Local Services Ads vs. Google Ads: Which Is Better for Local Service Businesses?
For local service businesses—such as locksmiths, plumbers, HVAC, pest control etc.—Google offers two main tools to attract customers: Local Services Ads and traditional Google Ads. In this article, we’ll dive into the comparison of Local Service Ads vs Google Ads, exploring the features, benefits, and limitations of each, and assessing how effective they are for promoting local businesses.
Google Ads for Local Service Businesses
Google Ads is an advertising platform that allows your business website to appear at the top of Google search results. When potential customers search for services like yours, they’ll see your ad above the organic results, making them more likely to click on it. You pay only when someone clicks on your ad, not for impressions.
According to Wordstream’s 2023 Google Ads Benchmarks study, the average ROI for businesses using Google Ads is 200%. This means that for every $1 spent, businesses typically see a $2 return.

Google Ads
Pros and Cons of Google Ads for Local Service Businesses
PROS
- Broad reach: Google Ads is perfect for increasing brand awareness and attracting a large audience.
- Advanced targeting options: With Google Ads, you can target specific demographics, locations, and user behaviors, ensuring your ads reach the most relevant potential customers.
- Wide range of ad formats: Google Ads offers multiple ad formats, including text ads, video ads, display banners, and map ads. This flexibility allows you to select the format that best aligns with your business goals and target audience.
- Budget flexibility: You have the freedom to set a budget that suits your needs and adjust it based on the performance of your campaigns.
CONS
- High competition and cost: In certain niches, especially for popular services, competition can be intense, driving up the cost per click.
- Complexity of management: Successfully managing Google Ads requires experience and expertise. Without proper setup and optimization, you risk wasting your budget with little to no return.
With the right approach and strategy, Google Ads for Local Services companies can become a crucial channel for driving growth and development.

Local Services Ads (LSA)
Local Services Ads (LSAs) is an advertising platform designed to promote local businesses on a pay-per-lead basis. LSAs appear above search results and come with the Google Guaranteed badge, adding trust and credibility.

