http://developer.android.com/google/play-services/setup.html
Quoting docs
If you want to test your app on the emulator, expand the directory for
Android 4.2.2 (API 17) or a higher version, select Google APIs, and
install it. Then create a new AVD with Google APIs as the platform
target.
Needs Emulator of Google API”S
See the target in the snap
Snap
I prefer testing on a real device which has google play services installed