2026 REPORT
State of Local Advertising 2026
A short benchmark on the channels local businesses actually choose between. It is short on purpose. Two documents about local advertising publish both a number and the method behind it: the USPS Household Mail Survey, filed with the Postal Regulatory Commission, and a Local Services Ads benchmark that publishes its sample (888 contractors, $6.72M spend, 126,650 leads). Everything here comes from those two, and every figure carries the link and the date we opened it. Where a channel publishes nothing, this page says so instead of filling the gap.
Key findings
61%
Advertising mail read or set aside for later
Source: USPS Household Mail Survey, FY 2025, Figure 5.7. Verified 2026-07-25.
36%
Read rate for mail to people who have never bought from you
Source: USPS Household Mail Survey, FY 2025, Table 5.5. Verified 2026-07-25.
$53
Cost per lead, Google Local Services Ads, home services
Source: SearchLight Home Services LSA Benchmark, February 2026, 888 contractors, $6.72M spend, 126,650 leads. Verified 2026-07-25.
$233
Cost per paying customer on the same spend
Source: SearchLight Home Services LSA Benchmark, February 2026, 888 contractors, $6.72M spend, 126,650 leads. Verified 2026-07-25.
The benchmark in three charts
Households considering a response
Stated intent, not measured response. USPS Household Mail Survey, FY 2025, Table 5.6 for the prospect pair and Table 5.5 for past customers.
Cost per lead, Google Local Services Ads
SearchLight Home Services LSA Benchmark, February 2026, 888 contractors, $6.72M spend, 126,650 leads. Observed spend, not a published rate card: Google itself publishes no lead price. We assert no cost per lead of our own until our drops have produced one.
What households do with advertising mail
USPS Household Mail Survey, FY 2025, Figure 5.7
What the data actually says
Start with the number nobody disputes, because USPS collects it and files it: 61% of advertising mail is read or set aside for later, and 39% is binned unread. Then narrow it to the mailing a local business is actually buying. A saturation drop goes to strangers, and the stranger row is lower than the headline: 36% of mail to a household with no prior relationship gets read. That gap is the single most useful thing in the survey, and it is the reason the channel rewards repetition in one zone over one pass across five.
The cost-per-lead chart prices the one channel that publishes a lead price with a method attached. LocalAd is deliberately absent from it. Quoting our own cost per lead would mean asserting a response rate, and the saturation-mail response figures in circulation do not appear in the reports they are attributed to. We will publish ours from QR scan data once enough drops have shipped to make the number mean something, with the sample size printed next to it.
Read our trade-specific breakdowns for the underlying playbooks: plumbing, roofing, house cleaning, and HVAC.
Everything is on this page
There is no gated PDF and no longer version. Every figure above links to the document it came from, so you can read the table rather than take ours. If a number here looks wrong, tell us and we will fix it or pull it.
Challenge a figureGet the 2027 edition
We plan to rebuild this once a year from whatever is published and checkable at the time. Email us and we will send the 2027 edition when it exists.
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