Local Services Ads
LSAs are available in the following countries:
- Austria
- Belgium
- Canada
- France
- Germany
- Ireland
- Italy
- Spain
- Switzerland
- United Kingdom
- United States
Watch this short video to learn more about Google Local Services Ads:
Pros and Cons of Local Services Ads
PROS
- Pay-per-lead model, not per click: You only pay for customers who are genuinely interested in your services and reach out to you, making your advertising more cost-effective.
- Automatic refunds for invalid inquiries: Google automatically refunds you for customer inquiries that aren’t valid.
- Google Guaranteed badge: The Google Guarantee badge on your ad boosts your business’s credibility and trustworthiness.
- Easy to manage: LSA campaigns are simpler to manage than Google Ads, making them ideal for small businesses without a dedicated marketing team. Plus, you don’t need to create any ads—Google automatically generates and manages them using information from your Google Business Profile.
CONS
- Small lead flow: The number of leads generated may be lower compared to other advertising channels.
- High cost per lead: The cost per lead can be relatively high, especially in competitive industries.
- Lack of control over leads: Unlike Google Ads, you have less control over the types of leads you receive.
- Complex verification process: A thorough verification process is required to qualify for LSAs.
- Lead volume depends on multiple factors: The number of leads from LSA campaigns largely depends on your Google reviews, the presence of the ‘Google Guaranteed’ badge, and your ability to outbid competitors.
Differences Between Google Ads and Local Services Ads
Feature/Aspect | Google Local Services Ads (LSAs) | Google Ads |
Control | Limited control over audience and services. If you get an irrelevant lead, you will still have to pay for it. | Full control over audience targeting, keywords, and services, allowing you to attract only targeted leads. |
Ad Format | Ads appear with a business profile including ratings, reviews, and contact info. | Variety of formats including Search, Performance Max, Google Maps. |
Ad Placement | Ads appear at the top of Google search results for relevant queries. | Ads can appear in search results, on partner websites, in videos and on Google Maps. |
Targeting | Location-based targeting, aimed at users searching for local services. | Extensive targeting options including keywords, demographics, interests, precise geo-targeting at the ZIP code level and more. |
Payment Model | Pay-per-lead (PPL)—pay only for valid leads received. However, you do not have control over the quality of the leads, and you still have to pay for them. | Pay-per-click (PPC). You fully control the quality of traffic, the quality of clients and the types of services that this traffic comes for. |
Verification | To be eligible for Local Services Ads, every business must successfully complete Google’s screening and verification process. | In Google Ads, advertisers must undergo a verification process. For some businesses (e.g., locksmith services in the United States), advanced verification is required. |
Reporting | Basic reporting focused on lead generation and cost per lead. | Comprehensive reporting on clicks, impressions, conversions with transparent end-to-end analytics. |
Cost Control | 2 bid models available: Maximize leads and Set max per lead. You set your average weekly budget. | Flexible budget control with daily or campaign limits, and advanced bid strategies for cost efficiency. |
Explore our article on Home Improvement Marketing and uncover more strategies to promote your local services business.
Wrapping Up
Google Ads is a more profitable and flexible option for promoting local service businesses.
While LSAs offer a simplified setup and an appealing pay-per-lead model for beginners and small businesses, the platform limits control over targeting, ad formats, and placements.
In contrast, Google Ads provides far more options for customizing and optimizing your advertising campaigns, giving businesses greater control and potential for higher returns.
If you own a locksmith, plumbing or HVAC business, explore our guides for proven strategies to run successful Google Ads campaigns:
FAQ
What is the difference between Local Service Ads and Google Ads?
Local Service Ads (LSAs) are specifically designed for local service businesses (e.g., locksmiths, plumbers) to generate leads from nearby users searching for their services. These ads appear at the top of Google search results and Google Maps, and businesses only pay for leads, not clicks. LSAs also offer limited control over ad content and targeting but include a “Google Guaranteed” badge, boosting trust with potential customers.
In contrast, Google Ads is a broader advertising platform suitable for all business types. It allows full control over ad copy, targeting, and budget, with various formats like search, display, and video ads. Unlike LSAs, Google Ads operates on a pay-per-click (PPC) model.
Do Local Service Ads work for all business categories?
Local Service Ads (LSAs) are not suitable for every business. They are designed specifically for certain categories of local businesses, such as locksmiths, plumbers, roofers, auto repair shops etc.. For more details, you can refer to Google. On the other hand, Google Ads is suitable for any type of business and provides more control over lead generation and ad campaigns.
Do I need a website to run Local Service Ads?
No, LSAs do not require a website since all relevant information about the business and services is displayed directly in the ad.
In contrast, Google Ads does require a website, as most ad campaigns direct users to your site for further information.
What is Google Guaranteed, and how do I get that badge?
Google Guaranteed is a trust badge awarded to businesses that have been vetted and qualified by Google. This badge signals to potential customers that the business meets specific standards and provides reliable services. If a customer is dissatisfied with the service from a Google Guaranteed business, Google offers a reimbursement option, with a maximum compensation limit of $2,000 in the U.S.
Can I combine Local Service Ads and Google Ads?
Yes, many businesses successfully combine both platforms to enhance their marketing efforts. LSAs help attract local customers actively seeking services, while Google Ads allows businesses to reach a broader audience through search and display networks. By utilizing both, you can maximize their visibility and effectively target different segments of potential customers.
How to measure the Performance of Local Services Ads vs. Google Ads?
For Local Services Ads (LSAs), the key metrics to track include cost per lead and the number of calls received.
For Google Ads, it’s important to monitor metrics such as cost per click (CPC), conversion rate, and return on investment (ROI). These indicators provide insights into the performance of your campaigns, allowing you to optimize your strategy and budget effectively.
By comparing these metrics, you can determine which platform delivers better results for your business objectives.

Viktoria Arsenteva
Marketing Manager at Lira Agency. I enjoy creating valuable and informative content for our clients and visitors. I spend my free time reading books on marketing and psychology.