CallRadius warns advertisers on Google’s Oct. 1 missed-call billing change

Google will start charging some Local Services Ads advertisers for unanswered calls starting Oct. 1, 2026, including missed calls that last more than 20 seconds and some follow-up calls. CallRadius has published guidance to help advertisers reduce surprise charges before the policy takes effect.

Why it matters: - Google’s update could turn routine missed calls into paid leads for Local Services Ads advertisers. - Businesses with thin phone coverage may see more charges even when a call never becomes a real job. - The change raises the stakes for answering speed, call routing and accurate business hours.

What happened: - Google will begin charging some Local Services Ads advertisers for unanswered calls starting Oct. 1, 2026. - CallRadius, a human-managed Google LSA service based in Scottsdale, Arizona, published five steps advertisers can take before the change. - The guidance is aimed at advertisers trying to limit missed-call billing before the policy takes effect.

The details: - A missed call during business hours can be billed as a lead if the caller remains on the line for more than 20 seconds. - A follow-up call from the same customer can also be charged if the first call was not billed and the later call meets Google’s valid-lead criteria. - For businesses using a phone menu, the 20-second timer starts only after the caller presses a key. - A caller who never presses a key is not charged. - Google says it is adding safeguards to reduce robocalls and spam calls. - Google described the update as a way of “rewarding businesses that provide excellent responsiveness.” - The notice does not define “business hours.” - The notice does not explain how the spam safeguards will work. - Advertisers do not yet know how many missed calls will be billed. - CallRadius founder Doug Brown said the change turns an unanswered phone into a line item and can cost businesses both the job and the lead fee.

The details: - CallRadius recommends that advertisers check the business hours listed in their accounts. - Listed hours should match real phone coverage. - If listed hours run longer than actual answer coverage, every call in that gap becomes a potential charge. - CallRadius recommends identifying when calls go unanswered, including lunch hours, end of day and Friday afternoons. - Those gaps should either be staffed or removed from the listed hours. - CallRadius recommends reviewing call routing so a phone menu reaches someone who can book the job. - CallRadius recommends watching charged leads closely in October and comparing them with the calls the team actually handled. - CallRadius recommends rating questionable leads promptly so Google’s automated system can review lead feedback.

Between the lines: - The change gives Google a stronger way to monetize low-response advertising accounts. - The lack of a clear definition for business hours creates uncertainty for advertisers with variable schedules. - The policy may favor businesses with tight call coverage and penalize those with after-hours gaps or slow routing. - Brown said businesses cannot fix gaps they cannot see, and CallRadius’s reporting is designed to show which charged calls were not answered.

What’s next: - Advertisers will need to compare billed calls against actual call handling once the policy starts on Oct. 1. - Businesses using Local Services Ads should expect to audit hours, routing and lead disputes early in the new billing period. - Google is also moving Local Services Ads into Google Ads as Performance Max campaigns, a migration that began with selected U.S. advertisers in August 2026. - CallRadius says its account management and reporting tools are built to help advertisers find coverage gaps and reduce avoidable charges.

The bottom line: - Google’s new missed-call billing rule makes phone coverage a direct cost issue for Local Services Ads advertisers, not just a customer service problem.