Local Service Ads vs Google Ads: Which is Right for Your Business?
If you’re a business trying to grow online—especially a service-based business—you’ve likely come across two powerful tools in Google’s advertising arsenal: Local Service Ads (LSAs) and Google Ads. While both can drive traffic and generate leads, they work very differently and serve different goals.
In this article, we’ll break down the key differences between Local Service Ads and Google Ads, when to use each, and how to determine which is the right fit for your business.
What Are Local Service Ads?
Local Service Ads (LSAs) are designed for service-based businesses that want to generate leads directly from local customers searching for specific services—think plumbers, HVAC pros, lawyers, or real estate agents.
These ads appear at the very top of Google Search results—above both traditional Google Ads and organic listings. They include your business name, reviews, hours, and a call button, and prominently feature a “Google Guaranteed” or “Google Screened” badge if you’re verified.
The big difference? You pay per lead, not per click.
What Are Google Ads?
Google Ads (formerly AdWords) is Google’s flagship advertising platform. It allows businesses to create ads that appear across Google’s Search and Display Networks. This includes:
- Text ads on search results
- Image and video ads on YouTube
- Banner ads across Google’s partner websites
Google Ads operate on a pay-per-click (PPC) model—meaning you’re charged each time someone clicks on your ad, regardless of what happens next.
Unlike LSAs, Google Ads gives you a ton of flexibility in ad format, keyword targeting, audience selection, and bidding strategies.
Key Differences: Local Service Ads vs Google Ads
| Feature | Local Service Ads (LSAs) | Google Ads |
| Pricing Model | Pay-per-lead (only charged when contacted) | Pay-per-click (charged for each click) |
| Ad Placement | Appear at the very top of Google search results | Appear below LSAs and across Search/Display/YouTube |
| Setup Requirements | Requires verification, licenses, background checks | Can launch immediately with minimal setup |
| Targeting Options | Limited to categories and zip codes | Full control over keywords, audiences, and devices |
| Ad Customization | Standardized format (name, reviews, hours) | Full customization (headlines, descriptions, extensions) |
| Industries Supported | Select service-based industries only | Available to all types of businesses |
| Trust Indicators | “Google Guaranteed” or “Screened” badge | No built-in trust badge |
Pros and Cons of Local Service Ads
| Pros | Cons |
| Top-of-page placement above all other ads | Limited customization and targeting |
| Pay only for real leads | Only available to select industries |
| Easy for customers to call or message | Approval and verification process required |
| Builds trust with “Google Guaranteed” badge | No control over ad copy or keywords |
Pros and Cons of Google Ads
| Pros | Cons |
| Highly customizable campaigns and ad formats | Charged per click—even if user doesn’t convert |
| Detailed targeting options (keywords, audiences, etc.) | Can get expensive without proper optimization |
| Reach local, national, or international audiences | Requires ongoing management and testing |
| Supports search, display, video, and shopping ads | Steeper learning curve for beginners |
Which One Should You Use?
It depends on your business type, goals, and resources. Here’s a quick guide:
Use Local Service Ads if:
- You’re a local service provider (plumber, electrician, lawyer, real estate agent)
- You want high-quality local leads without the complexity of PPC
- Your business qualifies for the “Google Guaranteed” program
- You prefer paying only for leads that contact you
Use Google Ads if:
- You want more control over targeting, ad copy, and keywords
- You offer products or services not eligible for LSAs
- You have a broader advertising goal beyond just lead generation (e.g., website visits, brand awareness, ecommerce sales)
- You’re running a more complex digital marketing strategy
Why Not Both?
For many businesses, the best strategy is using both LSAs and Google Ads. LSAs help capture high-intent leads directly from Google search, while Google Ads give you flexibility to build awareness, retarget past visitors, and drive traffic across channels.
Running both together can help you dominate the local SERP and catch customers no matter where they are in the buying journey.
Final Thoughts
Local Service Ads and Google Ads are powerful tools—but they serve different purposes. If you’re a service-based business looking for easy, lead-focused results, LSAs are a great place to start. If you’re looking for flexibility, reach, and control, Google Ads may be the better option.
Ultimately, the most effective digital strategy often involves both. By understanding how each platform works, you can choose the one—or the combination—that aligns best with your goals and budget.
Not sure whether Local Service Ads or Google Ads are right for your business? At 7ten, we help clients choose the most effective strategy to reach their goals, attract high-quality leads, and get the best return on their ad spend.
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