Google Ads vs Google Local Services Ads: Which Is Right for Your Business?
Getting your business noticed online is harder than ever. Customers are spoilt for choice, competitors are bidding for the same space, and if you’re not showing up when someone searches for your services, you risk losing that lead forever.
That’s where Google’s advertising platforms come in. Two of the most popular options for service-based businesses are Google Local Services Ads (LSAs) and Google Ads (commonly known as Pay-Per-Click or PPC ads).
At first glance, they might look similar. Both help you appear in search results, both cost money to run, and both can generate enquiries. But underneath, they work very differently and choosing the right one for your business can make a big difference in your return on investment.
In this guide, we’ll break down exactly how LSAs and Google Ads work, compare their pros and cons, and help you decide which option (or combination) is right for you.
What Are Google Local Services Ads (LSAs)?
Google Local Services Ads are designed specifically for businesses that provide local services. Think of plumbers, electricians, cleaners, pest control specialists, lawyers, and even healthcare providers.
When you run LSAs, your business can appear right at the very top of Google search results, even above regular Google Ads. The listing includes:
– Your business name
– Average star rating
– Number of reviews
– Location and opening hours
– Contact options (call or message directly)
The standout feature? LSAs run on a pay-per-lead model. Instead of paying whenever someone clicks, you only pay when a potential customer takes an action that counts as a valid lead (like calling you or sending a message through the ad).
Another huge factor is the Google Guarantee badge. If your business is eligible and passes Google’s screening (like background checks, licence verification, and insurance checks), you get a green badge that reassures customers you’re trustworthy. In some cases, Google will even reimburse customers if they’re not satisfied with the work. That extra layer of trust can give you a big edge.
Key Benefits of LSAs
– Appear at the very top of Google search.
– Pay only for valid leads (not every click).
– Google Guarantee badge builds instant trust.
– Simple to set up and manage.
Limitations of LSAs
– Only available for certain industries.
– Less control over targeting, keywords, and messaging.
– Lead volume can be unpredictable depending on demand in your area.
What Are Google Ads (PPC)?
Google Ads (often called PPC or pay-per-click) are the more traditional form of online advertising. These ads appear just below LSAs in search results, and they can also show up on other Google platforms like YouTube or partner websites through display and video ads.
With Google Ads, you set up campaigns by bidding on keywords people type into Google. For example:
“Emergency plumber near me”
“Best accountant in London”
“House cleaning services prices”
Every time someone clicks your ad, you pay. That’s why it’s called pay-per-click. Whether that person becomes a lead or not, the click costs you money.
The upside is that Google Ads are highly customisable. You can:
– Choose specific keywords and negative keywords.
– Target by geography, demographics, or audience interests.
– Write custom ad copy to test offers and messages.
– Use different formats like text, display, shopping, or video ads.
Key Benefits of Google Ads
– More control over targeting, keywords, and budgets.
– Flexible for both local and national campaigns.
– Great for promoting offers, services, or brand awareness.
– Can scale up as your business grows.
Limitations of Google Ads
– You pay for every click, even if it doesn’t convert.
– Can get expensive in competitive industries.
– Requires ongoing optimisation to perform well.
Key Differences Between LSAs and Google Ads
Although both appear in Google search results, LSAs and Google Ads aren’t interchangeable. Here are the biggest differences:
1. Cost Model
– LSAs: Pay per lead (calls, messages, bookings).
– Google Ads: Pay per click (even if it doesn’t lead to an enquiry).
2. Placement
– LSAs: Very top of search results, above everything else.
– Google Ads: Below LSAs, above organic results.
3. Trust Factor
– LSAs: Eligible businesses get the Google Guarantee badge.
– Google Ads: No verification badge — trust must be built through reviews and ad copy.
4. Control & Flexibility
– LSAs: Limited targeting and creative control. Google decides when to show your ad based on your profile.
– Google Ads: Full control over keywords, targeting, ad copy, and budgets.
5. Eligibility
– LSAs: Only for specific industries and locations.
– Google Ads: Available to almost any business, anywhere.
Which Should You Use: LSAs or Google Ads?
The answer depends on your business goals. Let’s look at when each option makes sense.
LSAs Are Best For You If:
– You run a local service business (like plumbing, cleaning, legal, medical, or financial services).
– You want straightforward lead generation without managing complex campaigns.
– You want to leverage the Google Guarantee to instantly build trust.
– You mostly want phone calls or direct bookings.
Google Ads Are Best For You If:
– You want more control over who sees your ads and how much you spend.
– You serve a mix of local and national clients.
– You want to promote specific offers, blog content, or brand awareness (not just leads).
– You’re comfortable with testing, tracking, and optimising campaigns.
What About Using Both?
For many businesses, the best strategy isn’t choosing one or the other, it’s running both.
– LSAs capture high-intent leads from customers ready to book right now.
– Google Ads help you expand reach, build brand awareness, and capture customers earlier in their decision-making process.
Together, they cover both ends of the funnel — urgent enquiries and long-term growth.
How to Maximise Your ROI (Whichever You Choose)
Whether you go with LSAs, Google Ads, or both, the secret to success is management and optimisation. Here are some tips:
– Track your leads. Set up call tracking and form tracking so you know which ads are bringing results.
– Use strong reviews. Both LSAs and Google Ads highlight your ratings — ask happy customers to leave reviews regularly.
– Refine your targeting. Don’t waste money showing up in areas you don’t serve or for irrelevant search terms.
– Test your messaging. Try different headlines, service descriptions, or offers to see what resonates.
– Manage your budget wisely. Start small, gather data, and scale what works.
Google gives businesses two incredibly powerful advertising tools: Local Services Ads and Google Ads. Both can generate leads, but they do it in different ways.
– LSAs are perfect for straightforward lead generation for local services.
– Google Ads give you more flexibility and reach if you’re looking to grow.
If you’re serious about building a steady pipeline of customers, the best approach is often to test both. That way, you’ll know exactly which platform brings you the best return.
At Co Thought Digital, we help businesses cut through the confusion and create advertising strategies that actually deliver results.