues to invest in the LSA product even during its transition to Google Ads.

The newly introduced pre-badge ads enable businesses to receive leads after passing preliminary checks while completing required onboarding. However, these ads are unavailable for specific services such as garage door services, healthcare, and locksmiths.
The expansion of eligible verticals addresses a top request from advertisers, shifting from broad categories to more specific services, thereby enhancing targeting capabilities.
Additionally, updates to the Google Verified Ads badge exclusions have broadened restrictions, now including auto, beauty, and dining categories.
This update was surfaced by Barry Schwartz.